Short-term tourist rentals: Budapest city center passes first nationwide ban

Come January 1, 2026, the historic heart of Budapest is set to do some serious work. The 6th district, home to the famous Andrassy Avenue and the Opera House, will become the first region in Hungary to completely ban short-term tourist rentals. Basically, the switch flips overnight for Airbnb, Booking.com, and similar platforms.

It seemed like a basic move, but it wasn’t fun. Residents were directly asked to return in 2024 if they wanted the rent to go away. While the turnout was small, the majority voted yes. In late 2025, the Supreme Court confirmed that the result was legally binding, formalizing the ban on short-term tourist rentals.

A neighbor is pushed to the limit

If you look at the situation on the ground, the anger makes sense. In the city center alone, about 8% of all apartments are listed for short-term stays, which is much higher than in other European cities. Rents have risen more than 10% in just one year, effectively pricing out teachers, nurses, and young professionals. The people who live there are tired of the sound of suitcases being dropped at all hours, stag parties, and the loss of community. As the district mayor said, they prefer people who actually live there than those who just sleep there for a few nights.

A ban was made possible by national policy

Unfortunately, the national government helped set the stage for this. They raised taxes on short-term tourist rentals and gave individual districts the power to introduce their own restrictions. The district admits that this will mean a significant loss of tax revenue of around €750,000 a year, but they see it as an acceptable cost to help families find housing.

Joy, fear and accusations of communism

Reaction to news is complex. Local residents are celebrating, with online groups moving from noise complaints to champagne emojis. But it is hard for others. You have pensioners who rely on renting out spare rooms and small investors who bought flats for their retirement, now facing a crisis. Critics call it anti-market fanaticism and argue that tighter regulation would work better than a total ban.

An experience to behold

Budapest is really part of a big trend. Cities like Barcelona, ​​Berlin and Amsterdam are all tightening the screws on short-term tourist rentals to stop their historic centers from feeling like theme parks. Everyone is now watching District 6 to see if this experiment works. Will rents drop and peace come, or will tourists just move a few blocks? We are about to find out. Will other regions eventually take similar measures? One thing is for sure. On New Year’s Day 2026, thousands of Airbnb listings in the 6th district (city center) disappear almost immediately. It’s hard to say whether it will really bring back the spirit of one of Europe’s most beautiful neighborhoods or if it will just guide a parade of suitcases through a few streets. We will just have to wait and see.