Survey: Rents rose for half of people over the past year, a quarter cannot afford further increases

Prague – Rents have risen for almost half of people in the Czech Republic over the past year. Four in ten Czechs expect further increases, while a quarter of the population cannot afford any rise at all. These are the findings of a survey by Generali Investments made available to the Czech News Agency (ČTK). According to the survey, limited budgets are forcing people to compromise on some of their requirements or move into smaller flats. In Prague, for example, the same amount of money now rents a flat half the size of one available five years ago.

More than 1,000 respondents in the Czech Republic took part in the survey.

According to Generali, more than a quarter of Czechs live in rented accommodation, the highest proportion among the Visegrad Four countries. In Prague, almost half of residents rent their homes, while roughly a third of people aged 18 to 34 do so. A quarter of respondents across the Czech Republic have seen their rent rise by more than five percent, and one in ten by more than ten percent.

Rising housing costs have forced one in seven tenants to move into a smaller flat over the past three years. According to the data, CZK 20,000 a month now rents a 43 m² one-bedroom flat with a kitchenette in the capital, compared with an 83 m² two-bedroom flat with a kitchenette five years ago.

Twenty-nine percent of Czech tenants spend more than CZK 15,000 a month on housing, excluding energy costs, the highest proportion among the Visegrad Four countries. Prague is the most expensive, with almost six in ten tenants paying more than this amount. In the Central Bohemian Region, more than half pay over CZK 15,000 a month. In most regions, however, rents most commonly range from CZK 9,000 to CZK 12,000. They are highest in regions with major cities, such as the Plzeň Region or the South Moravian Region, which includes Brno. The Zlín Region is the cheapest.

According to the survey, four in ten tenants expect conditions in the rental market to deteriorate further and prices to keep rising. In cities with more than 100,000 inhabitants, one in two respondents expects further increases. "Rising rents mean not only higher household expenses, but also a gradual loss of the living space people can afford for their money. Those who do not want to or cannot pay more have to compromise on size, layout or location," said Marek Bečička of Generali.

If rents were to rise, some people would adjust their budgets. For example, 28 percent would rather cut other spending than leave their current flat. Almost a third, by contrast, would move, whether to a cheaper neighbourhood, a smaller flat or another city. Nine percent would choose to move back in with family or friends.

The survey also shows that raising rents will be difficult. A quarter of tenants already cannot afford to pay much more. Almost six in ten Czechs could manage an increase of no more than CZK 1,000 a month, and eight in ten could manage CZK 2,000. One in four tenants also fears they will be unable to afford their rent in the future, while a further six percent already struggle to pay it.

A third of tenants are also unable to save for a home of their own, and another fifth have to postpone buying one. Across the Czech Republic, 16 percent of people are unable to save, with tenants more than twice as likely to find themselves in this situation.