(Bloomberg) -- One of Budapest’s most touristic districts has voted in a referendum to ban short-term rentals after a surge in housing costs and com

Touristic Budapest District Votes to Ban Airbnb-Style Rentals

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2024-09-16 19:00:06

(Bloomberg) -- One of Budapest’s most touristic districts has voted in a referendum to ban short-term rentals after a surge in housing costs and complaints about noise and trash by its residents.

The Hungarian capital’s sixth district is one of the most popular areas for Airbnb and similar housing, with over 2,200 such rentals, according to the municipality. In a two-week long plebiscite, 54% of residents voted to prohibit them, according to results announced early Monday.

Following Monday’s vote, Mayor Tamas Soproni pledged to submit legislation banning short-term rentals from 2026 in the area, which is known for its nightlife and for Andrassy avenue, Budapest’s grand boulevard that’s lined with 19th century villas and luxury shops.

The decision is part of a worldwide pushback from residents of touristic hotspots against short-term rentals. Critics say that such accommodation intensifies housing crises by reducing supply for long-term lets and raising their costs. Major cities including New York, Tokyo, London and Paris have placed restrictions on them. In June, Barcelona announced plans to phase out short-term rents by 2029.