Housing affordability remains a key challenge for many Poles

Rising housing prices, mortgage costs and lending requirements continue to limit access to home ownership for many households in Poland. According to a survey commissioned by PFR Nieruchomości in May 2026, 55% of respondents said they would not currently be able to purchase a home that meets their needs, even with mortgage financing, highlighting ongoing affordability challenges in the residential market.

High prices remain the main obstacle

Survey respondents identified high property prices as the biggest barrier to home ownership (61%), followed by high mortgage costs (32%) and insufficient creditworthiness (27%). The findings suggest that many households remain priced out of the market due to financial constraints rather than a preference for renting.

Long-term data also illustrates the scale of the affordability challenge. According to Eurostat’s House Price Index, residential property prices in Poland increased by approximately 106% between 2015 and 2024, compared with an EU average increase of around 53%. Poland has been among the fastest-growing housing markets in the European Union over the past decade.

Prices remain high despite slower growth

Data published by the National Bank of Poland (NBP) for the first quarter of 2026 shows that housing prices remain elevated in the country’s largest cities. The average transaction price for a new apartment reached PLN 16,475 per sqm in Warsaw and PLN 15,384 per sqm in Kraków. Among Poland’s major cities, Łódź recorded the lowest average price at PLN 9,758 per sqm, although affordability remains a challenge for many first-time buyers.

While annual price growth has moderated compared with previous years, economists at Credit Agricole expect housing prices in Poland’s largest cities to increase by up to approximately 5% during 2026. As a result, affordability pressures are expected to remain despite a more stable market environment.

Rental housing gaining importance

PFR Nieruchomości argues that professionally managed rental housing is becoming an increasingly important option for households unable or unwilling to purchase a home.

“High housing prices, mortgage costs and lending requirements mean that home ownership is being delayed or remains unattainable for a growing number of Poles. Professionally managed rental housing can provide an alternative through long-term contracts, transparent conditions and costs that are better aligned with tenants’ financial capabilities,” said Grzegorz Tomaszewski, President of the Management Board of PFR Nieruchomości.

The company recently launched its new rental housing brand, m®, which focuses on professionally managed residential leasing.

Housing preferences continue to evolve

Growing affordability pressures are contributing to gradual changes in Poland’s housing market. While home ownership remains the preferred option for many households, rising purchase costs and stricter lending conditions are leading some, particularly younger people, to postpone buying a home or remain in the rental market for longer.

Compared with many Western European countries, Poland continues to have one of the highest home ownership rates in Europe. Approximately 87% of households own their homes, while renting is considerably more common in countries such as Germany, where more than half of households rent, and Austria, where around 43% of residents live in rented accommodation.

Although Poland’s housing market remains ownership-oriented, continued affordability pressures and the expansion of the institutional private rented sector (PRS) may gradually increase demand for professionally managed rental housing in the coming years.