An average wage earner in Prague would need to save for a staggering fifteen and a half years to purchase a new 70-square-meter apartment – and that’s assuming they could save their entire salary without paying taxes or other deductions. This sobering statistic from Central Group developer highlights Prague’s growing housing crisis, cementing its position as Central Europe’s most unaffordable capital for housing.
The contrast with other European capitals is striking. While Berlin and Vienna residents need only 7.8 times their annual salary to afford a new home, and Warsaw residents 8.5 times, Prague’s figures are nearly double. The closest comparison is Bratislava, where residents need to save for almost 15 years.
The situation continues to worsen as housing prices increase at a 10% rate, outpacing the 8.8% wage growth. Currently, a 70-square-meter apartment costs approximately 11.8 million Czech crowns, with the average Prague salary standing at 63,106 crowns monthly. A decade ago, the same apartment would have required only ten years of savings – five years less than today.
The ripple effects extend beyond new construction. Both Prague and Brno now rival or exceed housing costs in major European cities like Rome and Milan, despite their residents having lower average incomes. This has pushed more people toward rental housing, though affordability issues persist in this sector as well.
While cities like Vienna and Berlin benefit from extensive municipal housing programs and state-supported long-term rental options, Prague is still searching for similar solutions. The situation reflects a broader national crisis, with Czech rental prices now surpassing those in neighboring Germany, even in smaller cities.