Sardinia caught in Europe's short-term rental squeeze

Sardinia is caught in a widening European crisis: the boom in short-term holiday rentals is pricing out residents and straining local housing markets. The Local Italy reported this week that several Italian cities are imposing new restrictions on Airbnb and similar platforms, creating a complex rulebook that affects both property owners and visitors planning summer stays. Sardinia's coastal tourism—particularly around the Costa Smeralda and other high-demand destinations—has long relied on seasonal rentals, but the scale of recent growth has begun to trigger the same backlash seen in Spain, Portugal, and Greece.

The island's housing crisis carries a particular sting. Unlike mainland urban centres, Sardinia's interior has faced decades of depopulation as young people migrate to the north or abroad. Those who remain in small towns and villages now compete for housing with wealthy mainlanders and foreign investors seeking summer properties or rental assets. The rental restrictions, while intended to protect affordability, create winners and losers: locals may regain access to housing stock, but property owners who depend on short-term income face reduced revenue and uncertainty about future bookings.