Lisbon overturns short-term rental rules that failed to cut housing costs
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 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.
- •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.
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
Common Mistakes
- ⚠Failing to understand the impact of local regulations on the market could lead to missed opportunities and decreased profitability.
More from Regulations & Compliance
The Green Bay Common Council will consider changes to its short-term rental ordinance. This could involve new regulations or revisions to existing rules. Hosts in Green Bay should stay informed about potential updates and how they might impact their operations.
Local commissioners denied a short-term rental application, suggesting potential regulatory hurdles for new STR operations. This indicates increasing scrutiny on STRs within this locality. Hosts should be aware of potential local restrictions and permitting requirements before investing in or launching short-term rentals.
The Green Bay Plan Commission is updating its short-term rental ordinance. Details are not given, but this news signals potential changes for hosts in the area. Hosts should stay informed about the new regulations to ensure compliance and avoid penalties.
Curated by Learn STR by GoStudioM