Lisbon overturns short-term rental rules that failed to cut housing costs
6 days agoLisbon, PortugalScore: 85
Summary
Lisbon, Portugal is overturning strict short-term rental restrictions after they failed to make housing more affordable and actually increased prices. This is a cautionary tale for hosts as it demonstrates that limiting STRs can backfire. Hosts should stay informed about local regulations and advocate for balanced solutions.
Key Insights
- •In Lisbon, the annual growth rate of house sale prices nearly doubled, and rental prices accelerated from 5.7% to 9.2% after short-term rental restrictions were imposed in 2019.
- •Hotel prices in Lisbon increased by 30% between 2022 and 2024.
- •In New York City, the de facto ban on short-term rentals since 2023 hasn't increased housing availability or affordability, with vacancy rates unchanged and rents continuing to rise, despite Airbnb short-term listings dropping by approximately 92 percent.
Action Items
- ✓Hosts should monitor how local regulations impact housing costs and potentially advocate for policies that consider a holistic approach to affordability.Effort: mediumImpact: medium
Watch Out For
- ⚠Failing to understand the impact of local regulations on the market could lead to missed opportunities and decreased profitability.