Short term rental regulations in Vienna – enforcement versus deterrence?

Cities worldwide are introducing regulations for short-term rentals (STRs). Vienna, an early adopter, revised its rules in July 2024 to restrict professional STR operations while permitting home-sharing. Using a mixed-method approach, utilising difference-in-difference methods and semi-structured Interviews with suppliers and regulators, we assess the reform’s effects. Although we find a slight decline in STR listings, it cannot be clearly attributed to the reform, nor do we observe increased long-term rental supply. Limited effects appear likely due to enforcement challenges and insufficient administrative resources. Nonetheless, that regulatory uncertainty may deter STR supply but risks discouraging compliance among otherwise lawful operators.