Hungary’s Housing Supply Problem: Why It’s Getting Harder to Rent or Buy in 2025
Hungary’s housing supply problem is becoming impossible to ignore. The market is tighter than ever, with demand outpacing supply and prices continuing to rise. As we navigate an unseasonably cold April, the frosted rooftops serve as a fitting metaphor for the state of the country’s real estate: frozen in progress, but heating up in competition. Whether you’re searching for a rental flat in Budapest, buying a family home in the suburbs, or securing a holiday house by Lake Balaton, the path is more challenging than ever before.
A Nationwide Crunch
Budapest remains the focal point of Hungary’s housing challenges. As the country’s largest and most dynamic city, it attracts a wide range of home seekers. But new developments can’t keep up with demand, and prices continue to climb. Beyond the capital, towns like Debrecen, Pécs, and Szeged are also feeling the pinch. Even smaller holiday destinations are seeing a spike in interest, and limited supply only drives prices further out of reach.
What’s more, the number of properties available on the market has dwindled. Many owners are choosing to hold onto their homes, waiting for even greater returns, while investor purchases reduce the number of homes available for individual buyers. For anyone looking to purchase a holiday home, it can feel like trying to find a needle in a haystack. Even when you do spot a promising property, you need to act quickly and know how to navigate the process—because chances are, someone else is just as eager to snap it up.
Frustrated homebuyers confront the harsh realities of Hungary’s dwindling affordable housing supply.
What’s Driving the Shortages?
Several factors contribute to the housing supply issues. Construction delays, stricter building regulations, and rising costs for developers mean fewer new properties are hitting the market. Meanwhile, short-term rental platforms like Airbnb have diverted many properties away from long-term rentals, making it harder for those looking to lease a home for the year. This combination of factors has created a bottleneck, forcing prices upward and limiting options for everyone—from first-time renters to seasoned property investors.
The Hungarian Central Statistical Office (KSH) recently reported that new housing completions fell by nearly 15% in Q1 2025 compared to the previous year. With fewer new builds and increasing demand, the resulting shortage has caused a significant ripple effect across the country’s property market. “The number of completed dwellings in Budapest has dropped substantially, which puts even more pressure on the limited housing stock,” noted a recent KSH housing market update.
At the same time, investors are more active than ever. According to a Hungarian National Bank (MNB) report from March 2025, foreign investment in Budapest’s housing market has increased by 20% year-on-year, which further restricts supply for individual buyers. “This trend is a double-edged sword—while it demonstrates the attractiveness of Hungary’s real estate sector, it also raises barriers for local residents and those looking to settle here,” stated the report.
Resources to Help You Navigate the Market
In my e-book, HOW TO HUNGARY: Budapest & Beyond, you’ll find a wealth of resources to help you tackle these challenges. I’ve included carefully curated links to trusted real estate agents, lawyers, and property services. There’s practical advice on spotting potential pitfalls—like properties without proper permits or hidden maintenance costs. I’ve also outlined how to approach different regions, from Budapest’s urban buzz to the tranquil Balaton countryside, so you can make informed choices no matter where you’re looking.
Whether you’re dreaming of a holiday home by the lake, a family house in the suburbs, or an affordable city flat, my comprehensive e-book offers the guidance you need. It’s packed with practical tips, detailed insights, and the kind of expertise that can save you time, money, and headaches.
Additional Resources:
- Hungarian Central Statistical Office (KSH) Housing Market Data
- Budapest Real Estate Insights 2025
- Renting in Hungary: Legal Considerations
- Hungarian National Bank Housing Report
The housing market may be challenging, but with the right knowledge and resources, you can find your place in Hungary. My e-book, HOW TO HUNGARY: Budapest & Beyond, is your definitive guide. From tips on renting and buying to an extensive directory of trusted professionals, it’s everything you need to make confident choices—even in a competitive market. Get your copy now and take the first step toward finding your perfect Hungarian home.