Czech households spend an average of 26% of their annual income on rent, with this figure varying significantly across different regions, according to the Ministry of Economy and Trade.
People living in Prague and less affluent areas are most affected by rising housing costs.
A report by the Ministry of Regional Development (MMR) on housing affordability reveals that more than one-fifth of households consider housing expenses to be a significant burden. Among those most impacted are 40% of low-income households, nearly 36% of renters, and over 30% of single-parent families, all of whom face the risk of excessive housing costs. On average, it takes five years’ worth of income to purchase a medium-sized home.
The MMR report also indicates that the Czech Republic is one of only four OECD countries where rental housing affordability has not improved since 2008. In Prague, rents can consume as much as one-third of a family’s income, while in smaller towns, this share is lower, at about 15%. The disparity between new and old rental contracts is also striking.
Over the past decade, rent for new market-based contracts has risen significantly faster than for existing contracts. While average market rent has risen by 56% since 2014, real estate portals show a 94% increase, while net income has grown by just 69% in the same period.
The MMR report also highlights worsening financial pressures for homeownership, particularly in larger cities. On average, a household needs to save for five years to purchase a 60 m² apartment. In Prague, however, this figure is three times higher. Despite being close to the OECD average in long-term comparisons, the trend in the Czech Republic is deteriorating rapidly.
