This report published by Oxera in February 2026 is essential reading for all policymakers involved in decision-making regarding the regulation of tourist accommodation. It explains the key difference between correlation and causality in the context of the potential impact of short-term rentals on the housing market.
Go to the Oxera webpage with all deliverables ; read the full report or overview
Conclusions of the report :
As local authorities across the EU grapple with concerns around the growth of STRs, it is crucial that any measures are grounded in robust evidence and adhere to legal principles of necessity, causality, and proportionality.
This report has outlined methodologies to support policymakers in making informed decisions regarding STR measures. By applying robust economic analysis based on the relevant legal tests, authorities can assess whether restrictions are justified, establish causal links between STR activity and market failures, and evaluate the proportionality of different policy interventions.
A well-balanced approach to STR regulation should be evidence-based, targeted, and proportionate to the specific challenges faced by each jurisdiction. By leveraging the methodologies presented in this report, policymakers can craft measures that can suitably address public policy concerns while minimising unintended consequences. In balancing the opposing costs and benefits of a policy intervention, it is generally advisable to favour less-intrusive policy designs, where possible. Additionally, where data limitations hinder robust analysis, local authorities should determine what assessments are currently feasible and identify areas for further empirical analysis to strengthen future policymaking.
