Rent vs Mortgage: The Gap Is Bigger Than It Seems
- Jan Halik
- 8 hours ago
- 3 min read
Rent vs Mortgage is no longer a lifestyle choice, but a matter of hard math. Although the gap between rents and mortgage payments narrowed slightly over the past year, data across the Czech Republic shows a clear conclusion: in most regions, renting remains thousands of Czech crowns cheaper per month than owner-occupied housing financed by a loan.
📊 Housing as a Pure Economic Calculation
The decision between buying a home and staying in a rental has changed significantly in recent years. While personal preferences and long-term plans once played the main role, today the dominant question is simple: how much will I pay each month?
Just a few years ago, the difference between a monthly mortgage payment and rent was not dramatic, and the answer to which option was more advantageous was not clear-cut. Today, the situation is different. Despite the gradual narrowing of the two amounts, renting remains significantly more affordable in most regions when viewed through the lens of a monthly household budget.
📍 Rent vs. Mortgage in Major Cities: Where the Gaps Are Deepest
The largest differences between the two forms of housing are consistently found in major cities and their surrounding areas.
Prague: the monthly mortgage payment for an average apartment exceeds rent by nearly CZK 15,000
South Moravian Region (Brno): the gap approaches CZK 10,000
Central Bohemian Region: mortgage payments are on average about CZK 6,000 higher than rent
In these regions, the disparity is most pronounced. High property prices continue to keep homeownership out of reach for a large portion of households.
🧮 Where the Difference Nearly Disappears
At the opposite end of the spectrum are regions where monthly costs for renting and owning are much closer.
Karlovy Vary and Moravian-Silesian Regions: difference of around CZK 2,500 per month
Ústí Region: an exception where homeownership is on average about CZK 600 cheaper per month than renting
In these areas, the two options come closest to balance — not because of cheap mortgages, but mainly due to lower property prices.
⏳ The Turning Point After 2020
According to experts, 2020 marked a key turning point. Until then, spending on rental and owner-occupied housing was relatively balanced compared to household incomes.
What followed was a rapid rise in property prices, a sharp increase in interest rates, and overall economic uncertainty. The result was a historic widening of the gap between renting and owning, structural pressure on the rental market, and long-term strengthening of demand for rental housing.
📈 Rents Are Rising, but Not Catching Up to Mortgage Payments
Although rents have increased in recent years, the gap between rent and monthly mortgage payments is closing only very slowly. The main reason is the sharp rise in property prices in 2024 and 2025.
A typical example of a two-bedroom apartment in Prague illustrates how dramatically the situation has changed over ten years: while monthly costs were once nearly equal, today the mortgage payment is more than double the rent.
🔁 A Vicious Circle in the Housing Market
According to experts, the current situation is unlikely to bring a rapid turnaround. A shortage of housing continues to push prices higher, more expensive homeownership drives households into rentals, and this in turn strengthens demand in the rental market.
The result? The gap between the two options remains significant — and unless housing supply increases substantially, it will close only very slowly.
Jan Halík
Real Estate Agent
📞 +420 603 377 791
RE/MAX Atrium
Podolská 811/138
140 00 Praha 4 – Podolí
