The gap between mortgage payments and rent in Czechia keeps growing

In every region of Czechia, renting a home in the second quarter of this year turned out to be cheaper than paying a mortgage on a comparable flat — and the difference often runs into several thousand crowns a month. That's according to mortgage experts from Hypodům and Broker Trust, who compared monthly housing costs for average properties across the country.

"The days when a mortgage payment was more economical than rent are gone for good," says Hypodům mortgage expert and Broker Trust partner Radek Slavík. According to him, interest rates have climbed from around 2% to over 5% in recent years, while property prices have surged. In major cities, monthly rent today is often only half the cost of a mortgage payment.

Where the gap is widest

The disparity is most pronounced in Prague, where the mortgage payment on an average flat exceeds rent by nearly 20,000 crowns a month. In the South Moravian Region, the gap reaches around 11,000 crowns. In the Central Bohemian Region, closely tied to the Prague market, a mortgage costs on average about 9,000 crowns more than renting.

As recently as early February this year, the gap was far less pronounced, but the mortgage and housing markets have shifted noticeably since then — largely due to the geopolitical situation. "Housing finance is very sensitive to geopolitical events," notes Broker Trust mortgage expert Libor Ostatek. He predicts that if the cost of money keeps rising, rates could exceed 6% by the end of the year.

The gap isn't dramatic everywhere: in the Ústí, Karlovy Vary and Moravian-Silesian regions, the difference between mortgage and rent payments remains relatively small. In the Ústí Region, a mortgage was actually slightly cheaper than renting at the start of the year — the payment was 642 crowns lower. Now the situation has flipped: mortgage holders there are paying an average of 1,366 crowns more than renters.

Mortgage vs. rent: what's really the better deal

Experts warn against comparing mortgages and rent directly. As David Eim, deputy chairman of the board at Gepard Finance, explains, rent should be compared not to the entire mortgage payment but only to its interest portion — the rest isn't a housing expense at all, but repayment of a loan on your own property. Still, for many people, what matters isn't the ultimate financial gain but simply whether they can afford the monthly payment — and renting is often more accessible on that front.

Petr Hána, director of the real estate and construction department at Deloitte, points out that beyond the payment itself, buyers need to factor in their own funds covering 10–20% of the property's value, plus interest, legal fees, furnishing, renovations, insurance and taxes. According to him, a mortgage suits families with a stable income, a financial cushion, and plans to stay put for the long haul, while renting is better suited to those who need flexibility.

Prices are climbing everywhere

According to the Czech Statistical Office, between 2023 and 2025 the average flat price in Prague rose by almost 27%, in Brno by roughly 28%, and nationwide by 23%. According to the Sreality portal, older flats in the Pardubice Region got 24% more expensive over the past year, and price growth stayed below 10% in only four regions of the country.

Rents are climbing too: according to the Deloitte Rent Index, rental prices in Czechia have more than doubled since 2014, and over the past year alone, per Sreality, rents rose in every region — in the Moravian-Silesian Region, the increase reached a full 12%. That said, the market is starting to stabilize: in Prague, rent growth is slowing down — according to Hana Kontrišová, manager of industry services at Seznam.cz, prices are likely bumping up against the limits of what tenants can afford.

Bezrealitky.cz spokesperson František Brož notes that in Prague, advertised rental rates have leveled off just above 450 crowns per square meter, with landlords starting to lower prices to hold on to good tenants. He predicts rents will keep rising mainly in Hradec Králové, Pardubice and České Budějovice, while trends in Karlovy Vary, Ústí nad Labem, Jihlava and Zlín are harder to call.

Read also: Rental scams in Prague: how to spot a fraud

Source: seznamzpravy.cz