Thursday, 22 October 2026
Homeownership is becoming an increasingly distant prospect for many Czech households, as rising property prices and expensive mortgage financing force prospective buyers to reconsider their long-term plans. More than 60% of people who do not own residential property believe they are unlikely to purchase a home, while a further quarter have postponed their buying decisions. The findings come from research published by Generali Investments on 21 October 2026, based on responses from more than 1,000 people in the Czech Republic and approximately 3,000 participants across Slovakia, Poland and Hungary.
The research indicates that concerns about housing affordability have become considerably more widespread over the past seven years. Almost nine in ten Czech respondents now anticipate further difficulties in purchasing residential property, compared with approximately six in ten in the earlier survey. Expectations surrounding future prices are also pessimistic, with around 75% believing property values will continue increasing at a similar pace, while only 9% expect prices to decline. The results suggest that households are increasingly adjusting their financial and personal plans to the possibility that purchasing a home may remain difficult for an extended period.
According to Mark Bečička, CEO of Real Assets at Generali Investments, the findings reflect a change in how households assess their future housing opportunities. Rather than expecting affordability to improve within a few years, a growing proportion of respondents appear to be making decisions based on the assumption that current market pressures will continue. This change in expectations could influence household formation, saving behaviour and demand for rental accommodation, particularly among younger adults.
Approximately 65% of Czech respondents currently live in homes they own, representing the lowest ownership proportion among the four Visegrad countries included in the survey. Another 25% live in rented accommodation, while the remaining 10% share housing with relatives or acquaintances. The findings also indicate that younger people are spending longer periods living with their parents. Among respondents under the age of 34, approximately one-quarter remain in the family home, while the overall proportion of people living with parents has reportedly doubled over the past two years.
The difficulty of accumulating savings is becoming another obstacle for prospective purchasers. Around 16% of Czech respondents reported having no money available at the end of the month to put towards buying a property, compared with approximately 11% a year earlier. This increase suggests that household expenditure is limiting the ability of some people to build the deposits required for mortgage financing. For first-time buyers, the combination of rising property prices and insufficient savings can create additional difficulties even before monthly mortgage repayments are considered.
The financial comparison between renting and purchasing has also become less favourable in the eyes of many Czech households. Only 27% of respondents considered buying a property with a mortgage more financially advantageous than renting, the lowest proportion recorded among the Czech Republic, Slovakia, Poland and Hungary. In Slovakia, more than one-third of respondents expressed the same view. The difference highlights how financing expenses and property values are influencing attitudes towards ownership across Central Europe.
Changes in Prague’s residential market illustrate the scale of the affordability challenge. According to Generali Investments, property prices in the Czech capital have increased by approximately 40% over the past five years, while mortgage interest rates have moved from around 2% to levels approaching 6% during that period. Higher property values require larger loans, while increased borrowing costs raise the monthly repayments associated with those loans. The combined effect has made purchasing residential property substantially more expensive for households entering the market.
The average mortgage amount has increased from approximately CZK 3.2 million five years ago to around CZK 4.6 million today. Based on the illustrative calculations presented in the research, monthly repayments over a 30-year period have risen from approximately CZK 12,900 to CZK 25,500. This represents an additional monthly commitment of around CZK 12,600. Although actual mortgage payments depend on individual borrowing arrangements, the comparison demonstrates how significantly the financial requirements associated with purchasing a home have changed.
Household earnings have not increased at the same pace as these illustrative mortgage costs. The survey reports that average wages rose by approximately 33% over five years, while the calculated monthly mortgage repayment increased by 97%. Five years ago, the repayment represented less than half of the relevant net wage measure, compared with almost two-thirds today. This difference has reduced the relative affordability of mortgage-financed housing, particularly for households purchasing their first property without substantial existing savings or financial support.
Concerns about future interest rates are adding to the uncertainty. Approximately 70% of Czech respondents expect mortgage rates to increase before the end of 2026, compared with around one-third who anticipated higher rates two years earlier. These expectations are particularly relevant for existing borrowers approaching the end of a fixed-interest period, when their mortgage terms may be revised according to prevailing lending conditions. The survey reflects public expectations rather than an independent forecast of interest rates, but it illustrates the degree of concern surrounding future housing expenditure.
The research also suggests that many mortgage holders have limited financial flexibility. More than half indicated that an increase of over CZK 2,000 in their monthly repayment would be difficult to manage when their interest rate is reset. Approximately one in six respondents with mortgages reported having no capacity to absorb any increase, while another 38% could accommodate no more than CZK 2,000. These findings indicate that even relatively modest changes in borrowing expenses could require some households to reduce spending elsewhere.
Despite these pressures, existing homeowners remain strongly committed to retaining their properties. Only 2% of mortgage holders surveyed said they would consider selling their home and moving into rented accommodation if interest rates increased further. This suggests that many households continue to regard ownership as an important long-term priority, even when maintaining mortgage payments places additional demands on their finances. It also indicates that higher borrowing costs may not necessarily result in a substantial increase in homes being offered for sale.
For residential developers, the findings point towards a market where demand for housing remains significant but the financial resources available to prospective purchasers are increasingly constrained. Smaller apartments and properties with lower overall purchase prices may attract greater interest from buyers seeking to limit their mortgage commitments. However, developers must balance affordability against land prices, construction expenditure and financing costs. Delivering smaller homes may reduce individual purchase prices, but it does not necessarily address the wider difference between household incomes and residential property values.
The changing expectations surrounding ownership could also influence the development of professionally managed rental housing. If more households delay purchasing or conclude that ownership is financially unrealistic, demand for rented accommodation may remain supported over the longer term. This could create opportunities for institutional investors and residential developers considering rental-focused projects, particularly in Prague and other major employment centres. Nevertheless, additional rental demand would need to be matched by sufficient housing supply to avoid placing further pressure on accommodation costs.
The Generali Investments research highlights a growing divide between the aspiration to own residential property and the financial capacity to achieve it. Rising purchase prices, larger mortgage commitments and limited household savings are influencing decisions across different age groups, while younger adults increasingly face the prospect of remaining in shared or family accommodation. For developers, investors and the wider residential property market, the findings suggest that affordability will remain a central consideration in determining future housing demand, development strategies and investment opportunities.
Source: CTK
