Creditworthiness Declines in Poland: Thousands of Homes Out of Reach

The creditworthiness of Polish citizens has fallen for the third month in a row, pushing thousands of homes out of reach for potential buyers. This trend persists despite unchanged interest rates, signaling a worsening financial situation for many households.

Analysts note that May saw a continued decline in creditworthiness across all model household types. "In a month, thousands of apartments became out of reach for customers," stated experts from RynekPierwotny.pl. Marek Wielgo, an expert at RynekPierwotny.pl, commented, "It is good that the Monetary Policy Council did not raise interest rates. In a situation where the housing market is clearly losing momentum, such a decision could further weaken demand for apartments."

The impact is felt across different household structures. An average single earner (around 6,000 PLN net) could secure about 420,000 PLN in loans in May, a 3% decrease from April. For a two-person household (8,000 PLN net), the decrease was similar, down to approximately 543,000 PLN. However, families with one child (10,000 PLN net) suffered the most significant drop, with their creditworthiness shrinking by about 5% to around 641,000 PLN.

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It is good that the Monetary Policy Council did not raise interest rates. In a situation where the housing market is clearly losing momentum, such a decision could further weaken demand for apartments. Especially since already today – without any changes in rates – we are seeing a drop in creditworthiness and a rapid shrinking of housing availability.

This reduced borrowing capacity has directly led to a sharp decrease in the availability of affordable housing, especially for smaller and cheaper units. Data from BIG DATA RynekPierwotny.pl reveals that the number of apartments within reach of singles declined significantly in most major Polish cities in May. Krakow experienced the most dramatic fall, with the number of available apartments dropping by 26% in a single month, from approximately 400 to 300 units.

While childless couples fare slightly better, they too face diminished housing options. In cities like Lodz, the number of available apartments remained relatively stable for this group, but in the Silesian-Cracow Metropolitan Area, it decreased by 5%. Similar reductions were observed in Poznan and Wroclaw, indicating a widespread tightening of the housing market.

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In a month, thousands of apartments became out of reach for customers.