Debrecen4U
August 24, 2026
New Municipal Rental Housing Regulations and Housing Strategy Under Development in Debrecen
Debrecen is putting its municipal rental housing system on a new footing. One of the key strategic priorities for the 2024–2029 municipal term is to improve housing conditions for the people of Debrecen. The most important change to the housing strategy and the municipal rental housing regulations is that social considerations will play a much stronger role in the future allocation of rented homes than before. The aim is to make affordable housing available to as many Debrecen residents who are genuinely in need as possible, while the city preserves and develops its own housing stock. Following the entry into force of the regulations, 200 rented homes will become available exclusively on a social basis to those who qualify.
In recent years, Debrecen has undergone significant economic and social development. New jobs have been created, and the city’s role in education, vocational training and higher education has grown, while demand for housing has changed accordingly. It is becoming increasingly important to ensure that a sufficient number of safe, secure and affordable housing options are available in the city. This also prompted a comprehensive review of the housing strategy, which had been in place for more than two decades, and of the housing management system.
Three rent categories
In line with the provisions of the Housing Act, the proposal distinguishes between three rental categories: social, cost-based and market-based rental arrangements. The social category is intended to help people who, based on their income, financial circumstances and personal situation, are in need of municipal housing. Under the cost-based rental arrangement, the rent is intended to cover the landlord’s expenditure associated with the property; this may include, for example, staff accommodation, tenant allocations made in the city’s interests, accommodation in homes for older people and studio flats.
Eligibility determined by need rather than rent bidding
One of the most important changes is that competitive bidding based on the rent will be abolished for social rental housing. In addition to assessing applicants’ income and financial circumstances, their social situation will be evaluated according to the criteria set out in the regulations. Among other things, applicants will receive priority if they are raising several children, are solely responsible for caring for their child, live on a lower income, have a disability or long-term illness, are leaving the child protection care system, or are living in temporary accommodation for families. In practice, this means that the allocation of social rental housing will become considerably more responsive to individual and family circumstances.
The decision to issue a call for housing applications will be made by the Ownership and Economic Development Committee on the recommendation of Cívis Ház Zrt., after which applicants will be assessed and ranked according to the criteria set out in the regulations. This will make it clearer and more transparent for everyone what conditions must be met to obtain a municipal rented home.
Social rents will remain well below market rental rates
Municipal rents have not changed since 2017, while between 2017 and 2026 cumulative inflation has exceeded 70 per cent, and the costs of maintaining, repairing and renovating homes have also increased significantly.
Under the new regulations, social rents will increase by 15 per cent, as it was a fundamental consideration for the municipality that social rental housing should continue to provide an affordable housing option.
Under the new system, the rent for an average social municipal rented home will still be around 70 per cent lower, meaning that it will remain significantly below market rental rates. Tenants in more difficult financial circumstances may continue to be eligible for rent support.
Protecting existing tenants is a key priority
When developing the new regulations, the municipality is also paying particular attention to protecting the housing security of people who already live in municipal homes.
For homes let before the new regulations enter into force, expiring tenancy agreements may be extended for a further five years at the tenant’s request. Social tenants who have reached the state pension age may also request a further five-year extension of their tenancy every five years.
For all tenants who currently have a tenancy agreement, the changes will be introduced gradually: the difference between the current rent and the increased rent will be phased in over four years, with 25 per cent of the increase payable from 1 January 2027, 50 per cent from 1 January 2028, 75 per cent from 1 January 2029, and the full increase from 1 January 2030.
200 homes exclusively on a social basis
One of the most important elements of the launch of the new system is that following the entry into force of the regulations, 200 municipal homes suitable for letting will become available exclusively on a social basis.
A safeguard in the regulations is that at least 50 per cent of municipal homes must continue to be let to people in need on the basis of their social circumstances.
The city intends to develop, rather than reduce, its rental housing stock
An important objective for Debrecen is to preserve its municipal housing assets. Of the nearly 22,000 homes inherited from the former council housing system in 1990, the municipality had only around 13,000 homes by 1994. Between 1994 and 1998, partly as a result of the nationwide privatisation of council housing, the number of residential properties in municipal ownership fell dramatically further, reaching just 5,237 by 1998. The city administration therefore effectively halted the sale of municipal homes from December 2015 onwards.
The direction has been clear ever since: the city does not intend to reduce its rental housing stock, but to preserve, modernise and, where possible, expand it. The housing strategy is therefore not only about making better use of existing homes, but also about expanding affordable housing opportunities over the longer term.
To this end, the municipality is also planning a long-term financial commitment. If the solidarity contribution is abolished and Debrecen is free to use its local tax revenues as it sees fit, the city will allocate at least 5 per cent of its local business tax revenue to developing its rental housing stock for ten years.
Greater attention will also be paid to maintaining and renewing the homes: Cívis Ház Zrt. will allocate at least 20 per cent of the income generated from renting the homes to renovating the housing stock. The aim is to ensure that municipal homes are not only affordable, but also remain in a suitable technical condition to serve the people of Debrecen over the long term.
Debrecen is also helping young people start independent lives
Alongside the renewal of the social rental housing system, supporting young people will remain an important part of the city’s housing policy.
Launched in April 2024, the Phoenix Housing Programme provides assistance to young employees under the age of 35 who work in Debrecen in the private or public sector and have an open-ended employment contract. Under the programme, the municipality covers one third of the market rent, while the remaining two thirds are shared between the employer and the employee. The scheme provides predictable support for five years, helping young people establish independent lives and remain in Debrecen.
The new housing strategy therefore addresses the housing needs of people in social need, the security of existing tenants, support for young people, and the long-term preservation and development of the city’s housing stock. Debrecen’s aim is to create a rental housing system that is fairer, more transparent and more responsive to people’s real-life circumstances, while providing a solid long-term foundation for affordable housing.
The draft regulations will be considered by the General Assembly at its meeting on 27 August 2026. If adopted, the new regulations may enter into force on 1 October 2026.
The full housing strategy, the draft municipal rental housing regulations and the detailed proposal are available on debrecen.hu.
Source and photo credit: debrecen.hu
