Despite major investments in transport and energy infrastructure during the current parliamentary term, the Czech government has failed to address critical shortcomings in the housing sector, according to leading industry experts. While improvements in the country’s road and rail network have been welcomed, the lack of progress in housing construction—particularly in easing bureaucratic barriers and digitizing permitting processes—remains a pressing concern. Petr Dufek, economist at Creditas Bank, pointed out that the government has not succeeded in reducing the regulatory burden on the construction industry, which continues to hinder new housing projects. “Expectations were high for the digitization of construction proceedings, but these were not fulfilled. As a result, construction activity lags significantly behind domestic demand,” Dufek said. However, he noted that infrastructure investments have helped address long-standing deficits in transport development. Jan Kasl, chairman of the Czech Chamber of Architects, expressed similar criticism, especially regarding the cancellation of the Supreme Building Authority and the disruption to reforms following amendments to the Building Act. According to Kasl, while there was no collapse in the permitting system, the state halted many long-term conceptual reforms. He emphasized the importance of continuing the recodification of spatial planning and praised Minister Petr Kulhánek for recognizing this need. Kasl also voiced support for policies promoting timber construction, an initiative advanced by Minister Lukáš Vlček. Concerns about the lack of systemic solutions for affordable housing were raised by Michaela Váňová, executive director of Central Group. She argued that future governments must prioritize public investment in residential construction and criticized the disparity in institutional support between transport and housing. “Transport infrastructure benefits from a dedicated Transport and Energy Construction Authority. A similar body for housing would be a major step forward,” Váňová said. Housing affordability has also become a focal point in pre-election platforms. The governing coalition TOGETHER has pledged to revive its affordable rental housing program, aiming to facilitate the construction of up to 40,000 new apartments annually. The ANO movement has yet to publish its housing policy, though Vice-President Karel Havlíček has advocated for creating a new Ministry of Economy that would include construction within its remit. Minister Petr Kulhánek (STAN), who succeeded Ivan Bartoš (Pirates) at the Ministry of Regional Development, has maintained support for cooperative and municipal housing initiatives as well as the revitalization of underused housing stock. Other parties, such as SPD, continue to advocate for cooperative housing and subsidized loans for families. The Social Democrats propose the establishment of a state housing fund to deliver 20,000 units annually, backed by an annual budget of CZK 80 billion—equivalent to 1% of GDP—arguing that public investment in housing should match defense spending. As the election season approaches, housing policy is likely to remain a key issue. However, experts caution that without significant structural reforms and streamlined permitting procedures, ambitions to increase housing availability may once again fall short. Source: CTK