Investing.com -- Airbnb and other short-term rental companies will face new restrictions under a European Union proposal aimed at addressing affordable housing shortages in tourist destinations.

The EU plans to create uniform rules across Europe following individual crackdowns by cities including Paris, Barcelona and Venice. European Commission Vice-President Teresa Ribera will present the Affordable Housing Act on September 9. The proposal must then be reviewed by EU countries and the European Parliament before becoming law.

The draft legislation establishes criteria for determining when housing shortages justify limits on short-term rentals. Authorities must evaluate housing stress using the price-to-income ratio and its changes over time, along with other indicators showing whether housing pressure will continue.

The price-to-income ratio compares the cost of buying a home with household earnings, according to the draft. Officials must also examine population growth and housing supply and demand patterns.

The proposal states that any restrictions must be non-discriminatory, proportionate and serve the public interest. In areas experiencing housing shortages, quantitative limits or grandfathering rules may be more suitable than complete bans on property acquisitions or usage.