A district in Budapest has voted to implement a ban on short-term rental properties, which will take effect in 2026. This move is driven by concerns over the rising housing costs and disruptions caused by tourists, as many properties have been transformed into vacation rentals through platforms like Airbnb and Booking. The district's mayor, Tamas Soproni, emphasized the impact of tourism on the city’s residents, noting that such rentals make neighborhoods unaffordable and less livable.

Budapest, a popular tourist destination in Central Europe, has seen a surge in short-term stays, especially in its scenic sixth district. The new restrictions come after local residents voiced concerns about the negative effects of tourism on their quality of life. The ban is also seen as a response to broader housing shortages in the city, which have been exacerbated by the growth of the short-term rental market.

This measure follows similar actions taken by other European cities such as Barcelona and Prague, which have been struggling to balance tourism with local housing needs. In fact, Barcelona plans to restrict vacation rentals starting in 2028 to mitigate housing problems. These regulations are part of a larger European trend towards addressing the housing crisis worsened by short-term rentals.

Critics argue that this ban could harm the local economy, especially businesses that cater to tourists, such as cafes and restaurants. Property owners who rely on the income from short-term rentals may also be negatively affected. However, proponents believe that the ban will create more long-term housing options, which could stabilize rental prices and improve residents' quality of life.

The referendum, which will determine the district's future approach to short-term rentals, could also influence nationwide regulations under consideration by Hungary's government. The outcome is expected to have significant implications for both the housing market and the tourism sector in Budapest.

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