Analysis: Housing prices have risen more in the last 15 years than wages have increased

Prague – Housing prices in the Czech Republic have risen faster than wages in the last 15 years, and the availability of home ownership has deteriorated. Home ownership has become 158 percent more expensive between 2010 and 2025. This is nearly three times higher than the average in the European Union. Average wages in the Czech Republic have increased by 106 percent since 2010. This is based on data from Eurostat and an analysis by the investment platform Portu. Rents in the Czech Republic increased by 69 percent during the observed period.

According to Portu, the decline in housing availability in the Czech Republic is due to a low supply of new apartments in densely populated areas and strong demand driven by demographic development and rising incomes. Investor interest has also contributed to the rising housing prices.

Housing prices have increased even more than in the Czech Republic since 2010 in Hungary and the Baltic states, namely Estonia, Lithuania, and Latvia. "The significant increase in real estate prices in Central and Eastern Europe has been supported by low interest rates and strong demand for home ownership. This has often led to a faster increase in property prices compared to household income growth," said Portu analyst Lukáš Raška.

According to the latest data from Eurostat, housing prices increased at the seventh highest year-on-year rate in the European Union in the last quarter of last year. Compared to the fourth quarter of 2024, prices rose by 10.4 percent, while the average in the European Union was 5.5 percent. The average wage in the Czech Republic was, according to data from the Czech Statistical Office, 49,215 crowns last year and increased by 7.4 percent year-on-year to 52,283 crowns by the end of the fourth quarter.

An increase in the prices of home ownership was also observed in the first quarter of this year. According to an analysis by the real estate platform Reas.cz, older apartments in the Czech Republic rose by six percent year-on-year to an average of 5.3 million crowns. Family houses cost 6.9 million crowns and increased by three percent over the year. New apartments in Prague are the most expensive. According to an analysis by Central Group, Skanska Residential, and Trigema, apartments in Prague's development projects were offered at the beginning of the year for 182,311 crowns per square meter, which is a 2.6 percent increase quarter-on-quarter and nine percent year-on-year.

The availability of housing has significantly deteriorated for many in the Czech Republic in recent years, according to a study by the Organisation for Economic Co-operation and Development (OECD). It states that real estate prices and rent levels in the Czech Republic have significantly risen in recent years, putting increasing pressure on the budgets of many households. The lack of affordable housing particularly affects young families, seniors, and vulnerable groups.

However, at the end of last year, the availability of purchasing a home improved according to Reas. In the last quarter of 2025, people were able to pay off a mortgage for an apartment of 44.3 square meters with an average wage. This is 2.6 square meters more than six months earlier. The availability of home ownership varied among regions, being lowest in Prague and highest in the Ústí nad Labem Region.