When comparing the first quarter of 2023 with 2010, house prices increased more than rents in 18 EU countries.
Over this period, house prices increased in 24 EU countries and decreased in three. They more than doubled in Estonia (+200%), Hungary (+180%), Lithuania (+146%), Latvia (+132%), Luxembourg (+126%), Czechia (+123%) and Austria (+122%). Decreases were observed in Greece (-14%), Italy (-9%) and Cyprus (-2%).
For rents, prices increased in 26 EU countries and decreased in one, with the highest rises in Estonia (+212%) and Lithuania (+165%). The only decrease was recorded in Greece (-22%).
I did the maths on my parent’s first home, which they brought in the early 80s for the equivalent of €35,000 when adjusted for inflation. Today, the same house sells for more than ten times that amount. Within one generation, we’ve made it so that one home for boomers now costs the equivalent of an entire street of houses for their children.
Don’t look at what’s going on in Canada.
In Prague rent prices went more than double as well. And compared to our average salary, people can’t really afford buying their own. The median salary is some 34,000 CZK (1,427 EUR) while the smallest of flats (which are suitable pretty much only for a single person) cost upwards of 8 million CZK (336,000 EUR). If you want a flat that can support a family and provides some living space (let’s say upward of 80 sq. meters), you’re looking at 15 million CZK (630,000 EUR).
It’s almost scary how true it is. We were planning to buy an apartment here with my wife in the future, but now thinking about just moving to a different country for a decent living. Sounds extreme (the hardest part is leaving all the friends and family behind), but we really want to live like normal human beings. Thanks to remote job for the opportunity.
I was also quite surprised when I shared a room in the night train with a Czech guy, that he pays the same for his room in Prague as I do in Germany. Truly Insane when you compare salaries and I guess students also get less allowance/state support than in Germany
The house prices decreased in Italy? I don’t think so. I followed the market for more than two years and I can see an increase.
They decreased over the past 13 years.
