In the United States, they want to support housing. However, countries like the Czech Republic are also suffering from a low supply of residential properties.
The insufficient supply of residential properties is troubling not only the Czech Republic but also the United States. Therefore, both the Senate and the House of Representatives have approved bills aimed at expanding this supply, while also reducing bureaucracy and making financing more attractive for households that currently cannot afford their own housing.
American President Donald Trump promised at the beginning of the year to help rein in housing costs. At the same time, he announced that he would push state-supported mortgage agencies Fannie Mae and Freddie Mac to purchase mortgage bonds worth 200 billion dollars, thereby pushing interest rates to even lower levels. Additionally, there is also discussion about the possible limitation of family home purchases by large institutional investors, which, according to the president, contribute to rising prices. However, efforts to improve the functioning of the local residential market do not end there.
The American housing market has recently been the slowest in 40 years, according to an analysis by Morgan Stanley. While six years ago, approximately one million new homes were regularly sold in a year, in recent months it has been only 700,000, according to data from the KBC group.
Legal Adjustments
Therefore, both the American Senate and the House of Representatives have come up with legislative proposals aimed at further assisting the housing market. The goal is to expand supply, reduce bureaucracy, and improve financing options for purchasing properties. This package is now awaiting the unification of both versions and the president's signature.
The new standards aim to assist individual American states and cities in deciding the volume and location of residential construction. Just like in our country, the biggest issue "across the pond" is the permitting processes, zoning plans, and local regulations. The change is based on a mechanism that transfers some federal funds from cities that are lagging in construction to those where construction is more active. At the same time, the federal government is to prepare recommendations for "best practices" in urban planning, which will lead to the reduction of restrictive rules that hinder urban densification.
The effort of both chambers of Congress also aims to simplify the environmental review. This process should primarily concern projects in already developed urban areas, which could then receive exemptions or faster assessments.
Insufficient Domestic Supply
The mentioned approach can also be an inspiration for us. After all, the number of building permits issued in the Czech Republic has been declining for four consecutive years. Last year was also the worst in this regard since 1999. Authorities issued just over 61,000 permits, which is one-third less than in 2021.
The result is that less is being built than there is demand for. The gap between supply and demand is thus widening. Due to this trend, a housing deficit estimated at up to 100,000 apartments has developed in Prague over the past twenty years. Experts warn that the situation could worsen further.
For illustration: by the end of last year, there were approximately 5,150 new apartments on the market in the capital, representing a year-on-year decrease of almost ten percent. Such a low number was last recorded in 2022, when the market was gradually recovering after an almost complete sell-out in 2021.
“The supply of new apartments in Prague was even lower at the end of 2025 than its long-term average, around which it has been hovering since 2022, and thus remains significantly below the real market needs. The replenishment of supply is long hindered by dysfunctional permitting of new construction, and the further development will also be influenced by the lack of suitable land and capacities in the construction sector,”
explained Petr Michálek, Chairman of the Board of Skanska Residential, to LP-Life.
“The tension between demand and supply is a long-standing feature of the Czech residential market, and according to experts' expectations, it will persist in the coming years,”
stated pessimistically in the Trend Report publication by KPMG partner Pavel Kliment.
According to the latest data from Central Group, there are currently 152,000 new apartments in various stages of preparation in the Czech capital, which is a new record. However, due to the lengthy and complicated permitting system, it is still difficult to bring them to market in sufficient numbers. Experts expect improvements in connection with amendments to the Building Act and the Metropolitan Plan, but not before 2027 at the earliest.
Sources: original article, own inquiry, ČTK, ARTN, Central Group, KBC Group, Morgan Stanley
