Czech Housing Market: Why Northern Regions Are 3x Cheaper Than Prague

Housing in Prague: Why Affordability Is Becoming a Problem

The Czech housing market may be reshaped by emerging trends. Housing in Prague is becoming less affordable for both local and foreign buyers, highlighting a growing imbalance across Czech regions. According to a recent analysis by RE/MAX, an average monthly salary in Prague allows buyers to afford just 0.47 square meters of an older apartment. By contrast, in Ústí nad Labem, located in the northwest of the country, an average salary can purchase approximately 1.25 square meters.

This difference shows how access to housing varies significantly across regions. While Prague remains the economic center of Czechia, it is now one of the least affordable cities in Europe in terms of housing. For many residents, purchasing even a modest second-hand apartment is increasingly out of reach without substantial savings or financial support from family.

Property prices are rising faster than incomes

The main driver behind this affordability crisis is the rapid rise in property prices, which has far exceeded wage growth over the past decade. Housing prices in Czechia have increased by around 120%, while average salaries have risen by only 90% during the same period.

In Prague, the average price for older apartments reached nearly CZK 137,000 per square meter at the end of 2025. New apartments are even more expensive, averaging CZK 177,000 per square meter, with most in-demand districts such as Prague 1, Prague 2, Prague 6, and Prague 7 reaching up to CZK 300,000 per square meter.

The Organization for Economic Cooperation and Development  (OECD) analysis shows that as prices rise, more families face budget constraints. Young families, and especially younger generations are feeling the impact of rising house prices. For this reason, many Czech couples, when possible, choose to move into a home that one partner already owns instead of buying a property together.

 Brno follows Prague’s trend

Brno, the second-largest city in Czechia, reflects a similar trend. Despite lower average salaries compared to Prague, housing prices remain high. New apartments in Brno cost around CZK 145,000 per square meter, making homeownership difficult for many residents.

According to Jan Hrubý, CEO of RE/MAX Czechia and Slovakia, both Prague and Brno continue to attract strong demand due to job opportunities, higher incomes, and developed infrastructure. However, this demand is precisely what keeps property prices elevated, further widening the affordability gap. As a result, major urban centers are becoming increasingly inaccessible to average earners.

Northern regions offer more affordable alternatives

In contrast, northern regions of Czechia provide significantly more affordable housing options. Towns such as Horní Slavkov, Bílina, Habartov, and Litvínov offer property prices of around CZK 25,000 per square meter, making them attractive alternatives for buyers seeking better value.

The Ústí nad Labem Region ranks as the most affordable area in the country, followed by the Karlovy Vary and Olomouc regions. In these areas, an average monthly salary can cover close to one square meter of housing.

Experts suggest that upcoming infrastructure projects, including a planned high-speed rail connection between Prague and Ústí nad Labem, could further increase interest in these regions.

A shift toward affordability over urban living

As housing costs continue to rise in major cities, smaller towns are increasingly seen as a possible solution to avoid financial pressure. While large urban centers still attract people due to stronger job markets and economic opportunities, limited housing supply keeps prices high.

Experts warn that the concentration of economic activity in major cities, combined with slow housing development, will likely sustain this trend in the coming years. Due to this situation, more buyers, particularly younger generations, are expected to prioritize affordability over urban living.

This shift could gradually change the Czech housing market, encouraging more people to consider regions outside traditional urban hubs. A new trend is taking shape: affordability will be key for younger generations, even if that means looking elsewhere.

Resource: https://www.expats.cz/