It now takes longer to buy a home in Budapest than in London
According to a recent European study, Budapest now ranks among the ten most expensive major cities in terms of housing costs: on average, a person would need 11.4 years’ worth of the average salary to purchase a new 70-square-metre home in the Hungarian capital. Based on Deloitte’s 2024 Property Index, Budapest surpasses cities such as London, Milan and Copenhagen in this regard. Among regional cities, Debrecen also ranks higher than Turin and Odense.
According to the data, Amsterdam, Athens, and Prague are the most difficult cities in which to afford such properties, requiring up to 15 years of average income. By contrast, the most affordable cities on the list (Turin and Odense in Denmark) offer the possibility of securing a 70-square-metre flat after just five years of work.
The study is based on data from 2024 and does not factor in the impact of the government’s Home Start Programme. According to analysts, the introduction of a 3% fixed-rate mortgage could drive up housing prices by as much as 18–20% this year, significantly more than the previously forecast 15%.
Rental market: Slowing growth, but rents remain high
According to the joint rental index from Ingatlan.com and the Hungarian Central Statistical Office, rental price increases have slowed: nationally, rents rose by just 1.1% in August compared to July, and by 0.7% in Budapest. However, compared to the same month last year, rents in the capital are still up by 7.2%.
The biggest increases outside Budapest were seen in Pest County (8.8%) and the Southern Great Plain region (11.9%). Debrecen remains the priciest city outside the capital, with an average rent of HUF 240,000 (EUR 613). In contrast, tenants will find the most affordable rents in Szolnok and Miskolc, where prices average HUF 130,000 and 125,000 (EUR 332 and 320), respectively.
Demand in the rental market has dropped: according to data from Ingatlan.com, nearly 20% fewer people inquired about rental listings in August compared to the previous year. One reason for this is the government’s Home Start Programme, which is leading many to consider purchasing instead. The trend suggests further deceleration in rental price growth, even as the overall housing market continues to become more expensive.
What does this mean for house-hunters?
Buying a home, whether in Budapest or elsewhere, now requires long-term financial planning: in the capital, purchasing a mid-sized flat demands more than a decade of average earnings, while in Debrecen this figure is nearly nine years. Although rent hikes are slowing, high rental costs still pose a serious financial burden for many young people and families.
Experts say that in the coming months, housing affordability and rental trends will largely depend on the actual impact of the Home Start Programme and fluctuations in mortgage interest rates.
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If you can’t afford something, you don’t buy it, or you look at alternatives. You don’t HAVE to live in Budapest. These days most types of education can be gotten online and increasingly many jobs, especially in the services sector, allow at least a hybrid work pattern. Try the ‘burbs or, better still, go out into the country: Quality of life is far higher there.
I agree. Keep moving further from Budapest in a westerly direction. It’ll get cheaper and cheaper the further you move, eventually, you’ll end up moving over the border and then can go get a job for 3x local salary, then you’re really laughing.