Housing in Prague and the Central Bohemian Region has become dramatically more expensive over the past 10 years

Mortgage payments have risen nearly fourfold, wages only about twofold

Housing affordability in Prague and the Central Bohemian Region has deteriorated significantly over the past ten years. Although interest rates have gradually started to decline after 2023, apartment prices are rising again and the overall financial burden associated with mortgages remains historically high.

According to long-term data, the average monthly payment on an 80% mortgage with a 30-year maturity increased from approximately CZK 5,300 in 2015 to more than CZK 20,000 in 2025. This represents an almost fourfold increase, while wages over the same period roughly doubled.

Mortgage payments are rising faster than incomes

In 2015, a mortgage payment accounted for around 20% of the average gross salary. Today, the situation in Prague and its surroundings is significantly worse.

• Prague (2025): mortgage payment ≈ 51% of the average salary

• Central Bohemian Region: the share has long remained above 40%

The worst situation occurred in 2022, when high interest rates pushed the share of mortgage payments up to nearly 57% in Prague. Although rates have since fallen and wages are growing faster than before, housing affordability is still much worse than it was ten years ago.

Apartment size and monthly burden

Differences in monthly payments by apartment size have remained surprisingly stable in Prague and the Central Bohemian Region for several years:

• small apartments (up to 46 m²): around CZK 14,000 per month

• medium apartments (46–67 m²): approximately CZK 17,000

• large apartments (over 67 m²): roughly CZK 26,000

Although apartment prices fluctuated, changes in interest rates partly offset these swings. Thanks to wage growth, the share of mortgage payments relative to income has slightly decreased compared to 2022, especially for small and medium-sized apartments.

Prague vs. Central Bohemian Region: buying or renting?

In both regions, buying a property with a mortgage is currently significantly more demanding than renting.

Prague:

• mortgage payment ≈ 50.7% of salary

• rent ≈ 35.6% of salary

Central Bohemian Region:

• the gap between rent and mortgage payments is smaller than in Prague,

• but purchasing still represents a higher monthly burden than renting.

  
  

The rental market remains more stable in the long term – rents grow at a similar pace as wages, so their share of income does not change dramatically over time.

How many annual salaries does an apartment cost in Prague and its surroundings?

Ten years ago, purchasing an average apartment in Prague required about 9.3 annual salaries. Today, this figure has risen to approximately 12.3 annual salaries. The situation in the Central Bohemian Region is slightly more favorable, but even there the number of required salaries has increased significantly.

Income differences play a crucial role:

• lower-income households need more than 16 annual salaries to buy an apartment in Prague,

• higher-income earners can manage with roughly 9 annual salaries.

  
  

What does this mean?

Housing in Prague and the Central Bohemian Region remains one of the largest financial commitments a household can face. Although the situation has slightly stabilized since 2022 thanks to falling interest rates and faster wage growth, mortgages still place a much heavier burden on household budgets than they did ten years ago.

👉 How are the other regions doing?More details can be found in the source article:https://blog.valuo.cz/za-10-let-se-bydleni-vyrazne-prodrazilo/

Jan Halík

Real Estate Agent

📞 +420 603 377 791

✉️ jan.halik@re-max.cz

RE/MAX Atrium

Podolská 811/138

140 00 Praha 4 – Podolí