The price level of residential housing is one of the key performance indicators of housing market, which is connected to outer economical environment and it shows the current relationship between supply and demand for real estate. According to data from The Czech Statistical Bureau 1, significant increase of housing prices can be observed in the past seven years. The development of the housing price index is depicted on the figure below.
On the figure it can be observed that approximately from the second half of the 2015 year, the housing price started to increase rapidly, compared with previous period. As consequence, the problematic of housing market has started to be attractive topic for media, urban planning experts but also for politicians. As a solution to housing crisis, the last mentioned group proposed to increase the amount of municipal and state owned housing, however implementation of such proposal has not been done in the sufficient scale that could affect the market and the growth of housing price is expected to continue.