Budapest is gearing up for a landmark move that could reshape its tourism model. From 1 January 2026, the city’s 6th district plans to introduce Hungary’s first full ban on short-term rentals, targeting platforms such as Airbnb. Supporters say it is the only way to protect residents and tackle a mounting housing crisis; critics warn it will hurt the local economy without making homes meaningfully cheaper.
A tourist hotspot turns into a test case
The 6th district is one of Budapest’s most central and recognisable areas. It includes Andrássy Avenue, the Hungarian State Opera, theatres, museums and streets packed with cafés and bars. It is also one of the most saturated districts for Airbnb: around 8% of the local housing stock is used for short-term rentals, and in some buildings, up to half the flats are let to tourists.
District mayor Tamás Soproni argues that the balance between visitors and residents has been lost:
“In some buildings, 50% of apartments are on Airbnb. Locals are being pushed out of the city centre and replaced by tourists – that’s unacceptable.”
In 2024, the district held an online vote. Turnout was low at around 20.5%, but 54% of participants backed a full ban on short-term rentals. On 11 November, Hungary’s Supreme Court cleared the way for the measure, allowing it to come into force at the start of 2026.
If implemented as planned, the 6th district will become the first area in Hungary to completely shut down the Airbnb market.
Tourism boom – and a runaway rental market
The decision comes against the backdrop of a tourism boom. In 2024, Hungary welcomed more than 18 million visitors, almost 6 million of whom came to Budapest. Arrivals grew by about 24% year-on-year, and tourism now accounts for an estimated 13% of the country’s GDP.
Short-term rentals have been the fastest-growing segment:
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between 2020 and 2024, their number in Budapest increased by about 80%
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there are now more Airbnb listings than hotel rooms in the city
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roughly 40% of tourist nights are spent in Airbnbs, compared with a European average of around 28%
For visitors, the formula looks perfect: ruin bars, nightlife districts, outdoor terraces, relatively low prices and a wide choice of accommodation. For many residents, it has meant sleepless nights, overflowing rubbish bins, drunken parties and a revolving door of strangers living next door.
National government tightens rules, local council goes further
Hungary’s central government has acknowledged that unrestrained growth in short-term rentals creates problems, but it also benefits from the sector’s tax revenues. In 2024 it:
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quadrupled taxes and fees on Airbnb-style rentals
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imposed a two-year moratorium on registering new properties
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gave Budapest districts powers to introduce additional rules, such as caps on the number of rental days per year
The 6th district has chosen the most radical option on the menu: a full ban.
Hosts fear for their livelihood
For many local hosts, the move feels like a rug pulled from under their feet.
Nóra Szuveges, a former ballerina with the Hungarian State Opera, now relies on two small flats in the district as her main source of income:
“At first it was just extra money. Then, when I left the stage, it became what I lived on. I invested in renovations, followed every rule, paid all my taxes – and now I feel as if the ground has been taken away from under me.”
She is considering switching to long-term rentals but says her experience during the Covid-19 pandemic made her wary:
“When there were no tourists, I had long-term tenants. That’s when I had real problems – damage, mess, conflict. Airbnb guests come and go and tend to be careful. Long-term tenants can do far more harm.”
Szuveges doubts that banning Airbnb will fix Budapest’s housing issues. Rents rose by more than 10% in 2024, and although growth may slow, the Hungarian capital is still catching up with Warsaw, Prague and especially Vienna in terms of prices.
“Only losers”: owners warn of economic damage
Balázs Shumicky, president of an association representing short-term rental owners, is one of the most outspoken critics of the ban. He argues that the 6th district stands to lose significant revenue:
“The district earns around 1 billion forints – about €2.6 million – from taxes and fees we pay. That’s a huge sum to just throw away.”
Shumicky calls the measure anti-market and disproportionate:
“Taking away people’s ability to rent out their homes as they see fit is a step backwards. At what point do we start talking about confiscation?”
He says the real problems stem from illegal, unregistered Airbnbs that operate without paying taxes or respecting basic rules. Legal hosts, he insists, are strongly motivated to keep peace with neighbours and maintain quiet buildings.
As an example of a different approach, he points to Barcelona, where residents can call a dedicated 24-hour hotline to report nuisance properties. Noise sensors installed in some flats warn guests automatically when levels become excessive. Street noise and public order issues, he adds, should be handled by police and city services, not by banning an entire industry.
Ironically, Barcelona is itself moving towards a total phase-out of short-term lets by November 2028.
Mayor bets on slower price growth and a more “normal” middle class
Mayor Soproni, who comes from the liberal Momentum party, says he is ready to take the political risk. He believes the financial impact on the district’s budget will be manageable, estimating lost revenues at around 300 million forints.
He also argues that the first effects are already visible:
“Since we announced the ban, demand for homes in the district has gone up, but prices have risen by only around 7%. In neighbouring districts, the increase is 15–18%. So we are at least slowing down speculative growth.”
Soproni says his goal is to make the 6th district affordable again for what he calls “a real middle class” – teachers, mid-ranking police officers and young professionals, not only wealthy investors.
DIP explains: how cities worldwide are pushing back against Airbnb
Budapest’s experiment is part of a broader global backlash against short-term rental platforms, as cities search for ways to balance tourism with residents’ rights.
Why cities are restricting Airbnb and similar platforms:
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Rising housing costs. Homes that could house local residents are converted into de-facto hotel rooms, reducing supply and pushing up both rents and sale prices.
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Housing shortages. In high-demand areas, locals struggle to find long-term rentals at any reasonable cost.
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Neighbourhood “touristification”. Historic or residential districts morph into quasi-hotel zones, with bars and souvenir shops replacing everyday services.
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Quality-of-life concerns. Noise, litter, late-night parties and a constant churn of visitors strain relations between residents and hosts.
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Uneven playing field for hotels. Traditional accommodation providers comply with stringent safety and tax rules, while many short-term rentals operated for years in a regulatory grey zone.
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Enforcement challenges. City authorities often lack reliable data on how many properties are being rented out, where they are and whether they comply with basic standards.
The tools cities are using:
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Outright or area-specific bans. Some cities, such as parts of Berlin or now Budapest’s 6th district, bar short-term lets in certain zones, while Barcelona plans a full phase-out.
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Caps on rental days. Paris limits most primary homes to 120 rental days per year; Amsterdam has cut that to around 30 days in many cases.
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Licensing and registration. Hosts must obtain permits, display registration numbers on platforms and face fines if they fail to comply.
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Higher taxes and tourist levies. Increased charges are used to level the playing field with hotels and compensate for pressure on local infrastructure.
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Stepped-up enforcement and penalties. Cities introduce substantial fines and inspections targeting illegal listings and repeat offenders.
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Safety requirements. Fire alarms, evacuation plans and liability insurance are increasingly standard for legal listings.
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Complaint hotlines for residents. Neighbours can report disturbances directly, triggering investigations and, in some cases, licence revocation.
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Data-sharing deals with platforms. Some municipalities work with Airbnb and others to access listing data, collect taxes automatically and flag illegal rentals.
Examples of cities taking tough action:
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Barcelona, Spain – planning to end all short-term tourist rentals by 2028.
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Paris, France – strict day limits and mandatory registration.
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Amsterdam, Netherlands – sharply reduced caps and no-Airbnb zones.
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Berlin, Germany – bans most whole-home rentals without special permits.
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New York City, USA – introduced rules in 2023 that effectively prohibit stays under 30 days in most cases.
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Tokyo, Japan – enforces tight licensing rules and restricts where rentals are allowed.
As Budapest’s 6th district moves towards its own Airbnb ban, other European cities will be watching closely to see whether it truly delivers more affordable housing – or simply shifts tourism and pressure onto neighbouring areas.