The average family in the Czech Republic spends 26% of their annual income on renting a flat, according to the Ministry of Economy and Trade.
The highest housing expenses are borne by residents of Prague and less developed regions. Data from the Ministry of Regional Development (MMR) shows that over 20% of households consider housing costs a significant financial burden. This issue is particularly severe for low-income families, renters, and single parents. Purchasing a mid-sized flat requires approximately five years of average household income, while in Prague, it takes three times more.
Since 2008, rental affordability in the Czech Republic has barely improved, MMR reports. In major cities, rental prices have surged: since 2014, market rents have risen by 94%, while household incomes have increased by 69%.
Minister of Regional Development Petr Kulhánek stated that high housing costs disproportionately impact young families, elderly citizens, and urban residents. As part of the “Housing for Life” reform, the government aims to encourage the construction and development of affordable rental housing.
