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The reasons behind the housing crisis in Hungary
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It has never been so hard to save money to buy our own home in Hungary. Without significant financial support from the family, it is now almost impossible to buy a house or a flat. In the past three years, Hungary has seen the biggest price increases in the EU. There has been a sharp increase in construction, rents and house prices. Budapest ranks in the top third of the EU in terms of house prices relative to income, Telex reports. The question their new Telexicon aims to answer is this: why is it so expensive to have a roof over our heads?
Because there is so much money in the housing market, people’s housing needs are not the only thing that is taken into account: making a profit is just as important for those for whom it is an investment. There are periods when there is more financial investment in the sector and the logic of the money market is becoming increasingly dominant in the housing market. This is called financialisation.
The abundance of money makes getting a home both easier and harder, Telex says. On the one hand, money flows into the housing market through bank loans, and banks make it easier for customers to borrow and get into debt. On the other hand, the abundance of money and demand drives up prices, making housing more expensive. If this bubble bursts, many people could even losing the housing they have acquired with their loans. The majority of people are defenceless against rising prices, but making housing unaffordable would cause a social crisis. That is why no country would allow the market logic in housing to be completely unleashed.
The extent and modalities of public involvement vary from country to country. In Hungary, it sounds good when the state helps families to get a home through various programmes (CSOK, Baby waiting loan). But these programmes have several drawbacks: on the one hand, they do not help the most needy, only the middle class. On the other hand, the state provides most of its support at a time when the housing market and the economy are booming anyway. And this kind of intervention only adds to the ups and downs of the housing market.
Real Estate – Property Market and the Construction Industry – all (3) three that are Inter-faced, and ALL are in a Collapsing SHAMBLES.
Weight of SELLERS that totally outweigh BUYERS.
Who – what incentive is there to Buy or Invest in Hungary?
The Economic & Financial landscape – all the major componentry that makes the CORE of the Hungarian economy – continues its rapid trend DOWNWARDS.
Those who knew – have BEEN using this DNH-Forum – forecast 48 months back, prior to the outbreak of the Novel Pandemic – or the Russian War on the Ukraine – that these (3) three sectors of the Hungarian “landscape” being Real Estate – Property and the Construction Industry, we in Hungary were going to witness a replay of 79AD in Pompei, that would leave us in the 21st century in a somewhat cataclysmic economic industry society/citizens MESS.
Its carnage what is factually occurring, and its end is DISTANCED to finding a place of Normality or Stabilization.
It’s no wonder that Hungary’s housing market is better of than most EU countries.
More and more people realize that Hungary has the best future ahead of it, if not the corrupt EU sabotages the only democratic country in the union of course.