Warsaw

Warsaw faces a severe housing crisis characterized by rapidly rising prices and a substantial housing shortage. In 2025, the average price for apartments in central Warsaw reaches about 16,459 Polish zloty (around 3,800 euros) per square meter, with the most expensive districts exceeding 22,000 zloty (over 5,000 euros) per square meter. Residential prices have surged nearly 14.4% annually, far outpacing wage growth and severely restricting affordability. The city alone is estimated to need up to 400,000 additional flats, contributing to Poland’s national housing deficit, which ranges between 1.5 and 2.2 million dwellings.

Demand greatly outstrips supply, prolonging the time homes remain unsold and leaving over 100,000 people on public housing waiting lists each year. Overcrowding is acute, with the average apartment size well below the European norm, and 35.8% of the Polish population affected by overcrowded conditions—almost 20 percentage points higher than the EU average.

The hardest-hit groups are young people, low- and middle-income households, first-time buyers, and urban newcomers, including a significant number of Ukrainian refugees. Many young adults report that owning a home feels increasingly unattainable due to high prices and stringent mortgage requirements, forcing them into the private rental sector where rents also consume a large share of their income. The shortage of accessible and affordable housing makes decent accommodation a daily struggle for many.

In Warsaw, about 80% of residents own their homes, making it one of the highest rates of owner-occupation in Europe, while only approximately 20% of the population rents. Median residential sale prices in mid-2025 are around 18,153 Polish zloty per square meter, which is roughly 4,200 euros per square meter. The median rental price per square meter is about 72 euros monthly, based on short-term rental data, with long-term rentals averaging around 2,248 Polish zloty (roughly 520 euros) per month for an average apartment.

Publicly owned housing comprises roughly 10% of Warsaw's housing stock, with the municipality responsible for both council housing and social housing. Social housing in Warsaw targets vulnerable groups and sets rent at no more than half that of municipal council flats, while council flats serve households with income too high for social housing but insufficient for home ownership. Public housing is not synonymous with social housing; council flats and TBS (municipal housing associations) serve broader income groups and are often managed separately. Public housing’s share in the rental sector is modest, while private rental has surged due to population growth and limited supply. Overall, the market faces affordability challenges and a persistent housing deficit, with key public provision roles but limited government intervention.

Warsaw's city administration is responding to its acute housing affordability and supply challenges through expanded investment and new programs focused on affordable and sustainable housing. In 2025, Poland launched the “Key to Housing” program, providing at least €600 million to municipalities for building and renovating social and municipal flats, aiming to deliver 15,000 new units in the first year and up to 40,000 annually by 2030. By 2030, cumulative public spending on housing is set to reach €10.7 billion. The initiative prioritizes subsidies for local governments, covering up to 80% of construction or renovation costs for affordable apartments, including dedicated support for student housing at capped fees.

Concrete activities include scaling up social housing and municipal stock via non-repayable subsidies, supporting the expansion of TBS (Social Housing Associations) and SIM (Social Housing Initiatives), and incentivizing housing cooperatives to build both rental and ownership units. The “First Keys” scheme allows regulated purchases from the secondary market and supports first-time buyers under strict guidelines. Warsaw is also promoting institutional private rental sector (PRS) growth, with PRS units expected to double from 8,000 to over 16,000 in coming years.

Recent targets center on securing stable long-term funding, increasing annual social housing output, and enhancing energy efficiency by aligning new developments with EU sustainability standards. The approach reflects increased public commitment, regulatory reforms, and partnership with private and cooperative sectors to create more accessible, affordable, and environmentally sustainable homes.

In Warsaw, several individuals and organizations are actively working to address the housing crisis by promoting affordable and sustainable housing. The Polish government, through initiatives like the "Key to Housing" program, is playing a crucial role by allocating significant funds to build and renovate social and municipal flats. Development Minister Krzysztof Paszyk has been instrumental in advocating for stable financing of social housing.

Potential collaboration partners include:

Real Estate Sector: Developers focused on mixed-use spaces and green buildings are already contributing to the transformation of Warsaw's urban landscape. Companies operating in the private rental sector (PRS) are also key players.

NGO Sector: Organizations like Habitat Poland are actively involved in providing affordable housing solutions and advocating for policy changes to support low-income families. They could offer valuable insights into community needs and sustainable practices.

Academia: Researchers exploring sustainable urban planning and affordable housing could provide necessary expertise in designing integrated and inclusive housing projects.

Startup World: Tech-driven startups focusing on smart homes and digital real estate transactions could help streamline the housing market and make it more accessible.

Housing cooperatives in Warsaw play a significant role in the city’s housing landscape, with about 600 registered cooperative organizations, mostly focused on multi-family buildings and blocks. These cooperatives historically provided much of Warsaw’s affordable housing and remain central to the management and maintenance of older housing stock, often alongside housing associations and community entities. Cooperatives are present across districts, varying in size from small single-block entities to large organizations managing thousands of units.

Currently, cooperative housing forms a visible but minority share of Warsaw’s overall housing units. While exact figures for the proportion of units are not cited, sector experts suggest that cooperatives administer a substantial part of postwar estates, especially in districts like Bielany, Ursynów, and Mokotów, but likely account for far less than publicly owned or fully private housing, with their share continuing to decline as new developments primarily favor private ownership or rental.

The development of cooperative housing faces barriers such as rising land prices, financing challenges, and slow adaptation to evolving market dynamics. Nevertheless, city policies and national programs from 2025 promote cooperative housing by offering subsidies and non-repayable grants for construction and modernization, supporting both rental and owner-occupied cooperative initiatives. Warsaw encourages these activities through funding, regulatory easing, and partnership schemes, aligning with broader goals of affordable, accessible, and community-oriented housing, though sector growth remains moderate compared to other forms of tenure.