Lisbon’s municipal assembly has taken a significant step towards addressing the city’s housing crisis by approving a proposal for a referendum aimed at ending short-term rentals in residential buildings. This move comes as the Portuguese capital grapples with soaring rents and a lack of affordable housing, prompting local residents to seek solutions through public voting.
Background of the Housing Crisis
Lisbon has experienced a dramatic increase in housing costs over the last decade, with rents more than doubling and property prices skyrocketing by 200%. This surge is largely attributed to a tourism boom that began in 2015, leading to a proliferation of short-term rentals. While this influx of tourists has bolstered the local economy, it has also strained the housing market, pushing many locals out of their homes.
The Movement for Change
The proposal for the referendum was spearheaded by the Movement for a Referendum on Housing, which successfully gathered over 5,000 signatures from residents.
Potential Impact of the Referendum
If the referendum is approved by the Constitutional Court and subsequently passes, it could lead to the elimination of approximately 20,000 short-term rentals in Lisbon and a move to phase out tourist rentals within six months.
This referendum could set a precedent for other European cities facing similar housing challenges, as many urban areas are grappling with the balance between tourism and local housing needs.
Opposition to the Proposal
Despite the support for the referendum, there is significant opposition from the short-term rental sector. The Association of Local Accommodation (ALEP) argues that the referendum lacks a legal basis and that it would not effectively resolve the housing crisis. Eduardo Miranda, head of ALEP, warned that such a move could lead to an economic crisis, jeopardizing over 40,000 jobs in the city.
Looking Ahead
As Lisbon prepares for this potential referendum, the outcome could have far-reaching implications for the city’s housing market and its tourism industry. The assembly’s decision marks a pivotal moment in the ongoing debate over how to manage the impact of short-term rentals on local communities. With the Constitutional Court’s approval pending, residents and stakeholders alike are watching closely to see how this situation unfolds in the coming months.
