Amsterdam, Barcelona, Berlin And More Set The Stage For Hungary’s Groundbreaking Move As Budapest Bans Short-Term Rentals To Protect Affordable Housing And Preserve Neighborhoods

Published on December 1, 2025

Budapest is set to join the ranks of cities like Amsterdam, Barcelona, and Berlin by implementing a landmark ban on short-term rentals. This bold move aims to protect local communities from the adverse effects of overtourism, where rising rental prices and the loss of neighborhood identity have become significant issues. With the ban, Budapest seeks to restore affordable housing for residents and bring back a sense of stability to its historic districts, ensuring the city remains a place for locals to live and thrive.

On January 1, 2026, Budapest will make a bold move in the fight against overtourism, as the city’s historic 6th district becomes the first area in Hungary to implement a full ban on short-term tourist rentals. This includes major platforms like Airbnb, Booking.com, and others, effectively shutting down all such rentals overnight. While this decision may seem drastic, it comes after years of growing frustration from residents and a series of policy shifts that set the stage for this momentous change.

In 2024, city officials took the step of directly consulting residents about whether they wanted to prohibit short-term rentals in their neighborhood. The response was overwhelming—though turnout was not high, the majority voted in favor of the ban. By the end of 2025, Hungary’s Supreme Court confirmed the result as legally binding, sealing the fate of short-term rentals in the 6th district. Starting in January 2026, tourists will no longer find available apartments for a few days on sites like Airbnb in one of Budapest’s most coveted neighborhoods.

The move comes after years of escalating tensions between the tourism sector and local residents. In the 6th district, which is home to iconic landmarks like Andrássy Avenue and the Opera House, approximately 8% of all apartments were listed as short-term rentals. This is a staggering number compared to other European cities, and it quickly contributed to a host of problems, including surging rents and a decline in the community feel of the area. Within a single year, rental prices increased by over 10%, pricing out essential workers such as teachers, nurses, and young professionals. This rising cost of living became a source of deep resentment, with locals pointing to the influx of tourists as one of the key reasons behind the spike.

The frustration is understandable when considering the daily disruptions to life in the district—constant noise from suitcases being dragged across cobblestones, late-night partygoers, and the overall lack of a settled neighborhood atmosphere. As the district’s mayor put it, this decision is about prioritizing the people who live there over transient visitors who only stay for a few nights. It’s a move to restore balance to a community that was increasingly overwhelmed by the commercial side of tourism.

Interestingly, the national government played a role in facilitating this ban. In recent years, Hungary raised taxes on short-term rentals and granted local districts the autonomy to impose their own bans on such accommodations. While this policy shift allowed districts to take action based on their unique needs, it also meant a loss in tax revenue, which the 6th district is bracing for. The expected loss is significant—around 750,000 euros per year—but for local leaders, the cost is deemed acceptable if it means families can find affordable housing once more.

The reaction to the ban is a mixture of celebration and concern. Many residents are cheering the change, with online forums filled with posts expressing relief and even excitement. No longer will they have to contend with the constant turnover of visitors and the disruption to their daily lives. Some have even turned to emojis and celebratory comments to mark the occasion. However, for others, the ban represents a serious challenge. Pensioners who had relied on renting out rooms for extra income are facing a loss of financial stability. Similarly, small investors who bought apartments as a retirement investment are now grappling with the financial fallout. Critics of the ban argue that there are more balanced alternatives, such as stricter regulations on short-term rentals, rather than an outright ban.

The situation in Budapest’s 6th district is just one example of a growing movement across European cities to tackle the issue of short-term rentals. Cities like Barcelona, Berlin, and Amsterdam have all taken steps to regulate or limit such accommodations, seeking to preserve the cultural identity and livability of their historic centers. These actions reflect a broader desire to protect local communities from being overtaken by a wave of tourism that can turn neighborhoods into glorified hotel zones.

What happens in Budapest in the next few months will be closely watched as a test case for other cities grappling with similar issues. Will rents go down and the district’s atmosphere return to one of peaceful local living, or will tourists simply relocate to other parts of the city? And, perhaps more importantly, will this move help other districts or cities decide to follow suit? There are no clear answers yet, but Budapest’s decision is a bold experiment that could set the tone for future policy in other European destinations.

As the clock strikes midnight on January 1, 2026, thousands of Airbnb listings in Budapest’s 6th district will vanish, leaving behind empty spaces that were once bustling with tourists. Whether this will truly restore the area’s sense of community, or if the impact will be short-lived, remains to be seen. The success of this experiment could signal a shift in how cities worldwide approach short-term rentals, and for Budapest, it marks a pivotal moment in the ongoing struggle to balance tourism and local life.