Hungary launches Wekerle Home Construction Programme to tackle housing crisis

The Hungarian government is launching the ‘Wekerle Home Construction Programme’ to address a deepening housing crisis. Transportation and Investment Minister Dávid Vitézy announced that the initiative can utilize EUR 550 million from European Union funds, with the potential to reach up to EUR 2 billion through bank and market co-financing.

Minister Vitézy characterized the current housing situation as requiring active state intervention due to skyrocketing rents, insufficient dormitory capacity for students, and a lack of new construction. He noted that over the last 15 years, real house prices in Hungary have risen by 120%, significantly outpacing the 60% increase in real wages. In 2015, an average home cost 5.9 years of net earnings, a figure projected to rise to 7.1 years by 2025.

The program aims to position the state as a supportive actor in housing policy, focusing on social, quality, and urban development aspects to stabilize the market.