Czechia slips in EU Prosperity Index as housing crisis deepens

Czechia has fallen one spot in the EU Prosperity and Financial Health Index, sliding from 15th to 16th place amid a worsening housing crisis that is undermining broader quality-of-life indicators.

The annual index, produced by Česká spořitelna and Europe in Data, highlights long-standing strengths in healthcare and cybersecurity—but notes growing pressure from unaffordable housing, a sluggish digital rollout, and environmental shortcomings.

The Nordic countries continue to dominate the top of the rankings, with Austria breaking into the highest tier for the first time.

With soaring property prices, cumbersome construction procedures, and surging utility costs, the country now ranks among the six worst in the EU for housing. Once a relative bright spot, the affordability of rental housing has declined to match the EU average, leaving younger generations particularly exposed.

“Young people are the biggest victims of the housing crisis. Without family help, owning a home is increasingly out of reach. And renting offers little long-term security,” said Martin Lux of the Czech Academy of Sciences.

The country also underperformed in entrepreneurship and environmental sustainability, ranking 22nd out of 27 in both. Analysts point to high industrial emissions, low startup activity, and weak capital markets. A surge in electricity prices—tripling over the last three years—has further strained businesses.

On the digital front, Czechia lags behind in high-speed internet coverage, with only 54 percent of the territory connected. The sole digital bright spot: mobile networks, where 5G coverage reaches 96 percent of the population.

Still, the Czech Republic climbed to ninth place in financial health, up from 13th, largely due to improved household savings. “Higher-income households began saving more during the pandemic, and this was sustained by higher interest rates, which in Czechia exceeded the EU average,” said Tereza Hrtusová of Česká spořitelna.

Czechia also took the top spot in the health and safety pillar, buoyed by accessible healthcare, low infant mortality, and strong cybersecurity—offering some reassurance in an otherwise mixed picture of national prosperity.