Budapest

Budapest faces a looming housing crisis caused by the energy price shock and rising inflation. Budapest is characterised by a small, poorly regulated private rental sector (10-12%) and an underdeveloped social housing system (4%).  

Budapest’s two-tiered urban governance structure hinders policymakers from addressing the housing crisis. The district municipalities are tasked with the prevention of homelessness, while the city municipality is chiefly responsible for the provision of homeless shelters. 

The municipal housing sector is characterised by mostly very low-income tenants, deteriorating stock, and minimal available units. The central government does not provide any subsidies for affordable housing schemes. 

The repurposing of an unused non-residential public building for social housing, using energy efficient technologies and low-cost, aesthetic modular interiors, developed through inclusive design approaches involving beneficiaries.

A data-driven early warning mechanism to rapidly identify energy poor households and prevent larger crises, built on broad cooperation with public utilities, social service providers, and district municipalities. 

Testing a revolving fund for energy-efficiency retrofit grants and other flexible interventions to reduce energy poverty, particularly for high need and physically at-risk target groups (e.g. unable to heat their home).