Study finds Czechs renting smaller apartments for the same price as in 2019

The ongoing economic challenges in the Czech Republic are having a noticeable impact on the rental housing market. According to a survey by Generali Investments, tenants today are renting significantly smaller apartments compared to 2019, despite paying the same amount. On average, Czechs now rent apartments that are 16 square meters smaller for the same price.

This shift in rental affordability comes as rising energy costs, inflation, and high interest rates put increasing pressure on household budgets. While there have been signs of economic stabilization, over a quarter of Czechs continue to cut back on their housing expenses, the survey revealed.

Czechs Cutting Back on Housing

The survey, conducted by Generali Investments CEE in September, highlights that 25% of Czechs are reducing their housing demands due to the ongoing economic strain. Factors such as energy prices, inflation, and interest rates remain elevated compared to pre-pandemic levels.

“Although the economic situation in the Czech Republic has improved slightly compared to previous years, we are still far from pre-COVID levels. However, it is worth noting that fewer people are reducing their housing demands this year compared to last,” said Marek Bečička, Director of Real Assets at Generali Investments CEE.

Rental Market Downsize: 2019 vs. 2024

The deterioration in the rental market is clear. In 2019, tenants in Prague could rent a 65-square-meter apartment for CZK 20,000. Today, for the same amount, renters can only secure a 49-square-meter apartment. This represents a 16-square-meter reduction in living space, according to data from the Czech Statistical Office and Deloitte.

The survey’s findings reflect a broader trend of shrinking apartment sizes as the economic squeeze continues to impact Czech consumers, especially in major cities like Prague. While the situation has shown some signs of improvement, many households remain under pressure, forced to make sacrifices in their living arrangements to cope with rising costs.