Budapest’s living costs soar: Affordable rents don’t mean easy life for residents

Budapest remains more affordable than many Western European capitals when it comes to rental prices, yet the overall cost of living is increasingly stretching household budgets. While three-bedroom city-centre apartments in the Hungarian capital are far from the world’s priciest, the rapid rise in basic expenses (housing, utilities, and essential services) has outpaced wage growth, which leaves many residents feeling the strain.

Global rental trends: Budapest is relatively affordable

A joint survey by Numbeo and Deutsche Bank compared last year’s rental prices for three-bedroom city-centre flats across more than fifty global cities. Unsurprisingly, New York topped the list in 2025, reflecting both its high cost of living and tight housing supply. Major Western cities such as London, Zurich, and Geneva also remain exceptionally expensive, with monthly rents in the thousands of euros. Asian hubs, including Singapore, Sydney, and Dubai, similarly report high rental costs, Pénzcentrum writes based on the survey.

The data highlight that while top-tier economic centres demand high rents, many other cities worldwide are significantly more affordable. Outside developed nations, particularly in parts of South Asia and Africa, three-bedroom rentals are considerably lower, even after adjusting for local income levels.

Why rent alone doesn’t tell the whole story

Crucially, rent alone does not provide a full picture of affordability. In many locations, wages lag behind housing costs, forcing households to devote a large share of their income to rent. Within Europe, this trend is especially pronounced for lower-income residents. Western European capitals such as Berlin and Munich, where monthly rents for comparable apartments can reach USD 2,700 and USD 3,400, respectively, are far costlier than Central European cities like Prague or Vienna. Paris stands out at approximately USD 3,600, nearly three times Budapest’s level.

According to Deutsche Bank, Budapest’s three-bedroom city-centre apartments average around USD 1,300 per month. While this is cheaper than Prague, Vienna, or Warsaw, residents still face rising expenses. The average gross salary in Budapest reached HUF 835,457 (EUR 2,195) during the first nine months of 2025 (above the national average of HUF 691,228), but even this is frequently insufficient to cover living costs comfortably.

Budapest residents feel the squeeze despite higher wages

Housing remains the single largest expenditure. Renting a flat can cost roughly HUF 250,000 per month, while a single room goes for HUF 80,000–110,000. Mortgage repayments average HUF 136,000–137,000, with utilities adding another HUF 49,000, potentially more during extreme seasonal temperatures. Other necessities, including transport, food, insurance, subscriptions, and banking, strain budgets further. Those with private cars and city-centre rentals can easily reach monthly costs of HUF 560,000, surpassing the net average salary. (EUR 1 = HUF 380)

Survival on an average wage requires compromise

Budapest residents can survive on an average wage, but it often requires compromise. Choices around housing type, transport, loans, and spending management are decisive for maintaining a sustainable standard of living. Lower rental prices do not automatically translate into easier affordability, and the city’s cost pressures mean a growing challenge for its residents.

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