Czechia faces a housing shortage of roughly half a million apartments, with industry experts warning that housing construction needs to almost double to meet demand.

Kamil Jeřábek, CEO of Wienerberger s.r.o., says the country should be building at least 60,000 new units annually for the next 15 years to match Western European housing availability.

Current figures show that only about half that number are completed each year. Between 2006 and 2024, Czechia completed an average of 32,600 apartments annually.

This falls well short of demand, contributing to rising prices and declining accessibility for buyers and renters.

By comparison, Western European countries average 525 housing units per 1,000 people, while Czechia has just 484 – a shortfall of around 40 units per 1,000 residents.

Jeřábek notes that interest rates remain a key barrier to homeownership.

Buyers often consider 3.5% the “trigger point” to enter the market, but although the Czech National Bank has lowered its base rate to that level, banks are still offering mortgages closer to 4.5%. “We do not expect a significant drop this year, but rates could approach 4% early next year,” he said.

Internal figures from Wienerberger’s Porotherm and Tondach brands suggest demand for building materials remains strong, with brick and roofing sales serving as reliable indicators of future housing activity.

Mortgage data also highlights a close relationship between interest rates and construction activity: in 2011–2019, Czechia averaged 18,000 construction mortgages a year with rates between 2.0% and 4.0%. This year, that figure may reach only 13,000, at an average rate of 4.5%.

Jeřábek believes 2025 will likely bring market stabilization but not a sharp rebound.

“The beginning of the year showed some improvement, yet the sector still lacks the momentum to drive large-scale investment. More accessible financing and stronger investor expectations could lead to a positive correction in 2026,” he said, adding that systemic measures are needed to ensure housing becomes affordable again.

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