Overview of the OECD Report on Housing Reforms
The OECD 2025 publication “Housing Reforms in Czechia and Poland” analyses recent housing market trends, affordability challenges, and policy responses in the two Central‑European economies. Authored by a multidisciplinary team of OECD researchers—including Esther Raineau‑Rispal, Filippo Cavassini, and others—the work draws on extensive stakeholder surveys, webinars, and expert consultations conducted in both countries. The report is publicly available and reflects the OECD’s responsibility for the analysis, while also noting financial support from the European Union.
Key Market Trends in Czechia and Poland
Housing prices and rents have risen sharply since 2013, outpacing income growth. Real house‑price indices show a steep upward trajectory, particularly in Czechia, where price growth exceeds that of Poland and the broader Euro area. Rental price indices mirror this pattern. Home ownership remains dominant (≈72 % in Czechia, 84 % in Poland), but the share of social‑rented units is low (3.6 % in Czechia, 6.6 % in Poland). Vacancy rates have increased to 16 % in Czechia and 12 % in Poland, limiting the pool of potential affordable units. Energy consumption per dwelling remains above the EU average, underscoring the need for efficiency improvements.
Affordability and Cost Burden Data
In 2022, Czech households spent about 18.9 % of disposable income on housing, compared with 16.4 % in Poland and the EU average. The cost‑burden is driven by high purchase prices, limited rental supply, and rising construction costs (30 % increase in Poland, 27 % in Czechia since 2020). Overcrowding remains a concern, especially in Poland, where rates are twice the EU average. The share of households living in substandard dwellings has fallen but still lags behind EU peers.
Policy Responses and Institutional Frameworks
Both countries have multiple ministries overseeing housing, land use, and social services. Czechia’s Ministry of Regional Development and Poland’s Ministry of Economic Development and Technology coordinate national housing strategies, while local authorities issue permits and implement spatial plans. Recent reforms include:
- Czech “Affordable Rental Housing” programme (SFPI) offering 25‑40 % grant coverage and low‑interest loans for projects ≤ EUR 10 million.
- National Development Bank (NRB) loans covering up to 80 % of costs for larger affordable‑rental projects (> EUR 10 million).
- Poland’s “Keys to Housing” measures within the Medium‑Term Development Strategy (2035), targeting increased municipal and social‑rental stock. Legal definitions of “affordable rent” (≤ 90 % of market rent) and “affordable rental housing” have been introduced in Czechia, though they apply only to funded projects. Poland already possesses statutory definitions for social and affordable housing.
Land‑Use Governance and Planning Challenges
Rigid spatial‑planning rules and fragmented municipal structures hinder rapid housing development. In Czechia, the “one‑size‑fits‑all” Local Territorial Plans (LTP) and lengthy amendment procedures delay projects. Poland’s regional planning authority has limited regulatory power, leading to inconsistent implementation. Stakeholder surveys highlight the need for streamlined permit processes, better inter‑governmental coordination, and greater use of land‑based finance tools such as developer obligations and strategic land management.
Energy Efficiency and Renovation Efforts
Both nations pursue energy‑efficiency programmes: Czechia’s PANEL+ and Warm Housing initiatives, and Poland’s TERMO and Clean Air Act measures. These provide subsidies covering up to 50‑60 % of retrofit costs for eligible households, with additional boiler‑replacement schemes. Despite these efforts, residential energy consumption remains above EU averages, indicating further potential for decarbonisation.
Social Housing for Vulnerable Groups
Targeted programmes address homelessness, migration, and ageing. Czechia’s upcoming Housing Support Act (expected 2026) proposes 115 contact points and “guaranteed housing” rental‑intermediation for low‑income households. Poland’s “Overcome Homelessness” and “Housing First” initiatives aim to increase supported and training housing, especially for people with disabilities, older adults, and refugees from Ukraine. However, waiting lists remain long—median two years in Czechia and over a year in Poland—reflecting insufficient supply.
Outlook and Recommendations
The report recommends:
- A universal legal definition of social and affordable housing to ensure consistent eligibility and rent‑setting across all funding streams.
- Strengthened spatial‑planning governance, including faster permit issuance and density bonuses for affordable units.
- Expansion of land‑based finance tools and a shift from area‑based to value‑based property taxes to generate sustainable funding.
- Increased public‑private partnerships and dedicated funds (e.g., NRB’s EUR 80 million co‑financing vehicle) to scale up affordable‑rental construction.
- Enhanced awareness campaigns and simplified application procedures for renovation subsidies, targeting both private owners and vulnerable tenants. By implementing these actions, Czechia and Poland can improve housing affordability, boost sustainable construction, and better meet the needs of vulnerable populations, contributing to broader European goals of inclusive and climate‑resilient housing.