Report by Alesia Ahmetaj

Ever since short-term rentals like Airbnb became popular, people have been arguing about whether they are good or bad for cities. On one hand, these rentals bring tourists and help local economies. On the other hand, they can make it harder for people to find places to live and can change the character of neighbourhoods. This tension made me wonder why two cities that are so similar—Vienna, where I study, and Athens, which has always felt like a second home to me—have such different laws for short-term rentals. So, for my bachelor’s thesis, I set out to understand what political goals are behind these different approaches.

To answer this question, I came up with three possible reasons why cities might regulate short-term rentals. The first idea was that city governments want to prevent housing shortages and protect neighbourhoods from being overwhelmed by tourists. The second was that they want to make sure hotels and short-term rentals compete fairly, so traditional businesses are not driven out. And the third was that governments want to collect taxes properly and make sure they do not lose revenue from this new kind of business.

To test these ideas, I compared laws, regulations, and official documents from both cities. I also looked at data from online platforms and read expert opinions. It turned out that the strongest reason for regulation in both Vienna and Athens is taxation. Even though Vienna talks about urban planning and protecting housing, it still puts a big focus on making sure people pay the right taxes. Athens, meanwhile, almost entirely focuses on collecting taxes and says very little about housing problems. This was clear from the legal texts, government statements, and the way enforcement is designed in both places.

I believe my findings could help policymakers think more deeply about what they really want to achieve with short-term rental laws. If cities only focus on collecting taxes, they might miss the chance to protect housing for local people and keep neighbourhoods vibrant and diverse. By learning from each other, cities like Vienna and Athens could create fairer rules that balance tourism’s benefits with the needs of residents. I hope my thesis inspires more thoughtful policies that help cities stay liveable and welcoming, for both visitors and the people who call them home.

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