Short-term rental (STR) accommodation has grown significantly across the EU in recent years. In discussions around the impacts of STRs, some local authorities have implemented restrictions aimed at addressing concerns related to housing affordability and urban environments, often without comprehensive evidence-based analysis. However, the causal link between STR activity and these outcomes is still not well established. Understanding the true effects of STRs requires rigorous evaluation approaches that go beyond identifying simple correlations.

This Oxera report, commissioned by Booking.com, sets out an evidence-based framework to inform STR regulation. It provides practical guidance for local authorities on how to determine whether regulatory action is warranted and how to identify causal impacts using robust economic methodologies. Where intervention is deemed appropriate, the report promotes best practice by recommending the least restrictive measures capable of addressing the identified market failure, while limiting unintended market distortions and aligning with the EU principle of proportionality.