Take Amsterdam for example.
A good decade ago, it was crowded in the tourism months (summer), but not too bad. Now it's crowded in the off season too, and during the summer months even more so, to the point where walking around is really hard.
The mayor seems to constantly want to get rid of cannabis, which won't solve the problem, the issue isn't the weed tourism... it's the unfettered tourism.
These things can be controlled, you can control how much tourists you have by limiting the amount of hotels you have in your city. But with AirBnB you lose all control on how many tourists.
The old wooden buildings where one could hear everything, people arriving and talking loudly in the stairwells then banging their suitcases up the stairs etc.
We left, couldn't deal wit it.
How much control is happening, no idea, probably none as usual.
You could also make laws to limit the number of properties per person, and if you're even smarter, you could use that in conjunction with a map of relationships between people, so you could limit the number of people putting listings in their family members names to get around any limitations.
AirBnB has the data to assist governments.
Airbnb will probably follow your law, but other platforms that do not will flourish. They will be difficult to regulate, given that they won't be in your jurisdiction.
> You could also make laws to limit the number of properties per person.
Many laws already exist that give unfavourable tax treatment to second and subsequent properties. They are widely avoided through family members and legal entity structures and a hand-wavy "map of relationships between people" isn't going to magically fix that. This would also have a fairly obvious negative effect: it would artificially limit supply in the rental market, driving up prices. A person who could have invested in multiple properties and supplied them to the rental market will instead supply at most one, and invest the rest of their money elsewhere.
There isn't some nefarious conspiracy preventing effective regulation in this area. It's just a legitimately hard problem.
At least that is how remember how bad it used to be.
What do you mean by "works"? Yes, grey markets will pop up, but if Portugal banned AirBnB style renting that the market for that housing wouldn't shrink?
It seems to me that prohibition might be a useful tool in a more comprehensive set of policies to address the problem.