PRAGUE HOUSING CRISIS: HOW RESIDENTS ARE COPING
Living in Prague has become increasingly unaffordable, with both rents and property prices skyrocketing over the past three years. According to Deloitte, renting a standard 70 sqm apartment now exceeds CZK 30,000 per month, up from under CZK 24,000 just a few years ago. Buying isn’t any easier, a flat in Prague 2 currently sells for over CZK 16.7 million, nearly CZK 3 million more than in 2022. The sharp rise in demand, limited housing supply, and speculative interest have made the capital inaccessible for many. As a result, some residents are leaving for suburban areas or smaller cities like Hradec Králové or České Budějovice, where housing is up to 50% cheaper. Even high-end suburban homes are more affordable than small apartments in the city center, fueling the migration away from Prague’s escalating costs.
Living Small: Microapartments and Basements
With affordability slipping further out of reach, many are turning to smaller, more compact living spaces. Microapartments, tiny, functional homes under 30 sqm, have become a popular option. Developers are shrinking unit sizes while adding communal spaces to maximize livability. Since 2014, one-room apartments have doubled, and the average apartment size in Prague has dropped by 14% over the past decade. Meanwhile, basement apartments, often dark and lacking natural light, are also being snapped up as a last resort. Though only slightly cheaper per sqm, their lower total cost attracts those priced out of standard units. These dwellings now represent a significant portion of listings in the capital, even if they take longer to sell.
Co-Living and Shared Spaces on the Rise
As property prices surge, co-living is no longer just for students. Adults of all ages, including those over 50, are increasingly sharing flats to manage soaring monthly housing expenses. Two- and three-room apartments are in high demand as roommates team up to afford rent. Real estate agents report listings attracting dozens of inquiries daily, reflecting the widespread demand for shared housing. At the same time, innovative rent-to-own schemes are gaining momentum, providing a stepping stone for those unable to secure traditional bank mortgages. With conventional paths to ownership blocked by high prices and burdensome loan requirements, many are choosing this hybrid approach to gradually transition from renting to eventually owning property.
Cooperative and Alternative Housing Solutions
Housing cooperatives offer another promising solution. These models allow groups of individuals to collectively build or buy properties, reducing costs by up to half compared to traditional routes. Over 60 housing cooperatives now operate across the Czech Republic, managing more than 150,000 units. Some are tailored for specific demographics, such as seniors, and provide community-based living with shared services and private residences. Additionally, alternative housing, including caravans, cottages, and modular homes, is on the rise. More than 77,000 people now live in non-traditional dwellings, double the number from 2011. This is a relevant result that represent the real estate shift in the Czech capital.
Youth and the housing crisis
The situation of young people is very complicated, for them it is no longer so easy to make ends meet. High housing costs consume an average of 19% of household income, and utilities like heating and water cost 14.6% of income, far above the national average. For younger residents with lower wages and limited savings, the situation is untenable. Many can’t cover basic emergencies or afford vacations, and their future in the city looks increasingly bleak. Some analysts suggest Prague is showing signs of “deurbanization,” with younger generations relocating to more affordable areas. This shift may have long-term implications for the capital’s economy, demographics, and social structure, as Prague becomes increasingly out of reach for its own youth.
Sources: https://www.expats.cz/
