Discover the Impact of Budapest's Short-Term Rental Referendum on Housing Prices and Quality of Life
By Krisztina Fenyo and Gergely Szakacs
A Budapest district is currently holding a two-week referendum on a potential ban on short-term rentals, marking a significant move in one of Europe's top tourist destinations.
Last year, Eurostat data revealed that nearly 719 million guest nights in the European Union were booked through online platforms like Airbnb, Booking, Expedia Group, and Tripadvisor. Among EU capitals, Paris led with over 19 million guest nights, while Budapest emerged as the most popular central European city for short-term stays, recording 6.7 million guest nights.
The mayor of the Budapest district overseeing the referendum, Tamas Soproni, emphasized the importance of addressing the impact of short-term rentals on housing affordability and quality of life. The vote, which began on Monday and will conclude on Sept. 15, aims to gauge local sentiment on this issue.
If the ban is approved, it will come into effect starting 2026. This decision could have broader implications, as Prime Minister Viktor Orban's government considers regulating short-term rentals to alleviate housing shortages and high prices.
An analysis by real estate website ingatlan.com suggested that a ban in the sixth district, where apartment prices are 22% higher than the Budapest average, could temporarily reduce long-term rental prices.
Opponents of the ban argue that it could negatively impact not only apartment hosts but also nearby businesses, such as cafes and restaurants that cater to foreign tourists. Similarly, Barcelona recently announced plans to prohibit apartment rentals to tourists by 2028 to address rising housing costs and enhance livability for residents.
In central Europe, the Czech Regional Development Ministry has proposed a legal amendment requiring all properties listed on online platforms to be registered for tax purposes. This initiative, set to take effect in mid-2026 pending parliamentary approval, would also empower municipalities to impose restrictions on rental periods.
While calls for tighter regulations on holiday rentals have surfaced in popular tourist spots like Poland's Sopot and Krakow, concrete measures have yet to be implemented.
Residents in Budapest's sixth district expressed mixed opinions on the matter. Some, like Gabor Siklosi, advocate for stricter regulations but not an outright ban, while others, like Matild, voiced concerns over the disruptive nature of short-term rentals.
As the debate unfolds, it's crucial for investors and residents alike to monitor the referendum's outcome and its potential impact on housing prices and local businesses. Understanding these developments can help individuals make informed decisions regarding their investments and daily lives.