Housing Affordability in Cities in the Czech Republic

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While the full effects of the COVID-19 crisis on housing affordability in cities in the Czech Republic remain to be seen, the pandemic has reinforced the urgency of tackling pre-existing challenges, such as a consistent shortage of housing supply in cities and structural obstacles for urban households to access affordable housing. While the Czech national government has taken a number of emergency measures to help people keep their homes during the COVID-19 crisis, this report recommends that Czech national and local governments need to implement both direct and indirect policy instruments more effectively to shape a more sustainable and inclusive urban paradigm. Direct policy instruments consist in targeting housing affordability specifically, for example by providing more social housing to households most in need. Indirect instruments such as local land-use planning can help increase the supply of affordable housing. This report also contains the results from an innovative survey that the OECD and the Ministry of Regional Development conducted on more than 1 800 municipalities to collect data on the housing market and housing policies at the municipal level.



The report Housing Affordability in Cities in the Czech Republic comes at a critical time. Across OECD economies, housing costs have been absorbing an increasing share of household income, reaching 31% for the average middle-income household. The Czech Republic is no different in this respect, with house prices rising by 43% since 2013, almost twice as fast as in the OECD on average. Many people are therefore increasingly struggling to afford decent housing, particularly in cities where demand is outpacing supply.


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