Ahead of Hungary’s 2026 elections, Prime Minister Viktor Orbán has introduced a housing subsidy proposal aimed at public servants, including teachers, police officers, doctors, and soldiers. The scheme offers an annual subsidy of 1 million forints (approximately $3,000) to help with mortgage repayments or serve as a down payment for new home loans. The Hungarian government is expected to finalise the decision on the plan next month, which is part of a broader pre-election spending package aimed at securing voter support.
Alongside the housing subsidies, the Hungarian government is also offering significant tax cuts and a subsidised mortgage programme for first-time homebuyers. These combined measures are projected to cost the government an estimated $443 million annually. The overall cost of family benefits is expected to rise to 4.8 trillion forints ($13.71 billion) in 2026, representing roughly 5% of Hungary’s GDP.
While these measures are aimed at providing immediate relief to citizens, they come at a time when Hungary’s economy is facing significant challenges. The country’s growth forecast for 2025 has been revised downward to 1%, from an earlier projection of 2.5%, following a modest economic growth rate of just 0.1% in Q2 of 2025. To fund these pre-election promises, the government has had to increase borrowing, raising concerns about the sustainability of such large-scale spending in the long term.
Critics argue that while the housing subsidy may offer immediate financial relief to public servants, it fails to address Hungary’s broader housing market issues, such as affordability and availability. There is concern that focusing on subsidies may detract from more fundamental reforms needed in housing policy and urban development. As the elections draw nearer, the long-term effectiveness of these initiatives and their impact on Hungary’s economy will likely remain a key topic of debate.
