Come January 1, 2026, the historic heart of Budapest is set to do something drastic. The 6th district, home to the famous Andrássy Avenue and the Opera House, will become the first area in Hungary to completely ban short-term tourist rentals. Basically, the switch is being flipped off for Airbnb, Booking, and similar platforms overnight.
It sounds like a radical move, but it didn't happen on a whim. Residents were asked directly back in 2024 if they wanted these rentals gone. While turnout was modest, the majority voted yes. By late 2025, the Supreme Court confirmed the result was legally binding, making the ban on short-term tourist rentals official.
A Neighborhood 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 huge compared to other European cities. Rents shot up by more than 10% in just one year, effectively pricing out teachers, nurses, and young professionals. People living there are tired of the sound of wheeled suitcases at all hours, the stag parties, and the loss of community. As the district mayor put it, they are choosing the people who actually live there over those who just sleep there for a few nights.
A Ban Made Possible by National Policy
Ironically, 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 bans. The district admits it will lose a significant chunk of tax revenue, about 750,000 euros a year, but they view that as an acceptable cost to help families find homes again.
Joy, Fear, and Accusations of Communism
The reaction to the news is complicated. Local residents are celebrating, with online groups shifting from noise complaints to champagne emojis. But it is harder for others. You have pensioners who relied on renting out spare rooms and small investors who bought flats for their retirement, now facing a crisis. Critics call it anti-market madness, arguing that strict regulations would work better than a total ban.
An Experiment to Watch
Budapest is really just part of a bigger 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 watching the 6th district now to see if this experiment works. Will rents go down and peace return, or will the tourists just move a few blocks over? We are about to find out. Will other areas eventually adopt similar measures? One thing is for sure. On New Year's Day 2026, thousands of Airbnb listings in the 6th district (the city center) are going to vanish almost instantly. It is hard to say if that will truly restore the soul of one of Europe's most beautiful neighborhoods or if it will just redirect the parade of suitcases a few streets over. We will just have to wait and see.
