Shocking Trends: Cost of rent in Budapest and nationwide goes through the roof
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.
These plans offer social rent subsidies aimed at helping young people and job seekers in finding housing and employment opportunities.
Supply data for April reveals notable discrepancies across districts. Notably, District V emerges as the most expensive, with rents reaching up to HUF 380,000 (EUR 963). Among districts with high availability, Districts XI and XIII closely align with the capital’s average rent, settling around 270,000 HUF (EUR 684). On the contrary, Districts XVIII and XXI offer more affordable options, with rents below the HUF 200,000 (EUR 507) mark.
Shifting the focus to the county market, Debrecen emerges with the highest average rent, surpassing the 200,000 HUF (EUR 507) threshold by mid-April, clocking in at an average of 220,000 HUF (EUR 558).
Following closely behind are Győr, Székesfehérvár and Veszprém, where rents range between HUF 176,000 (EUR 446) and 180,000 (EUR 456). Conversely, cities like Miskolc, Salgótarján and Békéscsaba offer more budget-friendly options with rents falling between HUF 90,000 (EUR 228) and HUF 100,000(EUR 253).
In the evolving rental market landscape, new data reveals interesting changes and challenges regarding the cost of rent in Budapest and nationwide. The significant rise in average rents in March, particularly pronounced in the capital, raises concerns about housing affordability and availability. Balogh’s insights underscore a complex interplay between rising rent prices, purchasing power and wage dynamics, suggesting a need for a nuanced approach to address these issues effectively.
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