Development of Costs of Living in the South Moravian Region of the Czech Republic, and Affordable Housing

Abstract

The paper focuses on analysis of the development of the costs of living of the South Moravian households in the period of 2008–2014, throughout which there was noted an apparent increase. The paper analyses the structure of costs, changes of the shares of the partial components (rent, electricity, gas, heat and hot water), and comments on the changes. Taking into account the development of incomes of the households the paper presents a calculation of the impacts of possible governmental support for two key social groups requiring attention of the society – young people below 35 years of age, and retired people over 65 years of age. This calculation comes from the current structure of costs, and compares the conditions of two different levels of mortgage (100 % and 70 % of the price of a flat) without any support, with the development of costs under the conditions of governmental support in the form of subsidy for “entry housing” currently amounting for CZK 600 thous. (EUR 22 thous.), which shows to be on the edge of comparability with rental housing.