Budapest district narrowly votes to ban short-term rentals from 2026

BUDAPEST (Reuters) - Residents of Budapest's sixth district have narrowly voted to ban short-term rentals from 2026 in a decision which could have wider ramifications for the housing market in one of Europe's most popular tourist destinations.

Eurostat figures show almost 719 million guest nights spent in the European Union were booked via online platforms Airbnb, Booking, Expedia Group and Tripadvisor last year, with Paris leading EU capitals with over 19 million guest nights.

Within central Europe, Budapest was the most popular for short-term stays with 6.7 million guest nights, ahead of Vienna, Prague, Warsaw, Krakow and others.

Results published on the Budapest district's website early on Monday showed 54% of voters backing the ban with 20.52% turnout, which the district said was well above levels seen at other local initiatives.

"The majority of YES votes signals that residents of the district value the peace of their home more than lost revenue," the local council said in a statement.

District mayor Tamas Soproni has said the city's popularity has justified asking locals about the impact of short-term stays on housing affordability and quality of life.

Opponents of a ban have said the move would hit revenue not just for apartment hosts but nearby cafes and restaurants catering largely to foreign tourists.

The outcome of the vote could have wider implications, with Prime Minister Viktor Orban's government mulling regulation on short-term rentals, which the economy minister says contribute to a housing shortage and high prices.

Real estate website ingatlan.com said last week that the supply of high-end apartments for sale in the sixth district had increased by nearly 3% over the past month, with prices dropping by 1% in a possible sign of the expected outcome of the vote.

(Reporting by Gergely Szakacs; Editing by Michael Perry)