The presence of younger generations on the Budapest real estate market has declined, with fewer purchases aimed at downsizing or enabling young adults to move out of the family home, according to Duna House.
While this trend is most pronounced in the capital, similar patterns are emerging across Hungary. As a result, activity has slowed in previously dynamic market segments typically driven by young buyers.
The 2025 data indicate a dramatic shift in the activity of younger purchasers, a development that could reshape housing demand and broader residential trends in the long term.
The decline is especially sharp in the 20–30 age group: while they accounted for 17% of all Budapest property buyers in 2024, that share nearly halved to just 9% in 2025.
Their withdrawal signals not only a missing demographic but may also reflect a troubling societal shift alongside the broader market stagnation. Rising property prices and high interest rates, coupled with inflation, make it harder for young people to gather the necessary down payment or qualify for loans. Securing independent housing is becoming increasingly difficult.
This shift has also impacted demand for smaller apartments. In 2024, 10% of buyers opted to downsize; in 2025, that figure dropped to just 5%. Compact and more affordable homes, such as studio apartments, are especially popular with first-time buyers—typically younger people. Their absence from the market has translated into falling demand for these housing types, possibly indicating that even the smallest units are increasingly out of financial reach for entry-level buyers.
A similar trend is evident in generational separation—situations where young adults leave the family home. In 2024, 8% of all transactions were related to this kind of life change; by 2025, that figure had fallen to 3%.
The trend is closely linked to the shrinking number of young buyers. If young people aren’t entering the market and purchasing homes of their own, the process of generational separation is inevitably delayed.
