People at Risk of Poverty Spend Over 40% of Their Income on Housing in the Czech Republic

Housing costs are a burden, particularly for those at risk of poverty. Credit: KK for Brno Daily

Czech Rep. / EU, Feb 23 (BD) – In 2021, the housing share of disposable income in the EU was on average 19%, while for people at risk of poverty, it was 38%, show the most recent findings of the European Statistical Office Eurostat.

People at risk of poverty are defined by Eurostat as “those living below the poverty threshold set at 60% of the national median disposable income.”

According to Eurostat, in 2021 the Czech Republic ranked seventh among the 25 European countries in terms of average housing costs in disposable income and fifth for those at risk of poverty. Its housing costs to income rate of 19% was 4% lower than that of the neighbouring country, Germany, but 1% higher than that of Austria.

“In the Q3 of 2022, Czech wages decreased by nearly 10% in real terms.” 

On average, almost 20% of income is spent on housing in the Czech Republic but this rises to over 40% for those at risk of poverty. 

In the 3rd quarter of 2022, the average gross monthly nominal wage increased by 6% year on year however, due to high inflation, wages decreased by nearly 10% in real terms. 

According to the latest data from the Czech Statistical Office the median salary was 34,993 CZK (1476 EUR).

In the EU the highest average housing costs in relation to income and for people at risk of poverty were recorded in Greece (34% and 60%, respectively), Denmark (26%; 57%), and the Netherlands (24%; 48%), while the lowest were in Malta (9%; 18%), Cyprus (11%; 19%), and Lithuania (12%; 24%).

Trend: Fewer people living in households with arrears on mortgage

Despite the fact that house prices and rents have increased during the period 2010 to 2021, the number of people living in households with arrears on mortgage, rent or utility bills in the EU has decreased from 12.4 % in 2010 to 9.1 % in 2021, reports Eurostat. The largest numbers were observed in Greece (36 %) and Bulgaria (20%) with the smallest in the Czech Republic (2.4 %) and the Netherlands (2.6 %).

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