Understanding Short-Term Rental Regulation: A Case Study of Lisbon (Portugal)

Notwithstanding the positive impacts of short-term rentals (STRs), it is often their negative effects that have been raising pressing questions for urban planners and public policy-makers, including changes in housing dynamics, conflicts between residents and visitors, tourism gentrification phenomena, unfair competition practices, and tax evasion, among other externalities. Because of this, short-term rental regulation has become an important item on the political agenda of municipalities that live daily with these issues. In order to contribute to a better understanding of STR regulatory approaches, this paper investigates how Lisbon (Portugal) has been responding to the effects attributed to STRs. It can be concluded that the main negative impact of STR in Lisbon is its effects on the housing prices increase and that the main STR regulation measure is focused on zoning: definition of zones for the application of differentiated STR rules and management.