Renting a house in Ukraine has long turned into a real marathon for many citizens who are forced to spend a lot of money on monthly payments. The cost of rent is increasing, and the dream of owning a home is becoming more and more distant. According to analytical data for January 2025, the situation on the rental market shows a sad reality: in some cities, the amount spent on rent for 15-18 years can be equal to the cost of the apartment itself. This raises important questions about housing affordability, the economic stability of the population and the future prospects for those looking for their own place in the sun in a country where renting is becoming a real financial burden.
Rent, which breaks records, but is not going to stop
Renting a house in Ukraine has turned into a real financial labyrinth, where the decision between renting and buying an apartment depends not only on the budget, but also on how many years you are willing to spend on a “lifelong lease”. Analytical data of the OLX site make it possible to form an idea of the state of the housing market in the country. So, if you have decided that you have the right to your own home, but do not want to take huge financial risks, then in Kherson and Zaporizhzhia you can find the most profitable offers. Here, the price of an apartment does not exceed UAH 670,000. It’s not cheap, of course, but it’s not cosmic either. On the other hand, it is not so easy to buy a home in Kyiv, Lviv and Odesa, because the prices of apartments there reach UAH 2.9 million, and the cost of rent in the capital can “eat” UAH 15,500 every month. Should you agree to such a price, when, in fact, you can pay the entire amount for an apartment in 14 years, the owner of which you will never be?
As you can see, the average cost of long-term rent in Ukraine has increased by 20% in a year:
- in Kyiv, renting a one-room apartment costs UAH 15,500;
- in Lviv – UAH 16,779;
- in Odessa – UAH 8,000.
The conditional break-even point – how many years it takes to pay the rent so that this amount is equal to the purchase – varies from 8.6 years in Ivano-Frankivsk to 17.9 years in Kherson. It is most profitable to buy housing in Dnipro (8.9 years), Ivano-Frankivsk (8.6 years), Poltava (11.2 years) – rents are high here, and apartments are relatively cheap. The worst situation is in Kherson (17.9 years), Kharkiv (15.8 years) and Chernihiv (15.7 years) – apartments are expensive relative to the low rental cost.
Based on such data, it is safe to say that in large cities such as Kyiv or Lviv, buying a home is a serious step that requires significant financial costs. However, if you plan to live in Ukraine for more than 15 years, you should think about buying, because during this time the rental costs will equal the cost of the apartment. But in cities with cheaper rent, it’s better to keep renting until prices start to drop to a more affordable level for buying.
What happens to sales
The secondary housing market in Ukraine for November 2024 shows interesting trends that should be carefully analyzed. A comparison with 2023 shows important changes that may affect the choice of buyers and tenants. And although the statistics look ambiguous, several clear conclusions can be drawn now.
First, more offers appeared on the market: the number of active ads increased by 5%, which may indicate the efforts of owners to sell their homes against the background of reduced demand. However, the number of reviews decreased by 9%, indicating a decrease in the number of buyers. This is also confirmed by the median price, which decreased by 1%. This, albeit to a small extent, still indicates the reaction of sellers to a decrease in the activity of buyers.
The average number of reviews per ad is only 2.9, which practically means there is no active demand for each offer. According to all indicators, the market is moving towards a slowdown in activity. The situation with 3-room apartments is especially impressive. Here, not only the number of reviews decreased (-14%), but also the prices for such apartments fell by 4%. There are few offers here (45,447), and the demand has decreased significantly, which may indicate a review of buyers’ priorities — 3-room apartments are no longer in such demand.
Rental market: demand increases, supply decreases
If sales cannot boast of growth, the rental market clearly shows a different trend. The total number of active ads decreased by 11%, but the number of reviews increased by 2%, which indicates an increased demand for apartment rentals. However, the price situation has changed dramatically: the median rental price has increased by 20%, and this is primarily reflected in the demand for 1-room apartments, where prices have jumped by as much as 24%. The tendency to increase rental rates is even brighter against the background of a reduction in offers.
Competition in the rental housing market seems to have reached its peak in 2024, with the average number of reviews per ad reaching 11, and for 1-bedroom apartments, it is as high as 14 reviews. High competition obviously indicates a shortage of affordable housing, forcing renters to spend more time and energy searching. On the one hand, the high demand for 1-room apartments, on the other hand, the small number of such ads and, accordingly, the price makes the rental market even more tense. At the same time, 3-room apartments fell under a decrease in demand and price, they have fewer reviews and the number of offers has decreased.
In general, the situation in the real estate market of Ukraine in 2024 looks like this: apartment sales have become less active, prices do not change much, and the rental market is marked by a shortage of offers and a significant increase in prices. So if you are looking for an apartment to buy, be prepared for reduced demand and slower activity. But for tenants, the situation is even more complicated: rental prices may increase, and affordable housing may decrease.
For years, it was believed that buying an apartment is a guarantee of stability. But with current realities, not everyone can afford it. Bank mortgage rates are biting, the initial contribution under 30% is a huge amount for most Ukrainians. While in Europe housing is rented for decades, in Ukraine renting is still perceived as a “temporary solution”. However, prices dictate a new reality. Every year, for many Ukrainians, their own home becomes not a goal, but an unattainable dream.
Housing abroad: renting or buying – which is more profitable and why Ukraine is lagging behind
In the West, renting housing is a normal phenomenon, not a temporary compromise on the way to owning an apartment. In Germany, Sweden or France, people have been living in rented accommodation for decades without fear that tomorrow the landlord will raise the price or ask them to leave. At the same time, in the USA or Great Britain, buying a home has become an important financial step, not available to everyone, but quite real thanks to favorable loans.
Yes, for Europe, renting housing has long become a way of life. For example, in Germany, about 50% of the population lives in rented accommodation. The reason is simple: stable long-term contracts, strict eviction laws and no unexpected rent increases. Yes, to buy an apartment in Berlin is to spend 6,000-7,000 euros per square meter, and the rent costs 1,500 euros per month. For the average German, buying looks less attractive than renting without the extra financial burden.
The situation is similar in the Scandinavian countries. Buying housing is difficult due to high prices, but renting is comfortable and reliable. In Sweden, there are special housing cooperatives that allow housing to be rented at affordable rates, and the state controls the market and prevents prices from skyrocketing.
In America, the system is somewhat different. There, renting became an expensive pleasure, and the purchase of housing is stimulated by the state. The average mortgage rate here is 6-7%, but loans are given for 30 years, and payments for it are often lower than for rent. For example, in New York, renting a two-bedroom apartment costs $3,500 to $4,000 a month, while a mortgage for the same home will cost $2,500 to $3,000. Therefore, those who have a stable job more often choose to buy.
The situation is similar in Britain. Apartments there are also expensive, but there is an affordable mortgage, and rent is unprofitable due to high prices and lack of strict control over the market.
What is wrong with the housing market in Ukraine
In Ukraine, renting is a lottery, and buying a home is a marathon to exhaustion. The choice between these two options turned into an attempt by Ukrainians to look for accessibility options. It is worth noting that tenants in Ukraine do not have any protection. The owner can raise the price, change the terms or evict without explanation at any time. At the same time, the cost of rent is growing at a crazy pace. It is clear that it is difficult to save for own housing in such conditions. In Europe, an affordable mortgage is 2-4% per annum, in the USA – 6-7%, and in Ukraine – 15-20%. That is, when buying an apartment on credit, you actually pay for it twice. Add here the need to make a 30% down payment, and the purchase becomes unrealistic for most citizens.
New buildings in large cities are mostly built in the premium segment. Affordable housing is not being built, and what is is being bought up by investors or developers at the foundation stage.
Without government intervention, the situation is unlikely to change. We need mortgage programs with adequate rates, real control of the rental market and construction of affordable housing. Otherwise, Ukrainians will continue to spend tens of thousands of hryvnias on rent every month or save for decades for an apartment that becomes less and less affordable every year.
It is obvious that the housing market in Ukraine has turned into survival for those who want to have their own roof over their heads. Rents are rising, and there are zero guarantees for tenants. Buying a home remains a privilege for those who can afford to put down tens of thousands of dollars at once or accept credit shackles at unsustainable interest rates.
Therefore, people do not save for apartments, but spend everything to survive in someone else’s home. At the same time, the state does not offer real mechanisms for affordable lending, and developers are chasing profits, ignoring the needs of the majority. As a result, we have a paradox: there is a lot of housing, but there is critically little affordable housing. If the situation does not change, Ukrainians will continue to run a marathon to exhaustion, where the finish line with their own housing will remain an illusion for the majority.
