Hungarian youngsters go abroad because of lower rental prices

444.hu reports that the problem of immigration because of education or better employment prospects has been a longstanding issue in Hungary. However, an event organised by László Vértesy, associate professor of the Civitas Institute, collected further reasons for why Hungarian youngsters go abroad. Among these, lower rental prices are the most significant motives.

Living with one’s parents is the ideal solution

You would never guess that the housing situation is so terrible in Hungary that it is better to rent a flat in Berlin or even in London. Here is why. At 1st glance, the Hungarian youth might be more satisfied with the current economic situation since compared to 2011, revenues increased by 20%. It seems to be good news, but at the same time, personal consumption expenditures also augmented. This involves higher prices for fuel, eggs and of course, for housing as well.

The average rental price in Hungary in 2016 was 85,600 Ft (285.3 euros) while in Budapest, this was around 120,000 Ft (400 euros). Meanwhile, the average net wage was 175,000 Ft (583.3 euros).

The situation is aggravating because it is mostly students who need to rent flats during their tertiary education and if they do not find any affordable flats, they have to move back to their parents’ home. Furthermore, if their parents finance their lease, they have to spend 69% of their monthly revenue on it having only a little bit more than 50,000 Ft (167 euros) in their pockets.

7 out of 10 students live with their parents

According to the research conducted by Eurostat, Hungarian students are better exposed to the risk of poverty and social exclusion than the average (37%). In Hungary, living together with one’s family is so popular among students between 17-29, that it is only the Mediterranean countries that have greater results. 74% of Hungarian youngsters live with their parents, while this percentage is 26% in the United Kingdom and 23% in Germany.

The reason for the popularity of living in one’s parents’ home is that based on the research, those who stay with their family are less likely to suffer from poverty compared to those who have moved out quite early. This phenomenon common in Hungary is also called Mama Hotel.