Ústí nad Labem region offers most affordable housing in Czech Republic

The Ústí nad Labem Region in northwest Czech Republic remains the most affordable place in the country to buy an apartment, according to a new analysis by the RE/MAX real estate network. At the end of 2024, residents earning the average regional salary of CZK 42,203 could afford to purchase 1.47 square meters of an older apartment—making homeownership significantly more accessible than in any other region.

In stark contrast, Prague continues to be the least affordable location for prospective homebuyers. With an average salary of CZK 59,870, it was only possible to purchase around half a square meter of an older flat in the capital. The average price per square meter in Prague reached CZK 112,000 last year, nearly three times higher than in Ústí nad Labem.

RE/MAX Czech and Slovak CEO Jan Hrubý noted that housing affordability across the country remains among the worst in the European Union. He attributed this to sluggish construction rates, an undersupply of new housing, and wages that have not kept pace with property price growth. Over the past decade, real estate prices in the Czech Republic have surged by 123%, while disposable incomes have increased by just 83%.

Hrubý explained that the high housing accessibility in the Ústí Region is largely due to persistently low property prices, influenced by low demand, aging housing stock, and broader socio-economic challenges. Paradoxically, these conditions have made the region an attractive destination for property investors. He added that future investment potential is expected to grow with the planned construction of a high-speed rail line linking Ústí nad Labem to Prague, which would significantly shorten commuting times.

The analysis also identified the Moravian-Silesian, Liberec, and Karlovy Vary regions as areas where average wages still allow the purchase of at least one square meter of an older apartment. According to Hrubý, these regions face similar structural and economic challenges to the Ústí Region, which helps moderate pressure on real estate prices. Among the most affordable towns are Litvínov, Most, Bílina, Chomutov, Orlová, and Karviná.

Meanwhile, the South Moravian Region follows Prague as one of the least affordable areas. In this region, with an average monthly income of CZK 48,804, residents could afford just 0.62 square meters of housing. The situation in Brno, the regional capital, is reportedly even worse than the regional average.

“In Prague, demand for housing is driven by attractive employment opportunities, higher salaries, well-developed infrastructure, and a wide range of civic amenities,” Hrubý explained. “Property prices for new apartments are now so high that only the upper middle class, entrepreneurs, or wealthy foreign buyers can afford them. In the most desirable parts of the city, prices often exceed CZK 200,000 per square meter.”

Due to soaring prices in the capital, buyer interest has shifted to surrounding areas in the Central Bohemian Region. Cities like Kladno, Brandýs nad Labem, and Beroun have seen significant real estate development in recent years. According to the analysis, homebuyers can save up to a third on property prices in these areas compared to Prague and are increasingly opting to commute to the city for work.

Source: RE/MAX and CTK