About this Episode
Florence is expanding restrictions on short-term tourist rentals beyond its historic centre. New tourist rentals will be banned in nine additional neighbourhoods, while existing properties will require five-year permits.
The city says short-term rentals reduce housing available to residents, contribute to higher rents and accelerate the loss of permanent residents from central neighbourhoods. Florence has also banned external key lockboxes used by holiday apartments, with fines of up to €10,000 for violations.
Similar measures elsewhere suggest restrictions can help housing markets. A 2018 ban on new short-term rental licences in parts of Lisbon was linked to house-price declines of around 9 percent, while restrictions in Berlin pushed some professional Airbnb properties back onto the long-term rental market and slowed rent increases.
However, research suggests such measures are more effective at reducing tourist rentals than at reducing overtourism itself. Florence may therefore improve housing availability without significantly cutting visitor numbers or crowded streets.
Restricting short-term tourist rentals to improve residents’ quality of life – that’s what’s right with the world.
