Real Estate in Prague: Why Young Families Struggle to Buy or Rent a Home
Prices, mortgages, rent, and demographics: how Prague became unaffordable for locals
Over the past twenty years, Prague has transformed from a charming European capital into one of the most expensive cities in Europe when it comes to real estate. The question of buying or renting a home has long since ceased to be a matter of personal choice - it’s become a social quest, where only the wealthiest, most persistent, or... foreigners from developed countries win the prize.
Prices That Shock the Soul
Back in 2005, the average price per square meter in Prague didn’t exceed 45,000 CZK. Today, in the first half of 2025, this number is climbing toward 168,000 CZK. For the same amount in Rome - a city with an equally rich history - one can purchase a home in a comparable district without compromising on lifestyle. The difference? For an Italian with a Milan salary, Prague is an affordable exotic. For a local Czech? A luxury, unattainable even with a solid education and a stable job.
According to statistics, the average Czech family would need to save for more than eleven years to buy a 70 m² apartment. In Poland or Hungary, it’s "only" seven to nine years. And that’s not even factoring in the cost of living, children, or life’s unexpected turns.
Renting as a Temporary Lifeline
One might assume that renting is the logical solution. But even there, Prague outpaces the rest of the country. In the second quarter of 2024, the average rent per square meter reached 408 CZK. Tiny studio apartments - once symbols of independence - have become the compromise between survival and dreams.
Young people are giving up on saving for a mortgage. Many prefer to spend money on travel, beauty, and experiences. They simply don't believe they’ll ever own a place of their own.
Demographics: A Silent Crisis
The Czech birth rate is falling. In 2023, it was just 1.45 children per woman. The link with housing insecurity is undeniable. Young couples hesitate to have children while renting cramped studios. They postpone, they hope, they search, but the market is not on their side.
High mortgage interest rates and harsh bank conditions only make things worse. The Czech National Bank, while protecting macroeconomic stability, is inadvertently feeding the crisis of inaccessibility.
Who’s Winning? Foreigners from developed countries
Prague has become a haven for investors. Germans, Italians, Americans buy up entire buildings - as assets, as vacation homes, as trendy investments. For them, Prague is cozy and cheap. For locals - an inaccessible display window.
While native Prague residents struggle in rented flats, Ukrainian refugees often live in tiny shared rooms - nicknamed “bed-spaces” on social media. Several people to a room, no privacy, no comfort. Why? Because decent jobs are only to be found in big cities - hard, underpaid work, but work nonetheless.
Is There Hope for Change?
Society is beginning to demand reform. One realistic solution may lie in limiting short-term rentals (like Airbnb) to 90 days per year. If such legislation passes, thousands of units could return to the long-term market. Rents would drop. People could afford to live in better neighborhoods for the same money - or in larger flats.
But if nothing changes, the status quo will remain. Young people will go on living in 25 m² micro-apartments, with no real hope for improvement. The birth rate will continue its decline. And Czech voices will become ever rarer on Prague’s streets.
This is no longer just an economic question. It’s a question of the country’s future.