This week’s roundup covers the EU’s Affordable Housing Act, changes to Google Vacation Rentals, AirDNA’s latest data on minimum nights, and a proposed vacation rental ban in Japan. Let’s dive in.
The European Commission officially proposed its Affordable Housing Act on Wednesday, which included a new framework for regulating short-term rentals. Under the proposal, officials seeking to introduce new vacation rental restrictions would need to identify a local housing problem, show that short-term rentals have made housing less affordable or harder to find for at least three years, and explain why less restrictive options would be less effective. Before any new rules take effect, authorities will also need to make the evidence behind the rule public, specify where the rules would apply, and state how long they would remain in place. While this new framework could lead to more restrictions, it would also give vacation rental operators a clearer path to challenge future restrictions. The proposal will now require agreement from EU countries and the European Parliament before it can become law.
On Tuesday, Google began removing its Vacation Rentals section from Search results for users in the European Economic Area (EEA) to comply with the Digital Markets Act. The move follows a €460 million fine imposed by the European Commission after it found that Google gave its own services better placement than competitors' in Search. The removed section displayed vacation rental listings, prices, and allowed travelers to click through to direct booking sites. The removal applies specifically to people searching from within the EEA. Travelers outside the EEA can still use the feature, including when searching for properties in Europe. Vacation rentals also remain eligible to appear on Google Maps and Google Hotels. Google says it hopes to bring the feature back to the EEA in the future.
AirDNA published an interesting article this week highlighting the importance of nightly minimums in a vacation rental pricing strategy. Using reservation data from 2025 across the 50 largest U.S. vacation rental markets, AirDNA found that there is no single “correct” nightly minimum, with guest booking patterns varying greatly by market, season, property size, and arrival day. AirDNA noted Myrtle Beach as a great example, with seven-night stays accounting for nearly 25% of reservations in June and July, compared with just 2% to 5% in January and February. As we transition from summer to fall, now is a great time for vacation rental operators to review their pricing strategies and evaluate minimum-stay trends in their specific markets.
Shinjuku, a popular tourist destination in Japan, announced plans on Tuesday to add new vacation rental restrictions following a steady increase in complaints from local residents. The proposed changes would largely ban vacation rentals in residential areas and near schools, affecting more than half of Shinjuku’s vacation rental supply, roughly 4,000. Currently, vacation rentals in commercial areas would still be allowed, but the annual limit would be reduced from 180 to 120 days. The changes have not yet been finalized, and Shinjuku plans to gather public comments before moving forward with the revised ordinance.
As governments consider new vacation rental restrictions and OTAs are forced to make changes, the vacation rental industry continues to shift this month. Check back next week for the latest news!