As part of the New Economic Policy Action Plan, the government has initiated public consultations regarding the regulation of Airbnb in the capital with the goal of ensuring affordable housing, the Ministry for National Economy (NGM) announced on Monday.
According to the statement, for the Hungarian economy to achieve growth between 3 and 6 per cent by 2025, the government has adopted a 21-measure New Economic Policy Action Plan. One of the pillars of this plan is to guarantee affordable housing, as home ownership is regarded as the most crucial aspect of self-sufficiency across generations, which is essential for the well-being of families and the success of young people.
The government has provided local municipalities with the means to address the housing crisis in Budapest, but thus far—with a few exceptions—neither the districts nor the city have taken significant steps towards ensuring affordable housing, the statement added.
To tackle the housing crisis in Budapest, the government is significantly tightening regulations around short-term rentals (Airbnb), with public consultations on the relevant provisions beginning on Monday. Under the proposed legislation starting in 2025, the annual lump sum tax on private accommodation—which has remained unchanged for seven years—will quadruple in Budapest, rising from the current extremely low rate of 38,400 to 150,000 HUF per room. Additionally, the proposal introduces a two-year moratorium on Airbnb-type short-term rentals, meaning that no new registrations for short-term accommodation will be allowed in the capital in 2025 and 2026. This tightening of regulations will not affect rural municipalities in any way, the Ministry explained.
‘The local population has been progressively pushed out of the rental and property markets in the inner districts of the city’
It is evident that the current housing situation in Budapest has become critical, as rent can account for as much as 50–60 per cent of monthly incomes. Approximately 18 per cent, or 140,000 of the 800,000 households in the capital, live in long-term rental accommodation, which is considered exceptionally high by international standards, the statement said. This situation has been exacerbated by the significant expansion of short-term rentals (Airbnb) for tourism purposes in recent years, with nearly 26,000 rooms currently available for guests in private accommodation in the capital.
As a result, precisely the type of apartments that are sought after by workers, students, and young families in search of rental accommodation have been removed from the Budapest rental market. Airbnb-driven property investments have contributed significantly to both rising rental prices and property values, making affordable housing unattainable for those seeking to secure their own home. The local population has been progressively pushed out of the rental and property markets in the inner districts of the city. This is further illustrated by the fact that since the Covid pandemic, property prices and rent in Budapest have increased by more than 40 per cent. Moreover, Airbnb also infringes upon the rights of permanent residents to undisturbed privacy, especially in the city’s central districts, the statement pointed out.
Although resolving Budapest’s severe housing crisis should primarily be the responsibility of the capital city, it is apparent that it is unable to handle this issue. The inaction of local municipalities has only worsened the crisis, which is why the government, in collaboration with the Budapest branch of Fidesz, must intervene in the interest of families and find appropriate solutions, the NGM explained.
Related articles:
