Key Insights:
Major European cities are dramatically restricting short-term rentals, with Barcelona phasing them out entirely by 2028, Amsterdam slashing annual rental caps to just 15 nights in central districts, and Lisbon banning new licenses in 19 neighborhoods where STRs exceed 20% of housing stock. In the U.S., Washington City, Utah, has implemented immediate regulations with steep $750 daily fines for violations, while Pinellas County, Florida, now requires a $450 Certificate of Use plus inspection fees. A bright spot emerges in North Carolina, where proposed bill S.B. 291 could block municipalities from banning short-term rentals, potentially creating a more investor-friendly environment. Meanwhile, Houston is preparing to vote on a $275 annual registration requirement, and Los Angeles is intensifying enforcement of existing regulations ahead of the 2028 Olympics. Investors should prioritize markets with stable regulatory environments or those proposing investor-friendly legislation like North Carolina, while avoiding high-restriction European cities where the trend toward severe limitations continues to intensify.
Major Impact Areas:
Lisbon, Portugal
Date of Announcement: March 26, 2025
Impact Level: MAJOR
Regulation Category: Licensing
Summary: Lisbon has implemented a ban on new short-term rental licenses in 19 neighborhoods and 8 parishes, including tourist hotspots like Alfama and Bairro Alto, where holiday rentals exceed 20% of housing stock, significantly limiting new investment opportunities. The freeze on licenses in areas surpassing 5% short-term rental density aims to ease housing affordability pressures, potentially increasing the value of existing licensed properties due to restricted supply.
Source: Lisbon bans “AL” short-term rentals in 19 neighbourhoods and eight parishes
Barcelona, Spain
Date of Announcement: March 13, 2025
Impact Level: MAJOR
Regulation Category: Licensing
Summary: Barcelona's plan to phase out holiday apartment rentals by 2028, upheld by Spain's Constitutional Court, will prevent the renewal of tourism licenses, posing a major threat to short-term rental investors' long-term revenue in the city. The ruling supports efforts to combat rising rents, signaling a shift that could reduce the profitability of existing properties unless operators adapt to alternative rental models.
Source: Spain's top court backs Barcelona's plan to ban holiday apartments
Amsterdam, Netherlands
Date of Announcement: March 12, 2025
Impact Level: MAJOR
Regulation Category: Occupancy
Summary: Amsterdam's new 15-night annual cap on short-term rentals in two central districts sharply reduces the income potential for investors, following previous cuts from 60 to 30 nights, as the city prioritizes housing for residents over tourism. This tightened occupancy limit could push operators to explore mid-term rentals or shift investments to less regulated areas to maintain profitability. Source: Amsterdam gets tougher on holiday rentals
Washington City, Utah
Date of Announcement: March 30, 2025
Impact Level: MAJOR
Regulation Category: Licensing, Safety
Summary: Washington City has introduced immediate regulations requiring short-term rental operators to secure business licenses, maintain a 24/7 local contact, and comply with safety and occupancy rules, with hefty $750 daily fines for violations. These changes aim to curb overcrowding and safety issues, potentially raising operational costs and necessitating management adjustments for investors.
Source: Set to take effect immediately: Washington City tightens short-term rental regulations
Moderate Impact Areas
Pinellas County, Florida
Date of Announcement: March 26, 2025
Impact Level: MODERATE
Regulation Category: Licensing, Safety, Parking, Noise
Summary: The Pinellas County Commission has approved an ordinance mandating short-term rental owners to obtain a certificate of use and comply with safety, parking, and noise regulations to enhance accountability in unincorporated areas. The law, enforceable by the county after state filing, includes occupancy limits and safety inspections to preserve neighborhood quality of life.
Source: Pinellas County Commission OKs short-term rental ordinance, increased accountability
Hattiesburg, Mississippi
Date of Announcement: March 20, 2025
Impact Level: MODERATE
Regulation Category: Licensing, Zoning
Summary: Hattiesburg's new ordinance requires short-term rental operators to obtain a privilege tax license, adhere to zoning and fire safety rules, and pay initial fees of $250 plus $130 annually, with a cap at 2.5% of residential structures. While increasing costs and compliance burdens for investors, the license cap could reduce competition, offering a mixed impact on the market.
Source: Hattiesburg City Council passes short-term rental ordinance
Developing Regulations
Houston, Texas
Date of Announcement: March 28, 2025
Impact Level: DEVELOPING
Regulation Category: Licensing, Safety, Noise, Taxes
Summary: Houston is preparing to vote on April 3, 2025, on an ordinance requiring short-term rentals to register, pay a $275 annual fee, and meet noise, safety, waste, and tax regulations, with a 180-day implementation period. Non-compliant rentals face removal from platforms, aiming to regulate the industry while addressing community concerns.
Source: City of Houston to vote on new ordinance for Airbnb, Vrbo, other short-term rentals
Los Angeles, California
Date of Announcement: March 28, 2025
Impact Level: DEVELOPING
Regulation Category: Enforcement
Summary: Los Angeles is intensifying efforts to enforce short-term rental regulations, spurred by a 12-0 City Council vote to assess resources for stricter oversight, following lax enforcement of a 2018 ordinance. The proposed measures, including increased staffing and platform verification, aim to address illegal rentals and concerns over price gouging and displacement ahead of the 2028 Olympics.
Source: L.A. Considers Short-Term Rental Crackdown Four Years After The Motion Was First Proposed
North Carolina, USA
Date of Announcement: March 25, 2025
Impact Level: DEVELOPING
Regulation Category: Zoning
Summary: Proposed bill S.B. 291 in North Carolina could block municipalities from banning short-term rentals, potentially safeguarding investors' ability to operate freely across the state if it passes. This developing regulation might counteract local restrictions, such as those in Pinehurst, offering a more favorable environment for short-term rental expansion, though its outcome remains uncertain.
Source: New Bill Could Limit Short-Term Rental Restrictions & New bill seeks to regulate short-term rentals in cities and towns
European Union
Date of Announcement: March 26, 2025
Impact Level: DEVELOPING
Regulation Category: Transparency, Data Sharing, Fair Treatment
Summary: The EU's investigation into Airbnb's potential "gatekeeper" status under the Digital Markets Act could impose stricter transparency, data-sharing, and fair treatment rules, indirectly affecting investors by increasing platform compliance costs and possibly altering booking dynamics. If Airbnb faces penalties up to 10% of its global turnover, operational changes could ripple through to property owners, though the impact remains speculative pending the investigation's outcome.
Source: Airbnb challenges its inclusion as a “gatekeeper”
Lorain, Ohio
Date of Announcement: March 26, 2025
Impact Level: DEVELOPING
Regulation Category: Zoning
Summary: Lorain is considering revisions to its short-term rental regulations to permit Airbnb and Vrbo properties in residential areas, removing a $500 application fee and Planning Commission approval requirement. This update aims to simplify the process for short-term rental operators and encourage compliance.
Source: Lorain looks to revise short-term rental regulations
Holmdel Township, New Jersey
Date of Announcement: March 27, 2025
Impact Level: DEVELOPING
Regulation Category: Zoning
Summary: Holmdel Township is advancing a ban on short-term rentals like Airbnbs, citing potential disruptions to neighborhood character, with a final vote set for April 8. Alongside this, the township purchased Potter's Farm for $4.5 million to preserve open space and block unwanted development.
Source: Holmdel spends $4.5M to buy farm and avoid development, moves to ban short-term rentals
Marion, Massachusetts
Date of Announcement: March 25, 2025
Impact Level: DEVELOPING
Regulation Category: Zoning
Summary: The Marion Planning Board is refining a short-term rental bylaw with updated terminology and citations, unanimously approving changes after incorporating public feedback on rental proliferation and housing concerns. Ongoing discussions suggest potential future zoning restrictions that could alter the operational landscape for investors in the area. Source: Short-Term Rental Bylaw Discussions Continue