Budapest

1. Budapest is home to the largest thermal water cave system in the world, making it a popular destination for spa enthusiasts who can enjoy natural thermal baths throughout the city. 2. The city has a unique ruin bar culture, where abandoned buildings and lots have been transformed into eclectic bars and clubs, offering a mix of art, music, and social spaces that reflect Budapest's vibrant nightlife. 3. Budapest boasts a rich literary heritage, having produced numerous Nobel Prize-winning authors, including Imre Kertész and János Szentágothai, and is known for its thriving literary scene, including the famous Book Café located in the historic Alexandra Bookstore.

Budapest's housing market in mid-2025 is experiencing robust growth, with residential property prices up 6–17% annually and average prices reaching €2,800–3,100 per square meter. Recent figures indicate a strong demand, a tight supply, and high investor activity, with investors representing 40–45% of buyers. Annual rental rates have also increased, with a median monthly rent for long-term apartments typically between €13–€15 per square meter. Short-term rental markets, such as Airbnb, show a strong average occupancy and an average daily rate of €63, translating to approximately €1,379 in monthly income for landlords. Homeownership remains prevalent in Budapest, with recent statistics suggesting about 87% of residents own their homes and roughly 13% rent. Publicly owned or social housing accounts for a marginal share of the market—less than 2% of the total housing stock. The public housing sector in Budapest is shrinking, often in poor condition, and not synonymous with broader European models of social housing. In Budapest, "public housing" generally refers to municipally owned rental apartments, which are limited and intended for the most vulnerable groups. These differ from broader social housing models that may encompass a larger share of affordable housing managed by public, private, or non-profit entities.

Budapest’s housing crisis is marked by sharply rising property prices and rental costs outpacing income growth. In 2025, residential property prices rose by nearly 19–21% year-on-year, with the average apartment costing around €185,800. New builds have exceeded €3,200 per square meter, making homeownership increasingly inaccessible. Rental prices have also surged, particularly affecting younger residents who now allocate 40–60% of their income towards rent, and the median rent now stands over €11 per square meter. Affordability is further worsened by high energy prices, contributing to increased instances of energy poverty and financial stress among households. The crisis disproportionately affects low-income households, young people, renters, students, and vulnerable populations. These groups spend a significant portion of their income on housing and utilities, often struggling to cover both. Marginalized communities, including the Roma, minorities, and families with several children, face additional barriers due to discrimination and a lack of suitable housing options. Public social housing is severely limited, accounting for less than 2% of the overall housing stock, with most units in poor condition and only the most at-risk groups, such as the homeless or extremely low-income families, able to access them. The overwhelming demand for affordable housing amid a shrinking public sector and rapid price escalation means housing insecurity, exclusion, and the risk of homelessness have all risen in Budapest in recent years.

Budapest’s city administration has strengthened its focus on affordable and sustainable housing since late 2024, signaling a greater willingness to intervene and leverage European Union funds. The city’s most prominent initiative is the AHA Budapest (Affordable Housing for All) project, which aims to increase the supply of social rental housing by converting unused public buildings into energy-efficient homes for vulnerable groups. The program combines extensive renovations, a revolving energy retrofit fund, and a data-driven early warning system to identify households at risk of energy poverty or eviction. Launched in 2024, its milestones include opening a dedicated housing assistance office, the renovation and occupation of a pilot building by mid-2026, and the publication of a scalable financial model. The municipal assembly has also formally requested central government and EU structural funding for expanding municipal rental stock and prioritizing energy-saving renovations. There is political support for tighter regulation of short-term rentals, such as reduced permit durations for tourist flats, to free up more homes for residents. Government and municipal debates have focused on further integrating social housing with affordable private options, strengthening the rental sector, and piloting innovative financing through civil-NGO and public-private partnerships to repurpose vacant buildings. The targets communicated stress an inclusive, near zero-energy housing stock, stronger safety nets for at-risk groups, and long-term systemic change enabled by cross-sector cooperation. However, progress is incremental and faces hurdles in funding, regulations, and scaling up impact.

In Budapest, **housing cooperatives** (lakásszövetkezetek) represent a traditional but highly limited segment of the city’s housing stock. Their presence in the overall market is marginal, with recent municipal and sector figures indicating that cooperative and publicly owned housing together account for less than 2% of all residential units in the city. The number of new cooperative homes or ventures is very low, and there is scant sign of sectoral growth or revival. Most cooperative housing in Budapest was established during the socialist era, primarily as a vehicle for privatization or quasi-private ownership. Since the 1990s, these structures have been largely overtaken by private condominium associations, which function more as collective maintenance and governance bodies than as true housing cooperatives in the Western European sense. As a result, cooperative housing in Budapest is not a significant source of affordable or innovative accommodation. Recent municipal efforts have focused not on expanding the cooperative sector, but on supporting energy-efficient renovations and green upgrades for both condominiums and remaining housing cooperatives. Key programs include non-refundable grants and low-interest loans for building refurbishment, green space improvement, and energy modernization, such as the Budapesti Zöld Panelprogram. These supports are accessible to both traditional cooperatives and other collective ownership entities. There are currently no major city-level policies or initiatives aiming specifically to relaunch or enlarge the cooperative housing sector as a distinct pillar of affordable housing.