SMOi: More bans on short-term rentals do not mean more apartments

The Association Save Small Family Renters (SMOi), in response to the proposal of the European Commission’s Regulation on Affordable Housing, emphasizes that more bans do not bring more apartments and calls for all short-term rental bans to be based on real data and a proven link to the housing crisis.

The proposal for the European regulation on affordable housing was presented on Wednesday in Brussels. On this occasion, SMOi warns of a serious risk that broad restrictions on short-term rentals will be introduced with the aim of increasing housing availability, even though there is still not enough data to prove that small family tourist rentals are the main cause of the housing shortage.

– We support the goal of increasing the availability and affordability of housing, but the housing crisis cannot be solved by shifting the responsibility for a structural problem onto citizens who legally use their own property. You cannot limit someone’s use of their property and at the same time claim that you have created a new apartment – says SMOi president Vedran Tomić.

It states that the European private accommodation association – European Holiday Home Association (EHHA), pointed out that the European regulation on the collection and exchange of data on short-term rentals has been in effect only since May 20, and the establishment of a comparable European data base is still in preparation.

SMOi notes that the first comprehensive data will not be available before 2028, and therefore EHHA rightly warns that without real data it is not possible to reliably determine where short-term rentals create pressure on housing nor whether a particular restriction is necessary and proportionate.

It adds that EHHA considers the introduction of broad and long-term bans unacceptable before it is clarified how much short-term rentals actually contribute to the housing shortage and how many properties would actually return to the long-term rental market after the ban.

The biggest problem is the rapid growth of non-commercial accommodation

SMOi presents data indicating that short-term rentals account for about 1.2 percent of the conventional housing stock in the EU, while about 20 percent of housing units are vacant.

– In Croatia, the picture is even more dramatic – about 40 percent of the housing stock is not in use for housing, while the capacities of small family renters account for less than one percent of the housing stock. This raises a question that can no longer be overlooked – if we want more available apartments, why do we not first address vacant and neglected properties, new construction, and increasing supply where apartments are truly lacking? – ask SMOi.

They believe that a ban on short-term rentals does not create any new apartments, nor is every property that is rented out for tourism suitable or available for year-round rental, as they often involve apartments in family homes, properties that owners regularly use and only occasionally rent out, or properties in areas where there is no real demand for year-round rentals.

A particular problem in Croatia is the growth of non-commercial accommodation (holiday homes, houses, and apartments for vacation), with the message that it should be distinguished from small family renters whose number of beds has mostly remained between 650 and 670 thousand for years.

On the other hand, according to data presented by SMOi, the number of beds in non-commercial accommodation has nearly doubled – from approximately 355 thousand in 2016 to over 700 thousand in 2025.

– If we want to seriously investigate the relationship between tourism, real estate, and housing availability in Croatia, then we must analyze the entire housing and tourist stock, and not preemptively label legal family accommodation as the culprit. European experiences also warn that fewer apartments do not necessarily mean more apartments, and that it is crucial how many new apartments will be obtained, not how many apartments we will shut down. And if apartments are arbitrarily eliminated without an impact assessment, one must also ask who profits the most from the systematic extinguishing of private accommodation? – says SMOi.

The European Commission proposed the Affordable Housing Act on Wednesday, which should provide more legal certainty to the competent authorities in member states when adopting measures to increase available housing so that these measures do not violate the rules of the single market.

Energy and Housing Commissioner Dan Jørgensen stated that some countries have introduced a ban on keeping apartments vacant, forcing owners to either live in them or rent them out to others, and now this regulation should provide legal certainty for that measure.

The Affordable Housing Act should help the competent authorities identify areas where the housing crisis is most pronounced and take proportional and targeted measures to make more homes available and affordable.

In recent years, short-term rentals have grown significantly. For example, in Madrid, for every 100 apartments in long-term rental, there are 40 apartments for short-term rental. The Commission also cites the example of Zagreb, where 19 percent of apartments are vacant.