- Hans Weber
- December 4, 2023
Housing Trends and Financial Dynamics: A Gendered Perspective in Czech Rental Market
Despite their higher incomes, it’s interesting to note that men tend to rent smaller housing. Approximately 16% of men reside in apartments with an area of up to 40 m2, whereas around 10% of women opt for similar-sized apartments. A notable portion of both genders, 39% of women and 37% of men, allocate a third or more of their income towards rent. The average cost of renting an apartment in Prague stands at 20,000 CZK, as revealed by the CREDITAS Real Estate survey, which engaged 1,050 individuals living in rental accommodations.
Shared by both men and women is their shared perspective on rent pricing and its spatial dimensions. The factor holds equal importance for all parties—83% of respondents regard it as a pivotal criterion when selecting a rental apartment. A common ground is also found in the preference for long-term renting, which is favored by roughly 40% of both genders. Additionally, aspirations for property ownership align as 43% of men and 41% of women have intentions to acquire their own homes in the future. Jiří Vainer, CEO of CREDITAS Real Estate, underscores the steadfast desire for personal housing despite the challenges posed by high real estate costs and mortgage loan interest rates.
A preference for simplicity is noted among men, as evidenced by the survey findings. Furnished apartments garner increasing interest, especially among men who often reside alone, thereby requiring less space. This choice streamlines the setup and upkeep of their homes. Nearly a quarter of men fall into the single category, primarily within the 40 to 50 age bracket. In contrast, women are more inclined to live in larger families (45%), while solitary living accounts for merely one in ten. This divergence in housing size preferences mirrors the distinct needs and perspectives of each gender. Men, often living independently, gravitate toward smaller apartments for pragmatic reasons, while women prioritize space and comfort for their families.
Discrepancies between the genders in housing-related financial commitments are minimal. Both men and women—39% and 37%, respectively—dedicate at least a third of their income to rent. Women are more likely than men to have experienced a rent increase in the past year, with the apartment size playing a role. However, the prospect of relocating to smaller or more affordable accommodations is low, spanning less than 10% for both genders. Consequently, there is no discernible trend towards downsizing in Czech households.
Rent prices have stabilized, a trend illustrated in the analysis by RE/MAX, a real estate firm, regarding rental costs. The average rental price per square meter in Prague was approximately 348 crowns in June. This reflects an 8% increase from the previous year but a 2% decrease from the prior quarter. The mean cost of renting an apartment in Prague was 19,300 crowns. This stability benefits tenants who have faced notable rent hikes lately, although landlords may not share the sentiment. The equilibrium stems from balanced supply and demand, alongside a market situation that curtails price escalation. Notably, rental demand has receded compared to the prior year, influenced by reduced home purchase interest rates and immigration. However, specific segments like small apartments remain highly sought after, and in some areas, demand still surpasses supply.
The regional scenario depicts rents around 222 crowns per square meter outside Prague, constituting a 4% increase from the past year and a 2% surge from the previous quarter. Renting an apartment beyond Prague amounts to an average of 11,400 crowns.
Turning to the broader European context, rental housing forms a portion of the housing sector. Comparing the data and statistics with the overall market and European norms reveals interesting insights. According to recent Eurostat figures, roughly 6% of Czech households allocate over 40% of their income to housing costs. This slightly falls below the European average, as the EU norm stands at 8%. Among European nations, Greeks dedicate the highest portion of their income to housing, while Cypriots, Irish, and Hungarians experience the least financial strain in this regard.
The predominance of homeownership within Czech households contributes to relatively affordable housing costs in the country. Owner-occupied housing accounts for 78% in the Czech Republic, in contrast to around 50% in Germany and Austria. Another factor mitigating housing expenses is the prevalence of Czech households still repaying mortgages with historically low interest rates. This scenario, however, is expected to change when these loans mature in the near future. It’s important to note that the latest Eurostat data does not yet reflect this impending shift, nor does it account for the recent upswing in energy consumption over the past six months.
Article by Prague Forum