Czechs are getting richer. Spending on housing is increasing only slightly on average
The financial situation of Czech households improved for the third consecutive year last year and returned to pre-crisis levels. More than half of the population managed their income easily and concerns about the future decreased. Meanwhile, households spent on average 8,897 Czech crowns per month on housing, which is 15.9 percent of their net income.
According to the authors of a survey by the STEM agency for the consulting company KPMG, the majority of the public weathered the crisis of recent years and entered a period of consolidation last year. Last year, 57 percent of people found it very or rather easy to manage with their income, according to the survey. This is close to the best value of this indicator since monitoring began in 1993, which was 61 percent in 2021.
“The positive trend was evident in almost all population groups,"
the authors of the survey stated for ČTK.
People Can Save More
The household financial situation index measured by STEM rose to the same level last year as it was in 2017. It was higher in the series since the establishment of the Czech Republic only in the years 2018 to 2020, then it dropped sharply. It started to grow again in 2023. The ability to save has improved again since the crisis and stabilized in approximately half of the population, which managed to set aside some money in the last three months.
"The share of households that considered themselves poor decreased from 32 to 29 percent. The share of those who would have to take out a loan if they needed to make an expenditure of 50,000 CZK decreased from 21 to 17 percent. Trust in banks among Czechs remained at a high level of 81 percent,"
commented analyst Martin Kratochvíl in a press release about the situation.
Optimistic Future
The economic expectations of households have also improved. The proportion of people who rated their financial situation as worse than 12 months ago decreased from 44 to 38 percent. This year, 23 percent of people expected deterioration. A year earlier it was 32 percent. At the same time, the proportion of people with feelings of fear and uncertainty decreased from 64 to 56 percent. Meanwhile, the proportion of those looking into the next 12 months with hope rose from 36 to 44 percent.
On the contrary, difficulties in making ends meet increased specifically among people aged 45 to 59, workers, and operational staff.
"For one-fifth to one-quarter of the population, however, the impacts of crises receded only very slowly and their situation remained difficult,"
STEM added to last year's figures. In the current survey conducted between November 6 and 14 of last year, the STEM agency questioned 1,355 people over the age of 18.
Housing expenses are acceptable for many Czechs
One of the highest cost items was housing expenses. According to data from the Czech Statistical Office, they averaged 8897 CZK per month last year, which is 15.9 percent of their net income. Compared to earlier data, this amount increased by 28 CZK year-on-year. In 2024, it was 8869 CZK, which was 16.6 percent of the household income at that time.
Household incomes grew on average faster than their housing expenses. However, significant differences between various types of households cannot be overlooked. People living in their own
paid the least for housing. On average, without mortgage or loan repayments and without renovation costs, they spent 7,495 crowns. According to statisticians, this represents 13.6 percent of their income. Living in one's own house cost an average of 8,004 crowns per month, accounting for 12.1 percent of income. Households in rental spent the most, averaging 13,572 crowns, which is 30.1 percent of income. Living with relatives or friends averaged 6,334 crowns, which meant 16.1 percent of income.According to the Czech Statistical Office, approximately two-fifths of households live in their own house. Another 34 percent own their apartment.
“In total, almost three-quarters of households in the Czech Republic live in their own property, while rental housing applies to about one-fifth of households,”
noted Táňa Dvornáková from the Czech Statistical Office to the website Ceskenoviny.cz.
The least number of people living in rental properties are retirees. Seventeen percent of them live in rented accommodation. Conversely, the majority live with relatives and friends. Thirteen percent of seniors reside this way. According to Dvornáková, this is due to formal transfers of apartments to close ones, mainly children or grandchildren.
Approximately 44 percent of families with children live in their own homes. Single parents with children most often rent, with 46 percent living this way. Single-parent households spend the largest part of their income on housing, which costs them almost 27 percent of their monthly income. Complete families spend the smallest portion of their income on housing, just under 14 percent. People in retirement then spend nearly 22 percent of their income.
Sources: original article, CZSO, STEM, CTK, Ceskenoviny.cz
