Shocking: Hungary saw the EU’s number 1 housing cost increase
Experts believe households face financial problems if they have to pay 40% or more of their average income for housing. In some regions of Hungary, that expenditure is even higher than 50% because the number of newly-built houses and apartments is not enough in Hungary, and the Hungarian government did not feel the need to enter that market segment to reduce costs. Instead, the Orbán cabinet launched programmes that boosted real estate price increases. The result is the EU’s nr 1 housing price increase between 2015 and 2023.
Housing crisis in Hungary
The Hungarian government did not officially acknowledge that there was a housing crisis due to the high rental and property prices until the end of 2024. Instead of launching programmes to build affordable housing solutions and helping to decrease the prices, they poured incredible money into some segments of society before the 2022 elections and began programmes that provided money e.g. to families raising children, which resulted in an immense property cost rise.
According to a European Parliament report, all Europeans struggle with rising housing prices, but the Hungarian rate is outstanding within the community. Between 2015 and 2023, the average increase in property prices was 48% in the European Union. However, that rate was 173% in Hungary, the EU’s highest, while only 5% in Finland, the community’s lowest. Here are the relevant and shocking infographics from the document:
People leave their parental homes early in Hungary
Interestingly, the average age when people leave their parental home is not high in Hungary. Data shows that an average Hungarian youth leaves their parents at the age of 27.1, just like in Poland. However, that age is higher in Spain (30.4), Portugal, Ireland, Italy, Slovenia, Croatia, Romania, Bulgaria (30.0), Slovakia, Malta, and Greece. HERE you may read the full report.
The rise of property costs continue
According to Duna House, property prices continue to rise in Hungary. That is true for apartments and houses, apartment blocks, regardless of whether they were built from brick or concrete. At a 2024 November conference, experts agreed that tremendous money could be transferred to the housing sector this year because one of the most popular Hungarian government security expired, and 20% of those assets could be spent on buying property. That means people are looking for investment opportunities with more than HUF 1,300 billion (EUR 3.2 billion) in their pockets.
Read also:
- Rental market paradox: Steep prices meet falling demand in Budapest
- From Buda to Debrecen: Hungarian property market sees rapid surge in 2025