Czechia

New Study Shows that Prague has Europe’s Least-Affordable Housing

Prague grapples with a critical housing affordability crisis, holding the distinction of having the least affordable housing in Europe. While private construction plays a role, a new analysis by non-profit housing organizations emphasizes the need for substantial political intervention. The report, presented on Tuesday, highlights a worsening situation despite existing measures by the Prague City Council. The authors propose solutions like expanding municipal housing, rent regulation, and progressive taxation on investment flats. Representatives from Arnika, Re-set, Platform for Social Housing, Tenants’ Union, and Sustainable Housing in Central Prague co-authored the study. “Despite existing policies,” stated Václav Orcígr of Arnika, the report’s editor, “the housing situation has fundamentally worsened, making Prague the European city with the most unaffordable housing.” The analysis cites a Politico report from late 2023, claiming it takes roughly 25 years of average net income to acquire a 75-square-meter apartment in Prague. The analyst Nina Fabšíková, pointed out that apartment prices have surged by 50% over the past five years, while rents have increased by 30%. Nominal wages have risen by 21%, but real wages, adjusted for inflation, have actually decreased by 15%. The report reveals that a significant portion of Prague households (up to 25%) dedicate over...

by Prague Morning Mar 27, 2024

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