Many see Airbnb (and similar platforms for short-term rentals) as a major cause of the current housing crisis in major European cities, and as a result there is increasing pressure on local and national governments across the continent to clamp down on the short-term rental market. Most recently, the city of Barcelona announced a dramatic change from previous regulations when, in the wake of anti-Airbnb and anti-tourism protests, it decided to ban short-term rentals in the city completely by the end of 2028. The decision caused a stir not only locally but also globally, with many arguments both for and against. It has also had an impact in Hungary, where this summer Budapest's District VI announced that between 2 and 15 September it would hold a crucial online vote for local residents to ban Airbnbs from the district. This is the subject of a recent economic-political analysis by Republikon.
Key findings of the analysis:
- Airbnb has quickly grown from a home-sharing platform to an alternative to the hotel industry, but unlike traditional hotels, hostels occupy properties in the city that may be suitable for long-term housing
- Many European cities have realised that they can mitigate the housing crisis by regulating Airbnb, most notably Barcelona's initiative this summer to ban Airbnb completely in the city, and now Terézváros is preparing to do the same
- Almost one in ten apartments in Budapest's 6th district is an Airbnb site, accounting for nearly 20 percent of the capital's total short-term rental stock, while the district has the second highest rental rates per square metre
- The vote was won by a margin of around 7 percentage points, with a turnout of more than 20 percent, but this majority may not be enough legitimacy for the public to impose such a drastic ban
- The primary reason for the stringency of potential regulation is the centralised system of local government, which leaves municipalities with no other means than a ban, but such a strong measure could divide district residents
- It is important that, if Airbnb is indeed banned, the district should introduce rules in addition to the ban to motivate homeowners to switch to the long-term rental market, as without this the expected effects of the measure may not be achieved
The full analysis can be read via this link.