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STORY: This district in Budapest is holding a two-week referendum on short-term rentals and whether they should be banned.

It would be the first of its kind in one of Europe's most popular tourist destinations.

District mayor Tamas Soproni says the city’s popularity has justified asking locals about their impact on housing affordability and quality of life.

"You cannot sit idle and wait for something to just happen. More and more flats are becoming 'airbnbs', it’s true for all the districts."

Eurostat figures show almost 719 million guest nights spent in the European Union last year were booked via online platforms such as Airbnb, Expedia Group, Booking and TripAdvisor.

In central Europe, Budapest was the most popular for short-term stays, with 6.7 million guest nights – ahead of cities like Vienna and Prague.

Real estate website ingatlan.com said a ban in the sixth district, where apartment prices are 22% above the Budapest average, could temporarily curb long-term rental prices.

Locals were mixed on the proposal.

Gabor Siklosi says Airbnb’s “should be regulated, put within limits, but not banned.”

While Matild, who didn’t give her surname, says short-term visitors cause problems.

But there are also worries about the effect on local businesses catering largely to foreign tourists.

This owner of a 'ruin bar' – popular with visitors – says local councils, lawmakers and organizations should deal with the issue, but not go so far as a ban.

Voting ends on September 15 and, if adopted, a ban would start from the beginning of 2026.

The outcome could have wider implications, with Prime Minister Viktor Orban's government mulling regulation on short-term rentals, which the economy minister says contributes to a housing shortage and high prices.