• Residents of one Budapest neighborhood have voted to ban Airbnb-style rentals.
• The new law will need to be ratified by Parliament and wouldn’t go into effect until 2026.
• As other European cities crack down on short-term rentals, it’s a rare example of citizens directly voting to do so.

Residents of a bustling neighborhood in downtown Budapest, Hungary, have voted to ban Airbnb-style rentals.

The move comes as a growing list of European cities have cracked down or plan to levy restrictions on short-term vacation rentals.

Terézváros is a historic district in the Hungarian capital known for its dining, nightlife, and entertainment options — one strip of theaters is dubbed “Budapest’s Broadway.” It’s also home to Heroes’ Square, an iconic Hungarian monument and plaza that has hosted important political events.

About 6,000 of Terézváros’ residents turned out over two weeks to vote in a referendum, with over 54% supporting the ban on short-term rentals, according to the district’s official Facebook page and local news reports. Results were published on the district’s website on Monday, according to Reuters.

Concerns that expanding short-term-rental operations might push out locals took center stage in the weeks leading up to the referendum.

The mayor of Terézváros, Tamás Soproni, cheered the vote as a sign that residents were reclaiming the district.

“It is important for them that the district regains its ‘residentity,'” Soproni said in an official statement.

There are currently over 15,000 short-term rental listings in the city of Budapest, according to analytics site AirDNA. The average nightly rate is about $105.

The number of Airbnbs in Budapest has grown rapidly in recent years, for example, by 30% between 2023 and 2024, according to digital outlet Hungary Today.

Terézváros’ ban will need to be approved by Hungary’s Parliament, but the national government has made it easier for local governments to hold these kinds of referendums on Airbnbs. If approved, the ban will not go into effect until January 2026.

Other European cities burdened by overtourism and rising housing costs have levied new rules on Airbnb-style rentals.

Barcelona, Prague, Lisbon, and Florence have all implemented some form of restriction, from capping the number of nights someone can rent out their space to banning short-term rentals in popular parts of the city.

The Terézváros referendum is a rare instance of citizens in a major city expressing a direct opinion on how they want to handle Airbnbs.

Not all voters have had similar opportunities, as other major cities in Europe and even New York City enacted their short-term-rental rules through government policies.

“The residents of the district have set an example of how to use democratic tools and have made a decision about the type of district they want to live in,” Soproni, the mayor, said in his statement.