Czechia housing prices outpace incomes, fourth-worst in the EU

Between 2015 and 2025, real estate in Czechia grew markedly more expensive than household incomes rose: the ratio of housing prices to income increased by 25.8%. By this measure, Czechia ranks fourth among European Union countries, according to Eurostat data.

The indicator compares changes in property prices with changes in per-capita household income relative to a base year. Compared with 2015, it was higher last year in 17 EU countries, while in the other ten it fell.

Who leads and who trails

The indicator rose most in Portugal (by 60.8%), followed by the Netherlands (34.3%), Hungary (26.5%), Czechia (25.8%) and Spain (24.5%). At the other end of the list is Romania, where it dropped by 42.8%, then Finland (down 25.2%) and Bulgaria (down 16.2%).

An important caveat: these figures show how prices have moved relative to incomes, not which country has the most expensive housing in absolute terms.

Price growth in Czechia has slowed

Residential property prices in Czechia, covering apartments, houses and land, grew more slowly in the second quarter of this year. They rose 8.6% year on year, compared with 10% growth in the first quarter. This comes from an analysis by the Czech Banking Association.

Another way to gauge affordability

There is also a standardized indicator that shows whether the ratio of the property price index to the household income index sits above or below its long-term average since 2000. It helps spot growing imbalances in the housing market early, which is why it serves as a supplementary indicator when assessing macroeconomic imbalances in the EU.

Historically it has had two peaks: in 2007, before the global financial crisis, and in 2022. At those points the ratio exceeded its long-term average by 7.9% and 7.4%, respectively. In between, it declined, and in 2014 it was 6.4% below average before rising again. It fell in 2023 and 2024, and last year it edged slightly above average, by 0.03%.

Housing affordability is also described by other indicators: how many years of income it takes to buy an apartment or house, what a mortgage costs, and the share of housing costs in household disposable income.

Around Prague guide on the topic: Mortgages in Czechia for foreigners: who qualifies and how much of your own money you need

Around Prague, based on reporting by novinky.cz