Budapest’s housing crisis in focus: What about the worsening situation in Debrecen?

As Hungary’s housing crisis dominates the headlines, the focus remains firmly on Budapest, where rental costs consume up to 60% of monthly incomes. However, the overlooked city of Debrecen faces its affordability struggles, with a house price-to-income ratio consistently worse than the capital’s for much of the past decade.

Everyone focuses on Budapest

As G7 writes, the housing crisis in Budapest has reached critical levels, with rental costs consuming 50–60% of monthly incomes, according to Hungary’s Ministry of National Economy. Responding to Airbnb’s call to protect hosts’ rights, the Ministry of National Economy attributed surging property and rental prices partly to Airbnb-driven investments.

To tackle affordability, the government unveiled plans to ban new short-term rentals in Budapest for two years starting in 2025, quadruple flat taxes on private accommodations, regulate rental fees, and revive the stalled Budapest Diákváros dormitory project. Critics argue the government’s sudden focus is politically motivated, with elections looming in 2026, and point to its prior neglect of the housing crisis. Meanwhile, opposition leaders, including Gergely Karácsony, face accusations of failing to fulfil earlier housing promises, adding to the contentious debate.

Debrecen remains overlooked

The Hungarian National Bank’s latest report on the housing market challenges the government’s focus on Budapest’s housing crisis, revealing nuanced data on affordability across Hungary. While Budapest has seen significant price increases in recent years, affordability has improved since 2021, with the capital’s housing market faring better than several European cities like Berlin and Sofia. Interestingly, Debrecen, often overlooked in government narratives, has a house price-to-income ratio that has consistently been worse than Budapest’s for much of the past decade. Additionally, while rents remain a concern in Budapest, the affordability of rental properties compares favourably internationally. This highlights the complexity of housing challenges across Hungary and raises questions about the government’s selective prioritisation of affordability issues.