The Czech Republic is experiencing a growing housing crisis as rent increases while wages fail to keep pace with rising prices. Over the past three years, rent for small apartments has risen by 28%, and for larger ones by 22%.
High inflation and rising utility costs have only worsened the situation, according to financial expert Libor Ostatek. Over the past year, rent for small apartments has increased by 5.7%, and for cottages by 6.8%. Due to the rise in property prices after COVID-19 and the increase in mortgage rates, many are forced to rent. According to Erste Group, approximately 2.5 million Czechs are currently living in rental housing.
Changes in family structures have also driven up the demand for rentals, as more people prefer separate housing. Additionally, the age at which Czechs can afford to buy their own homes has shifted by five years, now approaching 35 years old.
The demand for rental housing is particularly high in Prague and its surrounding areas. In many suburbs, such as Mníšek pod Brdy, rental apartments are virtually nonexistent. As a result, renting has become a heavy burden for the population: according to a UN study, one-third of Czech households spend more than 30% of their income on rent and utilities.
