At a press conference on Hungary’s housing strategy organized by the Oeconomus Economic Research Foundation, Deputy State Secretary for Strategic Affairs at the Prime Minister’s Office Dr Ádám Csepeti outlined how the country’s housing policies have evolved over the past 15 years. External shocks shaped much of this period, he said, but since 2013, Hungary has built a proactive and family-focused housing policy—culminating after 2018 with measures such as the CSOK, Rural CSOK, Green Home Programme, and Baby Expecting Loan.

Despite the war and energy crisis of 2022, the government preserved its core programmes while stabilizing interest rates. The long-term goal is to raise housing investment from around 3.2 per cent of GDP toward the Western European average of 5 per cent.

Hungary aims to stimulate new housing construction—targeting 25,000 to 30,000 new homes a year instead of the current 10,000—and to modernize the existing housing stock by eliminating outdated and energy-inefficient dwellings. Csepeti noted that about 80,000 properties still fall into this category, and the government wants to bring them up to standard.

He emphasized that the Otthon Start Programme specifically supports young people’s independence. It allows workers under 35 to receive up to 150,000 forints per month in housing-related cafeteria benefits from employers, and encourages the use of Hungarian construction materials and companies. For working but financially vulnerable citizens, the programme offers tailored loan structures.

Csepeti rejected claims of a housing crisis: ‘90 per cent of Hungarians live in owner-occupied homes. Energy bills are among the lowest in the EU, and the cost of buying or renting in Budapest is still below that of most regional capitals,’ he said. Average rents in Budapest are around 247,000 forints, compared to 367,000 in Warsaw, while residents in Bratislava spend 57 per cent of their income on housing costs—versus 44.6 per cent in Budapest.

He also pointed to a tripling of household real estate wealth between 2014 and 2023, with the average Hungarian household now owning assets worth around 61 million forints.

The Otthon Start scheme aims to increase the share of young first-time homebuyers from 25–30 per cent to 40 per cent and reduce the average age of first purchase from 28 to 27. With a fixed 3 per cent interest rate, a 20-million-forint loan carries a monthly payment of about 94,000 forints, and a 50-million-forint loan around 237,000—far below market rates of roughly 8 per cent. A young person earning 450,000 forints gross could borrow 31.5 million instead of 19 million at market rates.

‘It’s not just housing policy—it’s a comprehensive social and economic instrument’

To counter criticism that subsidies inflate housing prices, the programme includes several safeguards: no loans for homes above 100 million forints (150 million for houses), and a maximum price of 1.5 million forints per square metre. There are no non-repayable grants to prevent sellers from embedding subsidies into prices. The 20 per cent rule also caps resale prices at 20 per cent above assessed value for homes purchased with Otthon Start loans.

Demand has been strong: over 15,000 applications have been submitted, with an average requested loan of 33 million forints. The total volume already exceeds 450 billion. One-third of applicants are married couples, two-thirds live outside Budapest, and the average age is 34.

To further stimulate construction, an Otthon Start Office has been established to coordinate national projects. From early 2026, legal changes will allow banks to finance apartments at the design stage, rather than only upon sale—a move intended to boost new housing supply and replace outdated stock with energy-efficient homes.

Chief economist of Ingatlan.com László Balogh described both contradictions and opportunities in the current market. Homeownership has long been a tradition in Central and Eastern Europe, he noted, but the Otthon Start announcement has visibly boosted demand.

‘Calls to real estate agents correlate closely with local transaction volumes. In September, demand nearly doubled compared to before the announcement,’ Balogh said. Even in the weakest counties, inquiries rose 10–17 per cent. This ‘chain reaction’ is helping not just new buyers but also those who can now sell their properties.

Average home prices rose 1.2 per cent in August and accelerated in September, but Budapest’s 2.6 per cent growth remains moderate compared to early-year spikes. Eastern Hungary now shows faster price increases than western regions, signalling economic convergence.

Meanwhile, rents in Budapest fell 1.1 per cent in September—the first such drop since the pandemic—driven by the new housing programme. The most expensive districts saw decreases of up to 20,000 forints. However, Balogh warned that shrinking rental yields could discourage investors from buying to let, as government bonds now offer higher returns.

‘In September, demand nearly doubled compared to before the announcement’

Strategic Director at the Oeconomus Economic Research Foundation István Loránd Szakáli called Otthon Start a ‘historically significant measure’ from a geopolitical perspective. ‘It’s not just housing policy—it’s a comprehensive social and economic instrument,’ he said.

He highlighted that the programme is exceptional in Europe for its long-term, strategic design and wide eligibility. While earlier schemes tied benefits to specific family or employment conditions, Otthon Start opens the door to a much broader segment of society.

Hungary’s housing stock, mostly built in the second half of the 20th century, is in need of renewal. The last construction peak was in 1975, with nearly 100,000 homes built—mainly prefabricated panels, which are now seeing a revival. After deep lows in the early 2000s and mid-2010s, state programmes such as CSOK revived construction; Otthon Start is expected to further energize the sector. By 2022 71 per cent of Hungarian homes had full amenities, up sharply from previous decades.

The construction industry, which employed around 425,000 people in 2023, stands to gain further from the programme. Szakáli also noted its potential to integrate marginalized groups, including Roma workers, and to encourage expatriate Hungarians to return home through improved housing opportunities.

Concluding the event, Research Director at Oeconomus Szabolcs Pásztor presented findings from a comparative study across 22 EU countries. The data show a clear correlation: societies with higher rates of homeownership experience lower levels of social polarization. ‘Supporting homeownership is therefore not only an economic goal but a fundamental social interest,’ he said. The full study will be published next week.

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