As of early 2025, the European is working to enhance management of the rapid expansion of short-term rentals (STRs). Platforms like Airbnb, Booking.com, and Vrbo have become deeply embedded in Europe’s tourism landscape, offering millions of travelers flexible, affordable accommodation options. While this growth has unlocked new income opportunities for property owners and diversified tourism offerings across the EU, it has also presented regulatory challenges, particularly in terms of data transparency and its impact on housing markets.

The increasing presence of STRs has raised discussions about their effects on housing availability, property prices, and the character of residential areas. Some local governments have expressed concerns about the influence of STRs on urban housing dynamics, including their potential impact on affordability and neighborhood composition. Addressing these issues requires access to reliable data.

In response to these challenges, the European Union has begun taking decisive action to regulate data-sharing practices within the STR sector. The landmark Regulation (EU) 2024/1028, which officially came into force in May 2024 and shall apply from 20 May 2026, marks a significant step forward in harmonising data-sharing obligations across member states. The regulation mandates that online STR platforms provide authorities with essential information about rental activity, ensuring greater transparency and accountability. 

One of the regulation’s most significant features is the introduction of a standardised registration system for hosts. Under this framework, property owners offering STRs are now required to register through a simplified digital platform, obtaining a unique identification number that must be displayed on all listings. This measure is intended to simplify administrative processes and assist authorities in monitoring rental activity more effectively.

The obligation for platforms to share relevant data with national and local governments is another key pillar of the regulation. By receiving consistent, accurate data, authorities can better enforce local housing laws, implement zoning restrictions.. This shift empowers cities and municipalities to adopt data-driven and proportionate regulations for STR, including when faced with the need to strike a balance between supporting tourism growth and protecting housing affordability for residents. The regulation also ensures that data-sharing practices align with the EU’s stringent data protection rules, particularly those outlined under the General Data Protection Regulation (GDPR).

Despite these advancements, challenges remain. The absence of a unified approach in data sharing in the past has made it difficult for local governments to regulate STRs effectively. Differences in regulatory frameworks and some registration demands already in place among EU member states have led to a fragmented landscape, preventing effective STR regulation where needed while leading to the adoption of disproportionate policies in other places. 

The potential of digital tools to enhance data transparency is increasingly being recognised across the EU. Technologies like blockchain and artificial intelligence (AI) offer promising avenues for improving regulatory enforcement. These tools could serve several functions:

• Blockchain technology could establish tamper-proof registries of STR properties, ensuring only legally registered rentals appear on platforms.

• AI-powered monitoring systems could detect fraudulent listings or identify STRs operating outside legal frameworks in real time.

• Data-driven analytics could help local governments predict the impact of STR growth on housing markets and adjust policies accordingly.

While these technologies offer potential benefits, their effectiveness will depend on adoption by STR platforms and property owners. The extent to which they are integrated into regulatory frameworks remains an ongoing consideration.

Croatia’s eVisitor platform, an online system for registration and deregistration of tourists, is another example of how digital tools can enhance data management. By providing real-time insights into tourism trends, the system has facilitated improved regulatory oversight. Similar data-sharing initiatives in other EU countries could help address challenges related to tourism and housing policies.

STR platforms are expected to comply with regulatory requirements while maintaining adherence to EU data protection laws. Local authorities will play a role in utilizing shared data to refine policies that support both tourism and housing stability. Travelers, too, contribute by choosing accommodations that align with local regulations and responsible tourism practices.

The EU’s evolving approach to regulating STRs and enhancing data transparency reflects an effort to balance tourism growth with broader economic and social considerations. As the regulatory framework continues to take shape in 2025, measures such as the Short-Term Rental Regulation represent steps toward a more structured and transparent STR market. While challenges remain, ongoing initiatives suggest a commitment to refining policies that accommodate diverse interests across Europe’s tourism and housing sectors. For now, the implementation of the EU STR Regulation will proceed without direct support from the Common European Tourism Data Space, an initiative launched in 2023 to enhance data collaboration among policymakers, businesses, and researchers. Its long-term potential to improve tourism governance, sustainability, and innovation remains promising, but its integration with STR policies has yet to materialize.