(Bloomberg) -- A Hungarian plan to restrict short-term rentals will be focused on Budapest, with the aim of easing a housing crisis in the capital.
Rental costs have soared in Budapest in part due the prevalence of short-term accommodations such as those advertised on Airbnb Inc. and Booking Holdings Inc. That has had a cascading effect on property prices, which almost quadrupled over the past decade in the capital.
“The government sees a review of Airbnb rules as a priority for housing,” the Economy Ministry said Monday. “Hence the government only wants to tighten short-term rental rules in Budapest.”
The ministry statement came in response to an open letter from 26 domestic tourism organizations urging Prime Minister Viktor Orban’s government to tread carefully in a sector that’s become one of the main drivers of economic growth.
Residents of the capital’s central sixth district, one of the most popular areas for tourists, last month backed a total ban of Airbnb from 2026, following years of complaints about noise, trash and rental cost increases. The district’s mayor has pledged to pass legislation by the end of the year in line with the result of the local referendum.
As a first step, Hungary’s tourism organizations urged the government to impose a moratorium on short-term rental licenses in Budapest until 2026. They also asked that any further restrictive measures be passed only after an in-depth review of their impact and in consultation with stakeholders.
©2024 Bloomberg L.P.
