This week’s roundup covers Lisbon reversing course on short-term rental restrictions, the Spanish government fining Airbnb, Maui finalizing its vacation rental phase-out after months of debate, and Anchorage voting down a proposed vacation rental tax. Let’s dive in.
Lisbon has recently rolled back tightened short-term rental restrictions after city officials determined that the rules failed to reduce housing costs or improve overall affordability. Airbnb welcomed the decision this week, saying the policies limited hosting opportunities for residents without addressing the city’s underlying housing challenges. According to Airbnb, since Lisbon began imposing restrictions in 2019, the annual growth rate of home prices in the Lisbon Metropolitan Area has nearly doubled, while annual rent increases accelerated from 5.7 percent to 9.2 percent. Over the same period, hotel prices climbed sharply, rising by 30 percent between 2022 and 2024 alone. Under the revised policy, short-term rentals will be allowed to increase from 5 percent to 10 percent of the local housing supply as the city looks to better balance housing needs with tourism demand.
The Spanish government has fined Airbnb 64 million euros, or about $75 million, after regulators said the platform advertised a large number of short-term rentals without valid licenses or accurate registration information. Officials said some of the affected listings also included properties in popular tourist destinations that were banned from being rented altogether. An Airbnb spokesperson said the company has been working in collaboration with the Spanish government since new short-term rental rules took effect in July and plans to challenge the decision in court, despite the Consumer Affairs Ministry stating that the fine cannot be appealed.
In continued coverage of Maui County’s vacation rental phase-out, previously reported in Industry News on June 6th, June 13th, July 4th, August 1st, August 29th, and October 17th, Bill 9 has now been officially signed into law by Mayor Richard Bissen following final approval by the Maui County Council. This hotly debated decision will phase out thousands of vacation rentals in apartment-zoned districts, starting in West Maui in 2028 and expanding countywide by 2030. Supporters argue that the law will reintroduce housing units to the long-term market, making things more affordable. At the same time, opponents continue to raise concerns about property rights, real economic impacts, and potential legal challenges. With implementation still several years away, uncertainty remains around how the law will ultimately reshape Maui’s vacation rental market.
The Anchorage Assembly in Alaska voted this week not to advance a vacation rental-specific tax to voters as a ballot measure. The proposed five percent tax on short-term rentals was introduced in September and would have been added to the existing 12 percent room tax that already applies to hotels and short-term rentals. A majority of Assembly members said it was not the right time to pursue an additional tax. While the proposal was rejected, the Assembly approved a separate ordinance requiring short-term rental owners to register their properties with the city, which officials say will improve tracking and help inform future policy decisions.
As governments continue to revisit and refine short-term rental restrictions, the vacation rental landscape continues to evolve. Check back next week for the latest news.