Housing affordability in the Visegrad Four (V4) countries has deteriorated significantly in recent years. According to a new international analysis, this is a deep-rooted structural problem with common causes and manifestations across the region.
Prague / Bratislava / Budapest / Warsaw – The capitals of the Czech Republic, Slovakia, Hungary, and Poland are now among the least affordable housing markets in Europe. They share a low proportion of public housing alongside high real estate prices and rents, creating a fundamental mismatch between household incomes and housing costs. As a result, homeownership and stable tenancy are becoming out of reach for an ever-growing share of the population.
The authors of the analysis note that the crisis has deeper historical and systemic roots. After 1990, all countries in the region underwent extensive privatisation of their housing stock and a gradual retreat of the state and municipalities from the housing sector. At the same time, a model based almost exclusively on homeownership and market mechanisms took hold. Combined with globalisation and the growing role of real estate investment, housing has progressively transformed from public infrastructure into an investment commodity.
This shift has concrete consequences across society today. The problem no longer affects only low-income groups — it is increasingly felt by the middle class, young households, and families with children. In Poland, for example, a significant share of households falls into a so-called rental gap: they do not qualify for social housing yet cannot afford market-rate rent or a mortgage. Similar tensions between income and housing costs are evident throughout the region.
Although housing is declared a political priority in all four states, concrete action remains limited. Policies are heavily dependent on electoral cycles; programmes are frequently changed or suspended, and long-term strategies are rarely implemented in a systematic way. Public policy tools exist, but their impact is marginal compared to the dominance of the private market.
The analysis — conducted by non-governmental organisations — also highlights that the problem is not simply a shortage of new construction. In the V4 countries, new housing projects are often aimed at higher-income groups or investors and therefore do not, on their own, improve affordability. Without accompanying measures — such as comprehensive strategies, dedicated funding mechanisms, and genuine political commitment to expanding non-market and municipal housing or curbing speculative demand — the impact of new construction remains limited.
There are, however, positive examples and alternative approaches. Local initiatives are emerging across the region, demonstrating different ways of providing housing — from Housing First programmes to municipal rental agencies and cooperative or community-based housing models. These projects remain largely isolated, however, and lack systemic support.
According to the authors, the core issue is the mismatch between the scale of the problem and the scope of available solutions. While new strategies, pilot projects, and policy initiatives have emerged in recent years, their impact has so far been limited. "We see movement, but no relief," they summarise the situation across the region.
The analysis argues that resolving the housing crisis requires a fundamental shift in approach. Strengthening public and non-profit housing, introducing more stable rental market regulation, curbing speculative investment, and making better use of spatial planning tools should all play a central role. Equally important is empowering municipalities and supporting community initiatives that can complement both the state and the market.
The publication will be officially presented in Prague on 16 May at the festival Za Prahu! and is available for download at: https://arnika.org/nedostupne-bydleni-v4
Quotes from the authors:
Václav Orcígr, Arnika (Czech Republic):
"Housing is not unaffordable today because construction is lacking. The problem is that most new construction targets investors and higher-income groups — not those who actually need it."
Lýdia Grešáková, Spolka (Slovakia):
"Municipalities have a responsibility, but they lack the tools and capacity to act. Without stable funding, data, and state support, they cannot address the housing crisis at the scale required."
Csaba Jelinek, ACRED (Hungary):
"More than 90% of public spending on housing does not reach those who need help. This shows that the problem is not only economic — it is also political."
Maja Zabirzewska, Miasto Jest Nasze (Poland):
"Unregulated short-term rentals drive up the cost of living for permanent city residents. Poland is facing a housing crisis that primarily affects young people and those entering the labour market. Its root cause is not simply a physical shortage of housing, but above all drastically high prices — for both renters and prospective buyers."
The project is co-financed by the governments of Czechia, Hungary, Poland and Slovakia through Visegrad Grants from the International Visegrad Fund. The mission of the fund is to advance ideas for sustainable regional cooperation in Central Europe.
