Czech housing market faces affordability crisis amid record prices

The Czech housing market faces significant affordability challenges despite rising demand and record prices. According to the Housing Future Index by Komerční banka and Ipsos, approximately 1.4 million Czech adults plan to acquire their own home or apartment within the next five years, a number expected to grow to 2.2 million over ten years.

However, financial accessibility remains a major barrier. Only 7% of those not currently owning property consider it affordable, while 83% view it as unaffordable. Financing methods vary, with 50% of seekers planning to use a mortgage over the next decade, 33% relying on personal savings, and 18% expecting parental assistance. Among Generation Z, 69% intend to use mortgages.

Data from Maxima Reality shows that the median price for older apartments reached a historical high of 4.3 million CZK in July. While sales of older apartments in the first seven months of the year increased by 25% compared to 2024, regional growth has outpaced major metropolitan areas. In Prague, the average price per square meter was 152,430 CZK, while Brno saw prices of 119,794 CZK per square meter. Small studio apartments remain popular due to their relative affordability and investor interest.