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Czechia needs more homes. Can a new Building Act help solve the housing crisis?

Senators will debate a controversial Building Act amendment today that aims to speed up construction and ease the housing shortage.

Expats.cz Staff ČTK

Written by Expats.cz Staff,  ČTK Published on 20.08.2026 09:53:00 (updated on 20.08.2026) Reading time: 4 minutes

Housing
Shutterstock by Tatiana Diuvbanova
Shutterstock by Tatiana Diuvbanova

Prague has a housing problem that is increasingly difficult to ignore: There are not enough homes being built to meet demand, and the shortage is helping push prices and rents beyond the reach of many residents.

The International Monetary Fund says Czechia's worsening housing affordability reflects a structural imbalance between supply and demand, with construction constrained by slow permitting procedures and fragmented municipal decision-making.

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The problem is particularly acute in Prague, where buying a standard 70-square-meter apartment requires roughly 13–15 years of gross annual income.

Now the government says it can help address the problem by changing the system that decides what gets built. A controversial amendment to the Building Act goes before the Senate on Thursday.

#For members #Housing #mortgages #real estate #rent
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