Hungarian government implements two-year moratorium on Airbnb in Budapest to address housing crisis

The Hungarian government has unveiled bold new measures to address Budapest’s housing crisis, including a two-year moratorium on new Airbnb rental registrations. As part of a sweeping economic policy plan, the move aims to curb the impact of short-term rentals on the city’s strained long-term housing market while introducing higher taxes for Airbnb operators and stricter regulations on property investments.

Fighting a housing crisis

As Index reports, the Hungarian government has announced a two-year moratorium on new Airbnb-style short-term rental registrations in Budapest, effective 1 January 2025. Under this regulation, no new private or other short-term accommodation will be permitted in the capital until 31 December 2026. The move aims to address the strain on Budapest’s long-term rental market, as nearly 18 per cent of the city’s 800,000 households currently rely on long-term rentals—a figure high by international standards. Officials argue that the proliferation of short-term rentals has significantly impacted housing availability.

The moratorium is part of the government’s 21-measure New Economic Policy Action Plan, which seeks to achieve a 3-6 per cent economic growth rate in 2025. By tightening rules on Airbnb in Budapest, authorities hope to alleviate the housing crisis while boosting economic stability. The policy reflects growing concerns over how short-term rental platforms are reshaping urban housing markets and will be closely watched for its broader effects.

Photo: depositphotos.com

Increase in Airbnb taxes

The new legislation will also see a sharp increase in taxes for Airbnb-type rentals in Budapest, with the annual flat tax per room set to quadruple from HUF 38,400 (EUR 92.79) to HUF 150,000 (EUR 362.45)  starting in 2025. This marks the first adjustment in seven years and is part of broader efforts to regulate short-term rentals in the capital. While rural areas will remain unaffected, Budapest’s housing market has seen a notable impact from the nearly 26,000 rooms currently offered as short-term rentals. Officials attribute the housing shortage in part to this expansion, which has strained long-term rental availability for the city’s 140,000 households relying on such accommodation.

What does the Budapest Mayor have to say about this?

Budapest Mayor Gergely Karácsony has highlighted multiple factors contributing to the city’s housing crisis, including insufficient municipal rental housing, unregulated Airbnb operations, and investment-driven housing purchases by foreign buyers. Currently, only 4 per cent of flats are municipally owned, often in poor condition or segregated areas. To address these challenges, the Mayor proposed a two-year moratorium on property purchases by non-European Economic Area citizens, which the Municipal Assembly approved in October. Additionally, Karácsony has advocated for building rental housing, expanding dormitory accommodation, and introducing stricter regulations on Airbnb in Budapest as part of a broader ten-point housing reform plan.

Photo: FB/Karácsony

Read also:

• Airbnb pens open letter to Hungarian economy minister
• Hungary’s parliament approves workers’ credit and short-term rental permits in Budapest

Featured image: depositphotos.com