Renting a home continues to be more affordable for Czechs than purchasing an apartment with a mortgage, particularly in major cities like Prague and Brno, according to data from real estate platforms and findings by the Czech News Agency. While homeownership remains a strong aspiration for many Czechs, rising property prices and high mortgage costs are making it increasingly unattainable. A recent analysis by real estate platform UlovDomov.cz highlights the stark financial disparity between renting and buying. For a standard 2+kk apartment (60 square meters) in good condition, the average monthly mortgage payment exceeds rental costs by CZK 12,000 in Brno and CZK 16,000 in Prague, including utilities. In Ostrava, however, the difference is much smaller, with mortgage repayments only CZK 600 higher than rental expenses. Despite this, rental affordability varies across cities. In Prague and Brno, renting such an apartment typically costs less than 60% of the average net monthly wage, while in Ostrava and Ústí nad Labem—where property prices are among the lowest in the country—the proportion is even smaller. However, prices in these cities are rising more quickly than in other regions. The gap between mortgage repayments and rental costs is also evident in premium rental properties. According to BTR Consulting, which specializes in the build-to-rent segment, rents for partially or fully equipped apartments with additional services are typically a third cheaper than comparable mortgage payments. For instance, a premium rental property might cost CZK 27,000 per month, compared to a mortgage payment of CZK 40,000 for a similar home. At the start of January, the average mortgage rate decreased slightly by 0.09 percentage points, according to Swiss Life Hypoindex. For a CZK 3.5 million mortgage loan covering up to 80% of a property’s value (LTV) with a 25-year term, the average monthly payment is CZK 20,730. In comparison, the average monthly rent for a 65-square-meter apartment at the end of 2024 was CZK 22,387, according to Bezrealitky’s analysis. A report by the Ministry of Regional Development (MoRD) published last November underscores the growing challenges of housing affordability in the Czech Republic. Property prices have surged by 112% since 2015, while average incomes have only increased by 65%. High mortgage rates further exacerbate the issue, making homeownership increasingly out of reach for many households. At the same time, rental housing is also becoming less accessible due to rising demand. This demand is driven not only by the difficulty of purchasing a home but also by the impact of short-term rental platforms like Airbnb, which reduce the availability of long-term rental properties in major cities. The combination of rising property prices, high mortgage rates, and increasing rents presents significant challenges for both buyers and renters in the Czech Republic. While renting remains the more affordable option for now, the growing demand for rental housing continues to drive prices upward, leaving many households struggling to find affordable housing solutions. Source: ČTK