Competition between landlords on the market is intensifying as demand for rental apartments has fallen significantly at the start of 2026 and rents are rising more slowly. The price increase in January was the weakest start to the year in recent years, while the number of interested parties fell by almost a fifth, as reported by Index.
As the rental price index from the Central Statistical Office (KSH–ingatlan.com) claims, rents rose by 1.3 percent on a monthly basis in January, both nationwide and in Budapest. This is the most moderate price increase in January in years. The annual price increase has also declined.
Nationwide, the price increase was 5 percent, and in the capital 5.1 percent, while a year earlier the increase was 9.4 and 9.5 percent, respectively.
As the data confirms, demand also weakened:
In the first seven weeks of 2026, 18 percent fewer people were looking for a rental apartment than a year earlier.
The portal points out that this means the increase in rents at the beginning of the year was just as low as in 2021 during the coronavirus pandemic. According to ingatlan.com, the main reason for this change is the Otthon Start (Home Start) program, which has prompted many tenants to buy an apartment, thereby reducing demand in the rental market.
The rental market therefore started 2026 on a much more subdued note than in previous years. In László Balogh’s view, senior economist at ingatlan.com, wage increases in January would normally also drive up rents, but this year landlords were only able to raise prices to a lesser extent. In his opinion, this is leading to increased competition between landlords, as the market environment does not currently allow for the kind of significant price increases that were common in previous years.
Poster for the Home Start program in Debrecen. Photo: MTI/Czeglédi Zsolt
There are currently 16,800 apartments and houses available for rent, which are 6 percent less than a year ago. Due to lower rents in recent months, many people have quickly rented the available properties, causing the supply to shrink. However, demand declined significantly at the beginning of 2026.
Between the beginning of January and mid-February, in the first seven weeks of the year, 18 percent fewer people were interested in rental apartments than a year earlier.
As László Balogh sees it, 135,000 telephone inquiries about rental apartments and houses were received in the first seven weeks, which is significantly less than in previous years and indicates a sharp decline.
How much does it currently cost to rent an apartment?
Budapest: The average monthly rent is 260,000 forints (688 euros), with the highest rents measured in districts V and II at around 361,000 forints (955 euros). In the districts with the largest supply of apartments, rents range between 250,000 and 290,000 forints (662 to 767 euros), while in the cheaper districts (X, XIX, XXI), apartments are available with rents of 200,000 forints (529 euros).
Large cities outside the capital:
Debrecen: 220,000 forints (582 euros)
Győr: 200,000 forints (529 euros)
Székesfehérvár: 200,000 forints
Other county towns (median):
Nyíregyháza, Pécs, Szeged, Szombathely, Tatabánya, Veszprém: 180,000 forints (476 euros)
As László Balogh puts it, although the rise in rents has slowed significantly, nominal wage growth means that prices are likely to continue to rise in the medium term. However, the pace is likely to become increasingly moderate. The expert explained that, from the perspective of the rental market, the “moment of truth” could come in July/August. That is when the high season begins, and it will then become clear how demand and rents will develop. Until then, the market could be characterized by weaker demand and a slowdown in price increases on an annual basis.
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Via index.hu, tudastar.ingatlan.com, Featured image: MTI/Máthé Zoltán
The post Rental Prices Record Weakest Start in Years appeared first on Hungary Today.
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