Housing Market Trends and Affordability in Central Europe: Insights from the Czech Republic, Slovakia, Austria, and Poland

Housing Market Trends and Affordability in Central Europe: Insights from the Czech Republic, Slovakia, Austria, and Poland

Článek WoS

This study examines housing affordability trends in Central Europe, focusing on the Czech Republic, Slovakia, Austria, and Poland, in the wake of recent global disruptions including the COVID-19 pandemic, the 2021-2022 energy crisis, and the war in Ukraine. These events have intensified housing affordability challenges by driving up property prices, rental costs, and energy expenses. Using data from December 2022 to March 2023, the paper analyzes wage levels relative to housing costs in major cities-Prague, Brno, Bratislava, Vienna, Graz, Warsaw, and Krak & oacute;w-through price-to-income and rent-to-income ratios. The findings reveal that affordability is most strained in Czech cities, particularly Prague, where property prices outpace wages, while Vienna demonstrates better affordability due to higher average incomes. The study integrates real estate platform data with official statistics and employs spatial mapping and exploratory econometric testing to identify affordability patterns and disparities. It concludes that affordability outcomes are shaped by wage dynamics, housing supply constraints, migration pressures, and policy responses. The study underscores the importance of targeted housing policies and wage interventions to address these challenges and highlights the need for cross-country policy learning and regional coordination to improve housing affordability and market resilience across Central Europe.

This study examines housing affordability trends in Central Europe, focusing on the Czech Republic, Slovakia, Austria, and Poland, in the wake of recent global disruptions including the COVID-19 pandemic, the 2021-2022 energy crisis, and the war in Ukraine. These events have intensified housing affordability challenges by driving up property prices, rental costs, and energy expenses. Using data from December 2022 to March 2023, the paper analyzes wage levels relative to housing costs in major cities-Prague, Brno, Bratislava, Vienna, Graz, Warsaw, and Krak & oacute;w-through price-to-income and rent-to-income ratios. The findings reveal that affordability is most strained in Czech cities, particularly Prague, where property prices outpace wages, while Vienna demonstrates better affordability due to higher average incomes. The study integrates real estate platform data with official statistics and employs spatial mapping and exploratory econometric testing to identify affordability patterns and disparities. It concludes that affordability outcomes are shaped by wage dynamics, housing supply constraints, migration pressures, and policy responses. The study underscores the importance of targeted housing policies and wage interventions to address these challenges and highlights the need for cross-country policy learning and regional coordination to improve housing affordability and market resilience across Central Europe.

central European real estate market, housing affordability, property price trends, wage disparities, rental market dynamics, urban housing challenge, energy crisis and housing costs

central European real estate market, housing affordability, property price trends, wage disparities, rental market dynamics, urban housing challenge, energy crisis and housing costs

MATĚJKOVÁ, J.; TICHÁ, A.

2026

20.05.2025

Buildings

15

10

Švýcarská konfederace

1

29

29

https://www.mdpi.com/2075-5309/15/10/1729