Hungary

Hungary’s housing crisis is mainly defined by growing affordability problems and pronounced inequalities despite a surplus in housing units. Hungary had about 4.6 million dwellings for 4 million households in 2024, yet roughly 572,000 homes stood empty, particularly in less desirable locations or in poor condition. Housing prices have nearly tripled since 2015 and surged another 15-17% in Budapest in early 2025, while rents have also increased by nearly 10% year-on-year, straining accessibility for new entrants and lower-income populations. Ownership dominates Hungarian housing—90% of households own their homes, yet only about 10% rent, and social rental housing is extremely limited, comprising just 3% of the market. With new construction lagging behind regional peers and frequent regulatory changes discouraging development, supply isn’t keeping up with demand. The crisis disproportionately affects young people, low-income families, and the urban poor. Between 30,000 and 60,000 people are homeless, with up to 300,000 households facing insecure housing conditions—about 8% of households. Around 45,000 households are at risk of eviction due to mortgage debt. Households below the poverty line experience high rates of arrears, contributing to housing insecurity. In Budapest, many young people are increasingly excluded from homeownership, driving emigration and social tension.

The Hungarian government is addressing the issue of affordable and sustainable housing through several initiatives. The Housing Capital Programme aims to construct 50,000 to 60,000 new homes by combining public and private investments, totaling between €2.5 billion and €5 billion. This program seeks to increase housing supply and enhance affordability by ensuring that at least 90% of these homes are accessible to the general public. Additionally, the government has introduced measures like the Home Start program, offering subsidized loans to first-time homebuyers with a fixed interest rate of 3% and a down payment requirement of 10%. There is also a 5% mortgage interest rate cap for first-time buyers under 35, targeting homes priced under €2,900 per square meter. The government has started an intensive communication campaign on affordable housing, including a new economic action plan with ten housing policy instruments to invigorate economic growth. Furthermore, green lending incentives by the Magyar Nemzeti Bank support energy-efficient properties, offering higher loan-to-value ratios and debt-to-income limits.

Housing cooperatives in Hungary represent a **small but established segment** of the housing sector. There are approximately **1,300 housing cooperatives** in the country, compared to around 40,000 condominiums, which are the main form of multi-family housing. Both cooperatives and condominiums are regulated by specific legislation and function as collective ownership models, but cooperatives have a slightly older historical legacy and are often considered more democratic in structure. Despite their historical role, **housing cooperatives today make up only a minor share of the total housing stock**, with no evidence suggesting a significant recent expansion. Most Hungarian households (over 90%) own their homes directly, and the cooperative model is not prominent in new housing development or current market dynamics. The majority of the housing cooperative stock consists of older, existing buildings rather than newly developed units. Cooperative housing in Hungary does not currently benefit from **major government support or dedicated national policy programs** aimed specifically at sector expansion or innovation. Recent state efforts in housing have focused on promoting homeownership, supporting new construction, and providing subsidies for first-time buyers, rather than incentivizing or scaling the cooperative sector. Local governments, rather than national bodies, play a limited role in managing the existing cooperative housing landscape. As of now, **the cooperative housing sector remains relatively static** and does not have a significant share or notable momentum in the Hungarian housing market.

Hungary's housing market is experiencing significant growth, with property prices rising by 13.8% to 15% annually as of mid-2025. Homeownership is predominant, with over 91% of the population owning their homes, while only about 4.2% rent at market rates. The rental market is limited, with averages around €170 per square meter per month in Budapest. The median price to buy an apartment varies significantly, with some areas reaching €800 to €1,000 per square meter. Publicly owned housing plays a limited role in Hungary. Social housing is not well-developed, and the legal framework does not strongly incentivize its expansion. Public housing and social housing are distinct, with public housing often being privatized and social housing being a smaller segment aimed at low-income families. However, both types are not widely available, leading to affordability challenges, especially in urban areas like Budapest. The government's focus on subsidies and tax benefits for homeowners has fueled the market, while policies aimed at increasing supply have been less effective. This has led to rising prices and speculation, with concerns about market sustainability beyond 2026.