Czechia

The Czech housing market in 2025 is marked by steadily rising prices and high rates of homeownership. About 67.5% to 75% of households own their homes, while the share of private renters is around 18%-19%. Social or publicly owned housing has a minimal role, accounting for only 1.4% of all households and just 0.4% of dwellings; this is among the lowest in Europe.

Currently, the median price to buy an apartment is approximately 3,709 EUR per square meter countrywide, with Prague and larger cities recording higher prices nearer to 3,900-3,950 EUR per sqm. The average rent for residential units is typically around 14.50 EUR per sqm per month in Prague and slightly less in other cities. This means a typical 60 sqm apartment will cost about 870 EUR per month to rent or nearly 222,000 EUR to purchase.

Publicly owned housing and social housing are not the same in Czechia. Public housing refers to municipal ownership, often provided without income-based criteria and may accommodate relatively well-off households. Social housing, however, is reserved for vulnerable groups based on means testing and involves specific rental discounts or state support. The sharp distinction reflects limited regulation and a decentralized municipal approach.

Overall, rental options remain constrained, and social housing provision lags behind many European peers, leaving most Czech households reliant on the private market for both owning and renting.

Czechia’s housing crisis is defined by steeply rising property prices, a severe shortage of suitable homes, and high demand overwhelming limited supply. The average national house price has grown by over 120% since 2015—one of the fastest increases in Europe—while incomes have not kept pace, with house prices outpacing household income by 24% since 2015. These trends worsened in 2024, as rental prices climbed by an average of 17% nationwide (and in some regions by up to 34%), driven by expensive mortgages, high ownership costs, and landlords passing their increased expenses onto tenants.

The crisis is especially acute in Prague and other large cities, where home construction fails to meet annual demand by thousands of units and the average rent for an average apartment often exceeds 1,000 EUR per month. There is sometimes intense competition for available rentals, with as many as 108 applicants per apartment in Prague, making it particularly hard for those seeking affordable or mid-range housing.

People most affected include young families, low-income workers, single-parent households, seniors, and so-called key workers such as teachers, healthcare staff, and emergency service personnel. Vulnerable populations face heightened risks of housing precarity and social exclusion, exacerbated by the near absence of social and affordable housing. The lack of new developments and slow permitting processes further entrench the crisis, especially in urban areas.

The Czech national government is addressing affordable and sustainable housing mainly by supporting the construction and renovation of municipal and affordable rental homes, after decades of limited direct intervention. Key recent targets include unlocking at least 9,000 new housing units per year in Prague by 2030, and a national strategic commitment to align with broader EU goals of reducing greenhouse gas emissions by 30% by 2030.

Concrete government activities include a new programme from the Ministry of Regional Development that offers loans and subsidies to municipalities, organizations, and private developers to increase the number of affordable and municipal rental apartments. For 2025, the state allocated approximately 284 million euros for this support. Additionally, in partnership with Česká spořitelna and the European Investment Bank, over 700 energy-efficient apartments are being built for key public-sector workers in Prague, with a total project value of 187.5 million euros—a model designed to be both socially affordable and environmentally sustainable.

The state is also investing more than 900 million euros from the National Recovery Plan for renewable energy technologies in homes and has implemented strict energy performance standards for new buildings. Other ongoing measures include digitizing and streamlining construction permitting, repurposing unused buildings, promoting cooperative housing, and introducing incentives for sustainable construction, including rooftop solar installation and advanced water management.

Housing cooperatives play a significant supporting role in the Czech housing market, offering an alternative to mortgage-financed ownership and traditional private renting. Cooperative housing consists of members collectively owning the property via a cooperative, with the right to use a specific apartment but not direct ownership. Recent years have seen a revival of this sector: as of 2025, cooperatives manage over 620,000 apartments, and estimates suggest they account for about 7–8% of all dwellings nationwide. Their share of new residential construction is growing; in larger cities, they contribute up to 10–15% of new housing activity, attracting especially young families and seniors who face barriers to mortgages.

Development is driven by rising property prices, stricter bank lending, and affordability concerns, prompting lawmakers and local authorities to promote cooperative models. National policy now includes measures such as tax incentives, state-backed loans, and proposals for municipalities to facilitate land or financial support for cooperative builds. The Ministry of Regional Development and Ministry of Finance are preparing legislative changes to grant cooperative buyers tax benefits similar to those for mortgage holders. Nonetheless, sector limitations remain—cooperative units represent a small share of property sales, and their legal status still lacks parity with private homeownership, but state-supported programs and local government partnerships are expected to strengthen the sector’s role in addressing affordable housing needs.