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Shocking Trends: Cost of rent in Budapest and nationwide goes through the roof
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Rent in Budapest saw a 1.8% increase in March, as per the KSH-ingatlan.com rent index, with a nationwide uptick of 0.8%, based on the KSH-ingatlan.com rent index. Year-on-year comparisons reveal a staggering 11.7% surge in national rent prices and a 12.4% spike in the capital.
By mid-April, average monthly apartment rent in Budapest hovered around 270,000 HUF (EUR 684), fluctuating across districts from lows of approximately 180,000 HUF (EUR 456) to highs nearing or exceeding 380,000 HUF (EUR 963).
According to 444.hu, rents in county towns ranged from HUF 90,000 (EUR 228) to 220,000 (EUR 558). Recent data suggests a challenging rental market, with national monthly price increases slowing to 0.8% from February’s 1%, while the cost of rent in Budapest witnessed an acceleration from 1.1% to 1.8%, as noted by László Balogh, chief economist at ingatlan.com.
The economist also stated that the national monthly rent growth is primarily driven by constraints on purchasing power rather than inflation, attributing the rise in rents to wage increases.
Cost of rent in Budapest and nationwide
This trend may explain why the average cost of rent in both Budapest and Debrecen has crossed psychological barriers. The average rent for available apartments in Budapest stands at 270,000 HUF (EUR 684), with smaller flats under 40 square metres averaging 185,000 HUF (EUR 469).
Balogh observed that if wage growth continues at a similar pace, Budapest could expect an average rent of around 300,000 HUF (EUR 760) next year. He also mentioned recent government initiatives such as Youth Guarantee Plus and Housing Allowance 2024, introduced this spring, which may alleviate some pressure from the escalating cost of rent in Budapest and nationwide.