Housing costs are a significant burden for people across the European Union (EU), especially for those at risk of poverty. According to the latest findings from Eurostat, the European Statistical Office, the housing share of disposable income for people at risk of poverty was 38%, while the EU average was 19% in 2021.

In the Czech Republic, the housing cost to income ratio was 19%, which was 4% lower than Germany but 1% higher than Austria. However, for those at risk of poverty in the Czech Republic, the ratio was over 40%.

The average gross monthly nominal wage increased by 6% year on year in the third quarter of 2022, but due to high inflation, wages decreased by nearly 10% in real terms. The median salary in the Czech Republic was 34,993 CZK (approximately 1476 EUR).

Greece, Denmark, and the Netherlands had the highest average housing costs in relation to income, with Greece being the highest at 34%, while Malta, Cyprus, and Lithuania had the lowest.

Despite the increase in house prices and rents from 2010 to 2021, the number of people living in households with arrears on mortgage, rent, or utility bills in the EU decreased from 12.4% in 2010 to 9.1% in 2021, according to Eurostat. The Czech Republic had one of the lowest numbers at 2.4%.

The COVID-19 pandemic has further exacerbated the housing crisis in the EU, with many people facing job losses, reduced working hours, and other financial hardships. To address this issue, the EU has launched several initiatives, such as the European Pillar of Social Rights, which aims to improve social and employment conditions across the EU, and the Action Plan on the European Pillar of Social Rights, which seeks to strengthen the social dimension of the EU.

In the Czech Republic, the government has implemented various measures to address the housing crisis, such as the State Housing Development Fund, which provides loans to low-income families and individuals to buy or renovate their homes. The government has also introduced a rental subsidy program for low-income households and is working on increasing the supply of affordable housing.

In conclusion, the housing crisis in the EU is a significant problem, especially for those at risk of poverty, with the housing share of disposable income being much higher for them compared to the average. While the EU and the Czech Republic government have taken steps to address this issue, more needs to be done to ensure affordable and accessible housing for all.

Article by Prague Forum