Short-Term Rentals Generate €149B Economic Impact, 2.1M Jobs Across EU in 2023
Evidence-based short-term rental rules protect the right to live, host, and travel affordably in Europe.
A new report by Oxford Economics commissioned by Airbnb, finds short-term rentals (STRs) generated €149 billion in economic benefits and supported 2.1 million jobs across European Union countries in 2023. These figures underscore the vital role STRs play in driving economic growth, supporting local communities, and offering travelers flexible and affordable accommodation options.
Dispersing Tourism Benefits Beyond Urban Centers
More than 55% of short-term rental stays occurred outside major cities, helping spread tourism's economic benefits beyond traditional hotspots. Rural destinations experienced particularly strong growth, with STR nights in these areas doubling since 2020 and largely exceeding the growth of other traditional accommodation options in these areas.
STRs not only allow travelers to explore less-traveled destinations but also make travel more affordable. Oxford Economics estimates that platforms like Airbnb have reduced the average cost of overnight stays—including hotels and STRs—by €7 across key European cities in 2023. This affordability is especially crucial during major events, such as the Paris 2024 Summer Olympics, when STRs helped ease pressure on lodging capacity and provided cost-effective options for visitors.
Flexible and Family-Friendly Travel Options
The study highlights a growing preference among Europeans for these flexible and affordable stays, with domestic travelers making up 67% of stays in 2023. Families, in particular, benefit from the perks of holiday rentals, with nearly four out of ten bookings made by travelers with children.
Minimal Impact on Housing
Contrary to common misconceptions, the study finds that STRs represent a small fraction of the housing stock in major cities like Lisbon, Barcelona, Madrid, Paris, Berlin, and Amsterdam—less than 0.5%. Even if all STR listings on platforms like Airbnb were returned to the residential market, local housing prices in these cities would fall by less than 0.7%.
The study also underscores the limited impact of STRs on housing availability. For example, in Paris, stringent regulations on secondary home rentals have failed to curb rising rents and property prices, which have increased by 21% and 15%, respectively, over the past six years. Similarly, in Amsterdam, strict rules limiting short-term rentals have coincided with a 12% increase in tourist stays, driven by hotels rather than STRs, alongside a 50% reduction in STR stays.
The Costs of Overregulation
Excessive regulations targeting short-term rentals have had unintended consequences, including economic losses for local hosts and businesses. For example, excessive STR regulations account for an estimated €269 million loss in Amsterdam-based host earnings, reducing income for everyday families. Meanwhile, in Paris, the average cost of a hotel stay has risen by 77% over six years, diminishing the ability of everyday Europeans and families to enjoy these destinations.
A Balanced Approach to Regulation
The findings suggest that well-targeted and evidence-based policies are better suited to address local housing and overtourism challenges without sacrificing the economic and social benefits STRs provide. Short-term rentals represent a vital part of Europe’s tourism ecosystem, enabling residents to travel affordably, dispersing economic benefits, and supporting sustainable tourism growth.
“By directing tourists away from crowded urban destinations where hotel supply, concentrated tourist flows and local challenges accumulate, short-term rentals have dispersed the benefits of tourism to local families and businesses in countless rural destinations. Short-term rentals are part of the solution to build a more sustainable tourism that preserves the right of residents in the European Union countries to live, host, and travel affordably across Europe.” – Juliette Langlais, EMEA Public Affairs Director at Airbnb.
For more on these findings, read the full report at news.airbnb.com.
Media Contacts:
Aurelien Perol | aurelien.perol@airbnb.com
Matthew Dass | mdass@oxfordeconomics.com