The Czech Republic is experiencing a significant shift in its housing landscape, where the traditional dream of homeownership is increasingly colliding with economic realities. Despite high property prices and expensive mortgages, approximately 86% of Czechs still aspire to own their homes, according to an Ipsos survey for Komerční banka.
Generation Z, born between 1996 and 2009, shows surprising attachment to homeownership, with four-fifths preferring to buy rather than rent. This contradicts developers’ assumptions about younger generations preferring the flexibility of rental properties.
However, the reality paints a different picture. Last year, 25.3% of Czechs lived in rented accommodation, marking the highest proportion in 17 years. This increase from 20% in 2020 reflects the growing gap between housing aspirations and affordability.
The situation is particularly acute in major cities like Prague and Brno, where an average new apartment costs more than 14 times the average annual salary. In comparison, cities like Warsaw, Vienna, and Berlin require less than ten annual salaries for property purchase.
Local authorities are responding to this crisis. Prague’s development company is planning to build 8,000 apartments with reduced rent, targeting essential workers like police officers and nurses. Meanwhile, the Ministry for Regional Development aims to increase municipally-owned housing from the current 3.5% to 10% of the total housing stock.