Housing Crisis

Prices of housing, to rent and to buy, have skyrocketed in Poland over the last year, to the extent that it is becoming a major issue in the campaign ahead of the general election in the autumn. Both the government and opposition have come up with proposals to address what is now a housing crisis, but they’re primarily focused on the middle class, experts say, as that’s the category where most voters come from.

Renting an apartment in a Polish city like Warsaw has become increasingly difficult. Not only have rents risen by as much as 50 per cent, but any new offer disappears from the market after only a day or two.

Experts explain a perfect storm has led to this situation. Like other countries in Central and Eastern Europe, Poland has been hit by inflation, which hit an annual 17.2 per cent in January. To counter it, the central bank has hiked interest rates, leading to a significant tightening of conditions for mortgages; with fewer people able to buy, there is increased competition for renting. Furthermore, around a million Ukrainian refugees continue to live in Poland, the vast majority of them using the regular rental market having been provided with no long-term alternatives by the Polish state.