New Strategy Needed: 'Budapest is Facing Severe Housing Crisis', Declares Mayor
- 23 Jun 2026 11:44 AM
Gergely Karácsony, the mayor of Budapest, has called for the development of a comprehensive strategy to tackle the city's housing crisis, in connection with a pilot project to convert an out-of-use school building in the 4th district into 26 social rental flats.
"We know Budapest is facing a severe housing crisis. Unfortunately, we lead every relevant statistic, Karacsony said at a press tour of the Baross Street site. "Property prices here have risen more sharply than anywhere else in the European Union in recent years," he said, blaming the trend on "decades of poor housing policies".
"It's obviously tough to reverse this trend, but we must," he said, adding that the housing crisis was intertwined with climate change, posing a particular threat to the capital.
The DemoHub project, part of the EU-funded Affordable Housing for All Budapest initiative, tests solutions for affordable and energy-efficient social housing.
Karacsony said that while 26 flats "may not seem like a lot", it still marked progress after 25-30 years without any social housing construction in the city.
Judit Nagy, head of the department of public procurement and project management at the Mayor's Office, said 80 percent of the 6.2 million euro project is covered by EU funding. It will see tenants selected through a diversified process this summer, she said, adding that the flats will be reserved for those in social need, and will be ready for occupancy in early 2027.
MTI Stock Photo
Source: MTI – Hungary’s national news agency since 1881.
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