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Index: The availability and quality of housing in the Czech Republic is now the fifth worst among EU countries

by AI | 08.Nov 2024 | Europe in brief AI

A serious housing problem currently affects 1.6 million Czechs according to the index. Housing also remains financially demanding according to the index, although the ratio for acquiring own housing has slightly improved year-on-year.

Illustrative photo – houses, apartments. Photo: Rolf Vennenbernd/dpa

Prague – The availability and quality of housing in the Czech Republic is the fifth worst among the European Union countries. Currently, the Czech Republic ranks 23rd among the European twenty-seven and has dropped by one place compared to last year. The reasons are primarily rising housing costs and insufficient construction. The attractiveness of rental housing compared to buying one’s own housing has also significantly declined. This is according to this year’s Index of Prosperity and Financial Health prepared by Česká spořitelna and the Europe in Data portal.

A serious housing problem currently affects 1.6 million Czechs according to the index. Housing also remains financially demanding according to the index, although the ratio for acquiring one’s own housing has slightly improved compared to last year. Buying an average apartment now requires 13 annual salaries compared to 15 last year. Nevertheless, according to the data, this is one of the worst results in the European Union. The attractiveness of rental housing compared to buying one’s own housing has decreased – while last year the Czech Republic was the third most advantageous among the EU countries, this year it is only the 13th most advantageous.

“The conditions for housing in the Czech Republic are worsened by high prices of new buildings, financial inaccessibility, the lengthy process of building permits, and new construction overall. While Swedes or Finns can buy an average-sized apartment for eight annual salaries, Czechs need 13, which is the fifth highest number in the EU,” said analyst of the Europe in Data project Milan Mařík. The average price of new buildings is currently 57 percent higher than in 2015, which is the sixth steepest increase in the EU, where the average is 37 percent.

One of the areas that has improved in terms of housing, according to the index, is investment in residential construction. In the Czech Republic, this accounts for 6.2 percent of GDP, the fifth highest share in the European Union. According to the latest data, the Czech housing stock consists of 509 apartments per 1,000 inhabitants, the 16th highest number among the EU states. Overall, however, the Czech housing stock remains insufficient according to the index. (November 7)