Before the fall of the totalitarian regime in Czechoslovakia in 1989, most housing was publicly owned—either by the state or by housing cooperatives. After the political transition, much of this housing stock was in poor technical condition and required substantial investment. Privatization was seen as the solution and became the cornerstone of Czech housing policy. For instance, since the 1990s, Prague has privatized over 80 % of its municipal housing stock and now owns only about 5 % of the city’s total housing.
As a result, municipalities today hold a weak position in the housing market and are unable to provide alternatives when market prices become unaffordable. Urban residents face high rents, short-term and unstable lease agreements, and soaring property prices that make mortgages inaccessible for many.