Housing Reforms in Czechia and Poland

The report "Housing Reforms in Czechia and Poland" is published by OECD Publishing, authored by a team of experts including Esther Raineau-Rispal and Filippo Cavassini, among others. It addresses the pressing challenge of housing affordability faced by both Czechia and Poland, highlighting how rising demand for housing due to increasing incomes, urbanization, and demographic shifts has outpaced supply. The document outlines key housing market trends and proposes policy actions aimed at enhancing housing affordability, especially for vulnerable groups.

Czechia and Poland have seen significant economic growth and improvements in living standards, but housing affordability remains a critical issue. In both countries, real house prices have increased sharply, leading to a burden on low- and middle-income households. In Czechia, the housing stock comprises a high percentage of owner-occupiers (72%), while Poland has an even higher rate at 84%. The report notes that the market for affordable rental housing is underdeveloped, with social rental housing accounting for only 3.6% of the dwelling stock in Czechia and 6.6% in Poland.

Investment in housing has lagged, particularly since the 2008 global financial crisis, resulting in limited new construction and maintenance of existing stock. In recent years, rising construction costs and restrictive land-use regulations have exacerbated the situation. In Czechia, the average household spends about 18.9% of its income on housing costs, compared to 16.4% in Poland. The report also highlights the high rate of vacant dwellings, which stands at 16% in Czechia and 12% in Poland, suggesting a mismatch between supply and demand.

The report emphasizes the need for comprehensive housing reforms tailored to each country. For Czechia, the focus should be on implementing the 2021 Housing Strategy, which aims to strengthen policies and institutions supporting affordable housing development. Recommendations include broadening the scope of affordable housing providers, improving spatial planning, and reforming property taxes. In Poland, the emphasis is on boosting the supply of affordable housing and providing tailored housing solutions integrated with social and health services.

The OECD's analysis incorporates insights from various stakeholders in both countries, including surveys and webinars to gather expert opinions. This collaborative approach aims to ensure that policy actions are grounded in local realities and best practices from other OECD countries. The report draws on extensive data to support its findings and recommendations, including socio-economic metrics that highlight the disparities in housing access and quality.

The "Housing Reforms in Czechia and Poland" report serves as a crucial resource for policymakers and stakeholders interested in sustainable housing solutions. By addressing the challenges of affordability, investment, and integration of social services, the report lays the groundwork for future initiatives that can improve housing conditions for vulnerable populations in both countries, contributing to a more sustainable approach to urban living.