Hungarians are facing growing demand and rising prices in the rental market, especially in the capital Budapest, as high inflation, stagnant wages, and steep mortgage rates push more potential home buyers to rent instead. Budapest, once known for its affordable living, has now become Europe's ninth-most expensive city for rentals, with rent prices rising faster than locals' monthly wages. A joint report by the Hungarian Statistical Office and ingatlan.com found that rental demand in Budapest has increased by 14 percent this year compared to that in the previous year. "The financial potential of those people who want to rent an apartment is not growing in the pace as prices are going up. It means that there is a huge stock which is not rented out, because less and less people can afford rentals, for example, in Budapest," said Lazslo Balogh, chief business expert at ingatlan.com. In early 2024, four in ten buyers purchased properties in the city as investments, according to a Hungarian National Bank report. This trend in housing investment has further driven the growth of rental prices. Some neighborhoods, such as District V in the city center and parts of Budapest on the west side of the Danube, have seen the biggest rent increases, with one-bedroom apartments averaging over 1,000 U.S. dollars per month. To address its housing crisis, Budapest has announced new measures, committing 60 million U.S. dollars to the effort. The plan includes 5.5 million U.S. dollars from EU funds to expand affordable housing, 23 million U.S. dollars to renovate rentals and convert empty properties, and the creation of a new housing agency. Recently, a central Budapest district announced it would ban short-term rentals starting in January 2025. Shortly after presenting the plan, experts said rental prices began to drop. However, the long-term effectiveness of this measure remains uncertain. "We can see that in other cities where they did the same regulation, it [did] not solve the problem for affordable apartments. So, that problem was not solved with banning short-term rent, or Airbnb," said Simon Peter Uzoni, a rental operator. Currently, for many in Budapest, the rising cost of housing is forcing them to seek homes outside the city, trading the vibrant heart of the capital for more affordable residential options. SHOTLIST: Budapest, Hungary - Recent 1. Various of interiors of residential building; 2. Exterior of apartment building; 3. Moving van at roadside; 4. Man carrying boxes, entering building; 5. SOUNDBITE (English) Lazslo Balogh, chief business expert, ingatlan.com: "The financial potential of those people who want to rent an apartment is not growing in the pace as prices are going up. It means that there is a huge stock which is not rented out, because less and less people can afford rentals, for example, in Budapest."; 6. Various of apartment buildings; 7. Information of houses for rent, sale; 8. Various of apartment buildings; 9. Pedestrians; 10. Various of rental operator Simon Peter Uzoni working on computer; 11. SOUNDBITE (English) Simon Peter Uzoni, rental operator: "We can see that in other cities where they did the same regulation, it [did] not solve the problem for affordable apartments. So, that problem was not solved with banning short-term rent, or Airbnb."; 12. Various of street views, pedestrians; 13. Aerial shot of city, river. [Restrictions: No access Chinese mainland]