While those favoring the ban argue that it will reduce housing shortages and rent inflation, this approach overlooks the more significant systemic problems driving the housing crisis. The rising cost of living and limited housing projects are far more influential than short-term rentals in shaping the housing market. Even without Airbnb, housing affordability would remain a critical issue due to the scarcity of new housing and broader economic pressures.

Furthermore, the local ban raises concerns about a possible national-level restriction on short-term rentals, as a leading Fidesz politician hinted during the weekend. If this decision sets a precedent, a blanket ban on platforms like Airbnb could have unintended consequences. It may hinder tourism, which many local businesses and workers depend on, and it could affect the livelihood of those who supplement their income by renting out properties. Bans may also shift the housing market without solving the key issue: the supply of affordable homes.

International examples, such as in Barcelona, Paris, and New York City, demonstrate that Airbnb bans or severe restrictions have not resolved housing crises. In Barcelona, while strict regulations have reduced the number of available short-term rentals, they have also increased illegal listings, making enforcement challenging. Paris has seen a similar rise in non-compliant rentals, while in New York City, stringent rules have displaced Airbnb to the black market, complicating oversight and leaving both hosts and guests in legal grey areas. Moreover, consumers are now facing surging hotel room prices, as the supply of accommodation in cities banning short-term rents is still low, but the demand side is still relatively high. As for rent prices, they have still increased by 3.4%, even with rent control and the ban on short-term rentals. 

Rather than treating Airbnb as a scapegoat, policymakers need to focus on meaningful reforms such as increasing the construction of extra housing, which makes for actual affordability, and providing rent subsidies. Addressing these core problems would have a far more lasting impact than banning short-term rentals, which serves as little more than a temporary patch on a much larger problem.

Considering these concerns, the decision in Terézváros appears more symbolic than substantive. It fails to engage the broader population in addressing the real challenges of the housing crisis while opening the door to overregulation at a national level that could harm the wider economy and Hungarian consumers. 

Originally published here