EU Affordable Housing Act proposed on 9 Sep 2026: how ‘housing‑stress’ zones could reshape German STR and non‑primary‑use rules in 2027

What was proposed on 9 September 2026

On 9 September 2026, the European Commission tabled the “Affordable Housing Act” as a draft EU Regulation (COM(2026) 599; procedure 2026/0268(COD)). The package also includes a Commission Recommendation on boosting affordable, social and student housing supply. The stated aim is not to harmonise housing policy, but to create a common EU framework for assessing and justifying certain local measures that protect housing affordability and availability in places under the greatest pressure. The proposal now moves through the ordinary legislative procedure in Parliament and Council in late 2026 and 2027.

The Act sits alongside Regulation (EU) 2024/1028 on data collection and sharing for short‑term accommodation rental platforms, which has applied across the EU since 20 May 2026. The new proposal would clarify when measures targeting short‑term rentals (STR) and measures restricting acquisition or use of dwellings that are not a primary residence can comply with EU internal‑market law, provided they are necessary, proportionate and time‑limited in areas facing documented “housing stress.”

How ‘housing‑stress’ zones would be identified

The proposal defines an “area under housing stress” as a clearly delimited sub‑national area where a mismatch between housing supply and demand puts observable pressure on the market. Authorities must apply a common test before adopting measures:

- Price‑to‑income ratio at or above 8, and rising over the latest 10 years of available data; or at or above 10 (in which case the “rising” condition does not apply), and - Evidence that, absent the measure, housing stress is unlikely to ease over the next three years, based on demographics, housing supply and demand.

The Commission provides an annexed methodology and datasets for calculating the price‑to‑income ratio; Member States may use more granular local data if they can demonstrate consistency with the thresholds. The territorial scope must be no larger than necessary and may be a district, municipality, metro area, functional urban area or part thereof.

What measures the EU framework would cover—and require

If an area meets the housing‑stress test, competent authorities may adopt two types of measures, subject to EU conditions:

- Measures restricting access to, or provision of, short‑term accommodation rental services in residential property—but only for accommodation that is not the host’s primary residence. - Measures restricting the acquisition or use of land and residential property that is not acquired or used as a primary residence (for example, rules addressing second homes or long‑term vacancy).

In both cases, measures must be non‑discriminatory, necessary and proportionate, targeted to the affected area (and to the commercial‑scale STR activity most likely to reduce long‑term housing), include appropriate transitional arrangements if they affect existing lawful situations, and be adopted for no more than five years before mandatory review. For STR‑related measures, local enforcement of Regulation (EU) 2024/1028—registration numbers, verification, platform data‑sharing, and takedown of illegal listings—is expected in the same area.

The draft Regulation does not itself create any new EU right to restrict ownership, use or STR, nor does it mandate rent caps. It clarifies the legal pathway for Member States, regions and cities to justify local rules under internal‑market law and the Services Directive case law, reducing uncertainty (for example, by replacing certain prior notification obligations under Article 15(7) of the Services Directive for STR‑related measures).

What this could mean in Germany

Germany already uses two relevant toolkits under national law: (i) state and municipal “Zweckentfremdung” rules that require permits and can cap or ban whole‑home STR in defined areas, and (ii) rent‑regulation instruments that apply in state‑designated “tense housing markets” (for example, § 556d BGB—Mietpreisbremse—limiting initial rents to no more than 10% above the local reference rent where an ordinance declares the area tense). The Court of Justice has previously accepted that authorisation schemes for STR can be justified by combating rental‑housing shortages if proportionate.

The EU proposal would not amend § 556d BGB or national rent law. Instead, it could make local STR and non‑primary‑use rules more litigation‑proof where a Land or city can demonstrate housing stress using the EU test and where measures meet the necessity and proportionality requirements. Importantly for STR, the EU framework only covers accommodation that is not a host’s primary residence. Expect German authorities to rely on platform data under Regulation (EU) 2024/1028 (applicable since 20 May 2026) to evidence the required “significant adverse effect” over the preceding three years when adopting new STR restrictions.

For non‑primary residences, the framework could support local rules aimed at second homes or long‑term vacancy in stress zones, provided they are non‑discriminatory (no targeting by nationality or Member State of establishment), time‑limited and objectively justified. Whether a Land introduces such rules is a political choice and would require alignment with German constitutional and civil law. Seek advice from a Fachanwalt für Miet‑ und Wohnungseigentumsrecht or public‑law counsel before transacting on an STR‑focused or second‑home strategy in a city likely to qualify as a stress zone.

What to watch in 2027

- EU law‑making: Track Parliament and Council negotiations on COM(2026) 599. Watch for any changes to the price‑to‑income thresholds (currently 8 and 10) via the delegated‑act power, and for how strictly the five‑year duration and review rule is kept in the final text. - German designation practice: If adopted, expect Länder and cities to decide whether to identify “housing‑stress” areas using the Commission dataset and local evidence. Expect publication of the required assessments, territorial scope and duration before measures enter into force. - STR enforcement: Platforms must already share activity data under Regulation (EU) 2024/1028. Municipal STR registers and takedowns of listings without valid registration numbers should be visible to operators, and new STR caps are more likely to pass EU tests if targeted at commercial‑scale entire‑home letting in non‑primary residences. - Non‑primary‑use levers: In high‑pressure zones, proposals could include second‑home rules or vacancy measures calibrated by objective criteria. Any price‑control ideas on long‑term rents would remain a matter of German law (for example, § 556d BGB) rather than the EU proposal. - Litigation risk: The framework creates procedural safeguards and effective judicial review. Expect challenges if authorities skip the evidence‑gathering or fail to show that less‑restrictive options are insufficient within a reasonable period.

Practical notes for foreign buyers and landlords

- Primary residence carve‑out: The EU framework for STR applies only to properties that are not the host’s primary residence. Home‑sharing in your own primary home is outside this Regulation’s scope, though it can still be regulated by other local rules. - Time limits and reviews: STR and non‑primary‑use measures in stress zones must be time‑limited (up to five years) and periodically reviewed. Business plans should model re‑authorisation risk every five years. - Evidence burden: Before adopting restrictions, authorities must show a “significant adverse effect” of STR or non‑primary use on affordability or availability over at least the preceding three years, using platform data and local statistics. If evidence is weak, investors can expect legal challenges. - No EU rent caps: Rent‑price rules in Germany continue to rest on national law (for example, § 556d BGB). The EU proposal does not create any new EU‑level power to cap long‑term rents. - Get local legal advice: For acquisitions aimed at STR or second‑home use, instruct German counsel familiar with Zweckentfremdung, municipal statutes and litigation under the Services Directive/CJEU case law. Notaries can advise on local disclosure, registration and permitting traps.