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.
Mind-blowing increases in 2025
Housing affordability in Hungary, including in Debrecen, faces potential challenges by 2025, with experts predicting property price increases of up to 20%, outpacing projected wage growth of 7–8%. This trend, highlighted by Habitat, underscores the need for systemic solutions rather than short-term fixes. The NGO advocates for targeted support measures, such as rent subsidies, municipal housing, and strengthening social rental systems, to address the disparity between rising housing costs and slower income growth. Without sustainable reforms, affordability issues will likely persist, affecting cities like Debrecen as much as Budapest.
Read also:
- Shocking: Renting in Hungary’s cities leaves workers empty-handed!
- Hungary’s housing market sees revival with rising prices and mortgage demand, central bank reports
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