Budapest housing crisis: Rising rents, stagnant wages and high inflation are making it harder for residents to find affordable homes. The city is investing $60m in new measures, but will it be enough?
#BudapestHousingCrisis #RisingRents #AffordableHousing #InflationImpact #UrbanLiving #HousingPolicy #RentalMarket
#BudapestHousingCrisis #RisingRents #AffordableHousing #InflationImpact #UrbanLiving #HousingPolicy #RentalMarket
Category
🗞
NewsTranscript
00:00Zacharias Jelicnik and Julia Hourani wanted to stay in Budapest, but their search for a new apartment in the city proved challenging.
00:08I think we were quite lucky, actually, to be able to sell this flat, right? That's fair to say.
00:14So there weren't too many people looking at it.
00:17Housing experts say high inflation, stagnant wages and steep mortgage rates have pushed many potential buyers to rent instead,
00:26driving up demand and prices in Budapest's rental market.
00:29A joint report by the Hungarian Statistical Office and ingotland.com shows rental demand has risen by 14% this year compared to last.
00:40The financial potential of those people who want to rent an apartment is not growing in that pace as the prices are going up.
00:53It means that there is a huge stock which is not rented out because less and less people can afford rentals, for example, in Budapest.
01:06Budapest, once known for its affordable living, has become Europe's ninth most expensive city for rentals, driven in part by rising demand from investors.
01:15In early 2024, 4 in 10 buyers purchased properties in the city as investments, according to a Hungarian national bank report.
01:24Some areas like District 5 near the city center and others on the west side of the Danube have seen the biggest rent increases.
01:34One-bedroom apartments in those areas now average over $1,000 a month.
01:41Meanwhile, the city of Budapest has announced new measures to address its housing crisis, committing $60 million to the effort.
01:48The plan includes $5.5 million from EU funds to expand affordable housing and $23 million to renovate rentals and convert empty properties and the creation of a new housing agency.
02:02Recently, a central Budapest district announced it would ban short-term rentals starting in January.
02:09Shortly after presenting the plan, experts said rental prices began to drop.
02:14However, the decision has sparked mixed reactions.
02:17We can see that in other cities where they did the same regulation, it not solved the problem for affordable apartments.
02:28So that problem was not solved with banning short-term rent or Airbnb.
02:33With an additional mortgage, Julia and Zacharias fulfilled their dream of a larger apartment for their four children.
02:41But for many in Budapest, the rising cost of housing is forcing them to seek homes outside the city, trading the vibrant heart of the capital for more affordable horizons.
02:52Pablo Gutierrez, CGTN, Budapest.