Czechia

In Czechia, homeownership is the dominant form of tenure, with about 75% of households owning their accommodation. The private rental sector is comparatively small, covering approximately 18% of households. Only about 1.4% of households live in subsidized (publicly owned) housing, and just 0.4% of dwellings are classified as true social housing—a notably low share even compared to other Central European countries. The median price to buy an apartment in Czechia in 2025 is estimated at roughly €3,400 per m² nationwide, with Prague ranging from €5,600 to €6,500 per m², Brno from €3,200 to €3,600 per m², and regional cities around €2,000 to €2,600 per m². Median monthly rents are estimated nationally at approximately €13–15 per m², with Prague’s rents closer to €20–24 per m². Publicly owned housing (municipal or state) is not synonymous with social housing. Public housing includes any municipally owned apartments, much of which is rented at market rates or to households not in financial need. Social housing, however, refers specifically to dwellings reserved for vulnerable or low-income residents at below-market rents, and its availability is restricted due to limited stock and inconsistent local policies. Municipalities have autonomy over both types, which creates significant regional disparities in access and eligibility.

Czechia faces a persistent housing crisis marked by a severe shortage of available homes, particularly in major cities like Prague. Over the past decade, residential property prices in Prague have surged by more than 160%, making it one of the fastest-growing housing markets in the EU. Across the country, house prices have increased by 147% since 2010. In Prague, the number of new homes approved in 2024 (8,191 units) fell well short of the 10,000 needed annually, resulting in a cumulative deficit near 90,000 homes in the capital alone. Nationally, the housing shortfall exceeds 20,000 units, with about half of this deficit concentrated in Prague. Building permit issuance remains slow, as it typically takes up to nine years to approve complex projects, making it one of the longest processes in Europe. Much of the new housing supply is pre-leased or pre-sold to investors, further limiting options for the general population. Rising prices and rents are making homeownership and even renting increasingly unaffordable, particularly for young people, first-time buyers, and lower-income families. The share of rental households is increasing as many are priced out of the purchase market. Incomes, although rising, have not kept pace with housing costs, leading to growing pressure on both buyers and renters. The shortage impacts not only vulnerable groups but also middle-class professionals, families, and key workers.

The Czech government’s current approach to affordable and sustainable housing combines targeted investment, regulatory reform, and public–private partnerships. Recent national targets aim to expand the supply of affordable homes, especially rental apartments for low-income households, young families, and key workers, with a focus on energy efficiency. Key programs include the Affordable Housing Program, managed by the Ministry of Regional Development and the State Investment Support Fund (SFPI). This scheme is allocated around €280 million until 2026 to support construction and renovation of affordable rental housing. The program offers a mix of subsidies (up to 40% of project costs) and low-interest long-term loans (covering up to 65%), with total financing for up to 90% of costs. Eligible applicants include municipalities and private legal entities. Project selection prioritizes developments with building permits so construction can begin quickly. An additional €90 million from the EU’s Recovery and Resilience Facility and partnerships with the European Investment Bank are financing new apartments, including over 700 homes in Prague for public-sector employees. These units are required to meet high energy-efficiency standards, supporting the government’s broader sustainability goals. Legislative changes are also underway to streamline building permits, introduce incentives for social and energy-efficient housing, and limit excessive rent hikes. The overarching objective is to establish consistent and predictable investment in affordable and sustainable housing and help mitigate severe shortages, particularly in urban centers.

Housing cooperatives in Czechia have a long tradition, but their role has diminished significantly since the 1990s. As of 2021, there were around 141,000 cooperative apartments, making up about 3.1% of all housing units in the country—down from a much higher share in previous decades. This decline was driven by mass privatization and the transfer of cooperative flats into private ownership after 1989, as well as the cessation of state support for cooperative housing. Despite this decline, there is renewed interest in cooperative housing, particularly in major cities where property prices are high and access to mortgages is difficult, especially for young families and middle-income groups. Older cooperative apartments remain on average about 15% cheaper than those in private ownership, making them an attractive, more affordable option. Recent years have seen a modest revival in the cooperative sector, with new municipal projects, especially in Prague, targeting middle-income households and key workers. These initiatives are supported at the city level rather than through significant national government programs. At the national level, past state support was key for the development of housing cooperatives, but today, state programs focus on affordable rental and social housing more broadly, rather than directly promoting new cooperative housing construction. Current support for cooperatives is mostly indirect, such as subsidies for energy-efficient refurbishments in existing cooperative buildings. Legislative changes in recent years have updated cooperative laws but have not established new government-backed cooperative housing programs.

Key individuals and organizations in Czechia addressing the housing crisis and supporting affordable, sustainable housing in Prague include government figures like Prime Minister Petr Fiala and Regional Development Minister Ivan Bartoš, who have championed new national funding schemes and legislative reforms. The Ministry for Regional Development, together with the State Investment Support Fund (SFPI), actively manages major public programs and provides financial support and technical guidance to municipalities, while regional centers advise on project preparation and financing models. Prague’s municipal company, Pražská developerská společnost (PDS), leads the city’s own large-scale developments on public land, aiming to build thousands of flats for regulated rent, especially targeting key workers. Major real estate developers such as Sekyra Group, along with international partners like the European Investment Bank (EIB) and Česká spořitelna, implement and finance large brownfield projects and new affordable housing for public sector employees, with all new buildings adhering to high energy efficiency standards. From civil society, the Platform for Social Housing (Platforma pro sociální bydlení) and NGOs such as FORUM play a prominent advocacy role, pushing for legal changes and greater support for marginalized groups. For collaboration, academic partners can include universities with urbanism and social policy research, and Prague’s active startup ecosystem offers proptech and sustainable construction ventures. Collaboration across these sectors promises the greatest impact on affordable and sustainable urban housing.