Number of years required to purchase a new apartment in Bucharest, Romania 2008-2024

The Romanian housing market has seen a remarkable shift over the past two decades, with the time required to purchase an apartment in Bucharest dropping significantly. In 2008, it took an average earner nearly 33 years to afford a home in the capital. Fast forward to 2024, and that timeframe has shrunk to just 5.6 years, marking a dramatic improvement in housing affordability for Bucharest residents.

One room in Cluj or three in Arad?

While Bucharest's housing market has become more accessible, other Romanian cities show varying degrees of affordability in their rental markets. Cluj-Napoca consistently ranks as one of the most expensive cities for renters, with one-room apartments averaging 400 euros per month and two-room apartments reaching 600 euros monthly as of October 2024. In contrast, Arad offers more budget-friendly options, with three-room apartments available for 448 euros per month on average.

Homeownership high as always

Despite the improving affordability in Bucharest, Romania maintains a high rate of homeownership. The country has historically seen owner-occupancy rates above 95 percent, though this figure slightly decreased to 94.8 percent in 2022 before rebounding to 95.6 percent in 2023. Interestingly, property price inflation has moderated in recent years. The House Price Index showed minimal growth of 0.5 percent in the second quarter of 2024 compared to the previous quarter, a stark contrast to the negative inflation rate of -2.6 percent observed in the third quarter of 2020. This stabilization in property prices may contribute to the sustained high levels of homeownership across the country.