Young people expect to spend 43 million forints on their first home

Many young people want to enter the housing market. In the third quarter, 26 percent of 19-29 year-olds said they would buy a home in the next three years. Their share was 23 percent a quarter earlier, and similar a year earlier. However, in the last quarter of last year, 17.5 percent held this opinion, a significant increase compared to that. The opportunity provided by the Home Start Program may play a role in this. As part of this, first-time home buyers can receive a preferential, state-subsidized home loan.

Price hike visible

According to the research, young people planning to buy a home would spend an average of more than 43 million forints, which is a significant increase of over 30 percent compared to the average of 32 million in 2024.

The mention of the cheapest category, under 20 million, has decreased significantly. In the previous quarter, 47 percent of the responses belonged to this category, now only 17 percent. The most common response this quarter was the 20-29 million category, with 23 percent planning to buy a home of this value. Young people thinking about buying a home in Budapest expect to spend 49 million, while in smaller cities or county seats they would spend 40-41 million forints on the purchase. These data indicate that young people consider it possible to buy a higher-value home, partly with the help of the Otthon Start Program. While more expensive apartments than before have appeared on the map of young people, a price increase can also be felt in the housing market. For example, in the case of panels, which are a good alternative for young people as a first home. According to the latest analysis by Otthon Centrum, the average price per square meter of panels in Budapest is 1.14 million forints, which represents a 38 percent increase in price in one year. The largest increase occurred in the 11th and 13th districts, where the average price per square meter is already around 1.2–1.27 million forints. The trend is similar in other parts of the country: in larger cities, the square meter prices of panel apartments are between 700–900 thousand forints, and prices have reached previous historical peaks almost everywhere.

Easily accessible

According to K&H experts, in addition to rising prices, financing options are also playing an increasingly important role.

The newly introduced Otthon Start Program can therefore be of great help to buyers. The scheme offers a state-subsidized, fixed 3 percent interest home loan to those who want to buy a new or used home. The loan can be applied for up to HUF 50 million, with a 25-year term, and K&H has made it available to eligible applicants through an accelerated and convenient procedure.