Case study report - Budapest

Budapest, as Hungary’s capital and largest city (1.7 million inhabitants), concentrates both the country’s greatest housing opportunities and its most pressing housing challenges (MNB, 2023). The housing market reflects broader national trends, e.g. an overwhelmingly owner-occupied system shaped by large-scale privatization after 1990, limited municipal capacity in rental housing, and growing affordability pressures due to rapidly rising prices. Yet Budapest also faces unique dynamics: strong population demand for housing, a highly polarized housing stock with regard to their physical state, and sharp inequalities between social groups and neighborhoods. The municipality of Budapest and the district municipalities are  formally tasked with housing responsibilities, like providing public hosuing, housing allowances and homeless services but have limited resources, legal authority, and financial instruments to shape outcomes.