Higher wages, but lower chances of buying a home

Sustainability

The Central Statistical Office (KSH) recently reported growth in gross wages; however, this has not brought the chances of buying a home any closer for a large part of the Hungarian population, a study by property listings aggregator Otthontérkép reveals.

According to recent figures released by the KSH, average gross wages rose almost 13% in 2017 year-on-year, and the growth is even higher calculated since June 2015, at 33%. In itself, however, this does not say much about the situation and financial opportunities of Hungarian society, says Otthontérkép, cited by online news portal index.hu.

Despite the wage growth, a large part of the population has less chance of buying a home, given that real estate prices have grown at a higher rate than wages: by 18% between 2016 and 2017, and by 66% between June 2015 and 2017. This year real estate prices are expected to rise by a further 5-8%, while the pace of wage growth is set to be slower than last year.

As a result of rising home prices, buyers are turning more and more towards the periphery of cities. Homes in Budapest have already reached the maximum price that buyers are able to pay, while in the suburbs flat prices have risen 48% in the last two years, and house prices by 23%, according to Otthontérkép data.

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