Home Start Program: Hungarian homebuyer demand hits record high in August
Hungarian housing market demand surged to unprecedented levels in August: according to fresh data from Duna House, the demand index closed at 110 points—a record high in the indicator’s 12-year history.
The spike is largely attributed to the new Home Start (Otthon Start) Program, which officially launched in early September but was already influencing the market in the final month of summer.
Home Start Program shakes up the real estate market
Transaction volumes back up the trend: estimates indicate 11,369 deals were closed, marking a 22% increase year-over-year and a 20% rise from July. This represents the strongest August performance since 2020. According to Duna House lead analyst Péter Szegő, Home Start has generated a “historic shift” and could keep demand at elevated levels for the long haul.
The program is expected to trigger a short-term cyclical effect: September and October are likely to see the biggest rush, potentially followed by a gradual slowdown toward the end of the year—though interest may remain strong through the holiday season. Another wave may hit in early 2026, especially among those unable to take immediate advantage due to administrative or financial delays.
The mortgage market is also heating up. According to Credipass, between 120 and 135 billion forints’ worth of home loan contracts were signed during the summer months. Experts say the favorable loan conditions are generating more activity than ever before.
While homebuying has reached historic highs, Budapest’s rental market is heading in the opposite direction. Rentingo’s analysis shows that in August, average tenant affordability dropped by 8%, falling to a two-year low of 212,000 forints. However, asking rents have remained unchanged: landlords, on average, are still seeking 254,000 forints for city apartments, according to a report by Index.
Why pay more in rent than a mortgage?
The sudden market shift is largely due to Home Start drawing away exactly those renters who were previously willing and able to pay above-average rents. Many are now waiting to purchase homes instead. The withdrawal of this demand segment has significantly dragged down average rental prices, while property owners have yet to lower their expectations.
Looking ahead, another reversal may be in store. Analysts suggest that many homes purchased through Home Start could eventually be used as investment properties. This would expand the rental supply and potentially curb future rent increases. Experts predict that asking prices are unlikely to sustainably exceed the 255,000–260,000 forint range this year.
In short, both the housing and rental markets are undergoing a transformation—but in completely opposite directions. Homebuying interest is unparalleled, while the momentum on the rental front is stalling. The Home Start Program is poised to reshape not just the prospects of would-be homeowners but also the strategies of landlords and property investors in the years to come.
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