The tightening of Airbnb regulations serves to solve the housing problem in Budapest

By: Trademagazin Date: 2024. 11. 18. 09:21

Airbnb sent an open letter to Minister of National Economy Márton Nagy, the letter contains several misinterpretable and misleading statements, the Ministry of National Economy (NGM) told MTI.

In order to clarify the situation, the NGM drew attention to several things. “First of all, it is important to emphasize that the government treats short-term housing rentals (STR) as a housing issue, the stricter regulation applies only to the Budapest area, and does not affect Hungary’s rural settlements,” they wrote in the announcement.

They explained that the current housing situation in Budapest has become critical, as the ratio of apartment rents can reach up to 50-60 percent of monthly income. Almost 18 percent of the 800,000 households living in the capital, 140,000 households, live in long-term leases, which is outstanding even in international comparisons.

They added: this situation was significantly worsened by the fact that the short-term rental of apartments for tourist purposes (Airbnb) has spread significantly in recent years. Between 2020 and 2024, the number of private and other accommodations involved in the short-term rental of apartments in Budapest increased by 80 percent, so that there are currently nearly 26,000 rooms in the capital’s private accommodations.

The number of private and other accommodation rooms affected by the STR expenditure exceeds the number of hotel rooms in the capital. More than 40 percent of guest nights registered in Budapest can be linked to private and other accommodations involved in short-term apartment rental, which is far above the 28 percent average of the regional capitals, they indicated.

As a result, apartments of exactly the size that are sought by employees, students, and young families looking for a rental apartment in the capital have been removed from the Budapest sublet market.

The ministry added that real estate investments for the purpose of Airbnb, in addition to driving up sublet prices, also contributed significantly to the rise in real estate prices, making affordable housing impossible for those who want to secure their own home. The local population was thus gradually pushed out of the rental and real estate market of the inner districts.

This is clearly demonstrated by the fact that apartment prices and rents in Budapest have risen by more than 40 percent since Covid. In addition, Airbnb also limits the rights of permanent residents to an undisturbed private life, especially in the inner districts of the capital, they wrote in the announcement.