Background: Short-term rental (STR) platforms such as Airbnb, Vrbo, and Booking.com have transformed urban tourism. While they increase accommodation diversity and local income, they also accelerate housing shortages, inflate rents, commodify neighborhoods, and intensify resident–tourist tensions.

Objective: This study examines urban STR regulations, evaluates their effectiveness, and analyzes community perceptions toward STR proliferation in three global cities: Barcelona, New York City, and Bangkok.

Methods: A comparative policy analysis was conducted using municipal records, 40 stakeholder interviews (residents, policymakers, hosts), and Airbnb dataset scraping (n = 6,200 listings). Regulatory mechanisms were categorized using the Policy Tool Framework (taxation, zoning, licensing, enforcement, digital monitoring).

Results: STR proliferation reduces long-term housing supply (−12% to −23% across cities), increases rent (up to +35%), and increases commercial gentrification. Barcelona’s strict licensing system significantly reduced illegal STRs. New York City's data-sharing laws improved enforcement. Bangkok, with relaxed rules, witnessed rapid STR growth leading to housing pressures and informal operations.

Conclusion: Effective STR governance requires integrated regulatory frameworks combining licensing, data-sharing agreements, neighborhood caps, and community participation. Without regulation, STRs intensify housing crises and destabilize urban communities.