Residents of the Sixth District in Budapest voted to ban short-term rentals in a referendum that closed on September 15, a move that could set a precedent for future regulation as the government is considering a nationwide ban on Airbnb-style accommodations.

Turnout at the referendum, which began on September 2, was low as only 20% of eligible voters cast votes. The final results show that 3,265 voted for the ban (54%), and 2,818 against it. Homeowners will have over a year of grace period as the regulation will enter into force on January 2026.

Lawmakers earlier gave municipal governments a mandate to limit homestays to several days per year. As a limit of 60, 75, or 130 days cannot be legally enforced, residents of the district were asked whether "Airbnb-type rentals" should be banned, the local government said.

Private tourism accommodations represent around 8% of all homes, or 2,226 properties, operate in the Sixth District, which includes Andrassy Avenue, a Unesco World Heritage site. In the most frequented areas, this proportion is as high as 40%.

In the last 10-15 years, this part of the city has become known as the "party district", with a bustling nightlife, full of bars, clubs, and restaurants, drawing tens of thousands of young, budget travellers. Budapest gained a reputation for "ruin pubs", which are bars housed in abandoned or dilapidated buildings, which added a unique, eclectic vibe to the nightlife scene.

The referendum has sparked discussions about the future of short-term home rentals. After the vote, Alexandra Szentkiralyi, the head of ruling Fidesz's Budapest chapter, signalled that she would recommend the government to impose a national ban.

Proponents of the ban argue that the restrictions will help alleviate rising rents and housing shortages, and potentially stabilise or lower rent prices in the city centre. Opponents warned of the negative economic impacts, such as the effect on tourism and a shortfall in revenue for the local government.  

The association that groups Airbnb service providers said tourists may choose alternative destinations like Prague or Kraków if they can no longer find short-term rental options in Budapest, potentially harming the city's competitiveness. They countered that homeowners, those with a large stock of property, could circumvent the regulation by forming hostels and argued that few homes would enter the rental market, hence it will have little impact on rent prices. 

According to fresh data from real estate brokerage Duna House, the average home price per sqm had dropped from HUF1.45mn (€3,680) to HUF1.43mn in the Sixth District since the referendum began.

The monthly rental rate for a flat in the capital averaged HUF 250,000 in H1, but in most frequented central districts this goes up to HUF350,000-400,000, which equals the net median wage.