Short-term rental platforms like Airbnb and Booking are transforming the housing market in the Czech Republic, particularly in Prague.
In 2023, Eurostat data showed that 8.9 million nights were spent in short-term accommodations across the country—equivalent to 24,300 overnight stays daily. Prague alone accounted for half of this figure, with 4.6 million nights, or 12,800 overnight stays per day, requiring approximately 16,000 apartments at an average occupancy rate of 80%. This phenomenon is contributing to rising housing prices and reduced availability in city centers.
While 16,000 apartments represent only 2.2% of Prague’s total housing stock, housing demand in the city is highly inelastic, meaning even small supply reductions can significantly drive up costs. Short-term rentals are estimated to have increased housing prices in Prague by 3–6%, with the potential for even greater impacts if rental unit occupancy drops to 50%.
The situation is compounded by the nearly 94,000 unoccupied apartments reported in Prague’s latest census, which constitute 13% of the city’s housing stock. However, their actual status as “unoccupied” remains uncertain due to a lack of reliable data. Česká spořitelna’s chief economist David Navrátil notes that if one-third of these units are truly vacant, as electricity meter data has revealed in Bratislava, Prague could face an additional 30,000 empty apartments, potentially driving prices up by another 6–10%.
Short-term rentals not only influence housing costs but also affect the quality of life in residential neighborhoods. According to a STEM/MARK survey, one-fifth of Czechs believe platforms like Airbnb negatively impact housing availability and raise rents. Many Prague residents report issues like noise, disorder, and a disrupted social environment due to the influx of tourists into traditionally residential areas.
Investors further exacerbate the issue by prioritizing short-term rentals over long-term leases for higher returns, thereby reducing the availability of affordable housing for locals. Without effective regulation, the trend continues to erode housing accessibility and affordability in Prague and other Czech cities.
To address these challenges, experts call for better monitoring, data collection, and regulatory frameworks to balance the interests of tourists, investors, and local residents. Comprehensive action could mitigate the economic and social consequences of short-term rentals while ensuring a sustainable housing market.
