Poland

Poland is experiencing a pronounced housing crisis marked by both a **large deficit of housing units**—estimated between 1.5 and 2.2 million—and rapidly rising property prices. The housing gap is particularly severe in urban centers, where job opportunities draw people but new construction cannot keep pace with demand. Over the past five years, prices for newly built properties in major cities have soared, increasing up to 79% in cities like Łódź. In June 2025, prices in Warsaw reached about 3,480 euros per square meter, a 14.4% annual rise. Even with significant building activity, completions are not closing the gap: the number of new homes started fell by 7% year-on-year in early 2025. Rental prices have also spiked, straining lower-income households and young people who are often unable to purchase property. The **overcrowding rate** in Poland stands at 32.9%, nearly double the EU average. The average age for leaving the parental home is 28.1, well above the EU mean, highlighting affordability problems for the young. The crisis disproportionately affects urban residents, young adults, families with lower incomes, and an increasing number of migrants and refugees. While homeownership rates remain high, the rental market is underdeveloped and public or social housing makes up only about 7% of the total stock. Hidden within the numbers, nearly 12% of Poland’s housing units—over 1.8 million dwellings—are uninhabited, even as millions need homes.

The current Polish government is addressing the issue of affordable and sustainable housing through several initiatives. One key program is the "Key-to-Housing" program, which focuses on municipal housing, social housing, and property ownership. The program aims to deliver 15,000 new social and municipal apartments in its first year, with an annual target of 40,000 units by 2030. It involves a significant financial commitment of approximately €570 million (PLN 2.5 billion) for social housing in the initial phase. The government also aims to expand housing cooperatives and social housing associations to increase the housing supply without directing state funds to private developers. Additionally, Poland is working on improving energy efficiency in housing, with a focus on renovating existing stock and constructing new, energy-efficient social housing using substantial EU funds. In terms of recent targets, the housing market is expected to grow by about 8% in 2025 and accelerate to 10% annually by 2026-2027. The government's efforts are also supported by broader policy changes, such as changes in real estate tax laws, which will affect property valuation and taxation.

Housing cooperatives in Poland play a **diminishing but still significant role** in the housing sector. Historically, cooperative housing was a dominant form of residential construction, but today it constitutes a **marginal share of new developments**. As of recent years, **about 17% of the total housing stock is held by cooperatives**, though they account for less than 3% of new housing being built. In the first quarter of 2025, cooperative, municipal, and social housing together represented only about 5% of new housing permits. Most growth in non-developer housing is concentrated in a few cities, indicating that benefits are regionally uneven. The sector faces several challenges: annual outputs remain low, and there is significant **geographical concentration** of new cooperative projects. Despite this, some innovative initiatives are emerging, supported by state institutions like BGK, but these do not fundamentally reverse the overall downward trend. Government policies are aiming to **expand housing cooperatives and social housing associations** as part of a broader drive to increase affordable housing supply. Financial support, regulatory changes, and programs to improve access to financing and energy efficiency are in place. Nevertheless, compared to private and public rental sectors, the development of cooperative housing is currently limited, and there is no strong momentum indicating major future growth. The overall **dynamics show stagnation in the cooperative sector**, even while Poland is actively searching for solutions to boost affordable housing availability.

In Poland, the housing market is characterized by a high homeownership rate of about 87.10% as of 2024, leaving a relatively small percentage, approximately 12.9%, of the population renting their homes. The average price to buy an apartment is around 13,404 PLN per square meter, which is roughly 2,850 euros. Rental prices have been increasing, with an average asking rent of about 3,581 PLN per month, or approximately 762 euros. Publicly owned housing includes council flats and social housing, with the latter being designated for those who cannot maintain a dwelling on their own. Social housing rents are lower than council flats and cannot exceed half of the lowest council flat rental rate. The share of social housing in Poland is relatively small, accounting for about 7% of the total housing stock. Public housing and social housing are not exactly the same, though both are managed by local authorities. Public housing includes council flats, while social housing is a subset providing cheaper options for specific groups. The government has introduced initiatives like the Mieszkanie Plus program to address the housing shortage, but public housing remains underdeveloped compared to Western European standards.