Housing affordability and credit access face challenges in Czechia and Slovakia

Housing affordability and credit accessibility remain significant challenges in the Czech Republic and Slovakia. In the Czech Republic, housing affordability is among the lowest in the EU. A survey by Česká spořitelna and Ipsos indicates that nearly half of Czech residents spend more than 30% of their net income on housing, a figure notably higher than the EU average of 24%. This financial burden heavily impacts young people, with 60% of those under 30 dissatisfied with their housing situation reporting that they have postponed major life decisions, such as starting a family.

In Slovakia, the National Bank of Slovakia (NBS) has identified a growing trend of credit avoidance. Approximately 5.3% of Slovak households face difficulties accessing credit, but a significant portion of these individuals do not even apply for loans because they anticipate rejection. This self-exclusion is particularly prevalent among unemployed individuals, those with low assets, young people, and those with only basic education. The NBS notes that this phenomenon is often invisible in standard banking statistics since these individuals never enter the formal application process.