South Moravia faces housing crisis due to funding and land shortages

A survey of 109 municipalities in the South Moravian region reveals a significant housing crisis driven by financial constraints and administrative hurdles. According to data from CEEC Research, 65 percent of respondents identified a lack of funding as the primary barrier to developing affordable rental housing, while 71 percent stated they could not implement projects without state support.

Land availability is another critical issue, with 52 percent of local governments citing a shortage of suitable plots—the highest percentage among seven regions surveyed. Despite this, a paradox exists where 44 percent of municipalities claim to possess land suitable for new construction.

Administrative delays also plague the sector. Approximately 40 percent of municipalities reported that lengthy and unpredictable permitting processes hinder development. Experts noted that the lack of predictability in whether permits will take two years or ten years creates significant instability for housing projects. Additionally, 58 percent of municipalities highlighted a specific shortage of starter apartments for young families.