Hungary Surpasses EU with Shocking Housing Cost Increase
The housing crisis in Hungary has reached alarming levels, with experts warning that households are facing financial problems if they have to allocate 40% or more of their average income towards housing expenses. In some regions of Hungary, this expenditure exceeds 50% due to a shortage of newly-built houses and apartments. The Hungarian government’s lack of intervention in the housing market has led to a significant increase in real estate prices, making Hungary the EU’s top country in terms of housing price growth between 2015 and 2023.
It wasn’t until the end of 2024 that the Hungarian government officially acknowledged the existence of a housing crisis caused by exorbitant rental and property prices. Instead of implementing programs to create affordable housing solutions and lower prices, the government focused on providing financial assistance to certain segments of society before the 2022 elections, leading to a surge in property costs.
A report from the European Parliament highlighted the staggering increase in property prices in Hungary compared to the European Union average. Between 2015 and 2023, property prices in Hungary rose by 173%, the highest in the EU, while countries like Finland only saw a 5% increase. The data presented in the report is concerning and highlights the urgent need for action to address the housing crisis in Hungary.
Furthermore, data shows that Hungarian youth tend to leave their parental homes at an average age of 27.1, similar to Poland. This is lower than countries like Spain, Portugal, Ireland, Italy, and others where the average age of leaving parents’ homes is higher. The trend of early independence among Hungarian youth adds to the pressure on the housing market, as more people seek accommodation at a younger age.
Property prices in Hungary continue to rise, with experts projecting a significant influx of money into the housing sector. The expiration of a popular Hungarian government security has freed up resources that could be directed towards buying property, leading to an estimated EUR 3.2 billion being available for investment in the housing market. As the rise in property costs shows no sign of slowing down, it is essential for the Hungarian government to address the housing crisis and implement effective solutions to ensure affordable housing for all citizens.
