THE IMPACT OF MONETARY POLICY AND REGULATORY MEASURES ON PRICE DEVELOPMENTS AND HOUSING AFFORDABILITY IN THE CZECH REPUBLIC IN 2010–2024

This thesis analyzes the impact of the Czech National Bank's monetary policy and macroprudential measures on the price development and financial affordability of residential housing in the Czech Republic between 2010 and 2024. The theoretical section focuses on the operation of the interest rate and credit channels, as these mechanisms provide the clearest insight into the real-world reactions of the housing market to central bank actions. The main contribution of the research lies in connecting these macroeconomic data with real-world cost affordability models for various population groups. This phenomenon is examined at a regional level by comparing the Prague and Central Bohemian markets with selected reference regions. The analysis shows that while central bank restrictions can sharply freeze the volume of newly granted mortgages, nominal property prices react rather rigidly and show almost no downward movement. A key finding is that administrative limits, most notably the DSTI ratio, currently represent the greatest obstacle to aggregate demand. They act as a much stronger barrier in the market than the actual increase in interest rates. Furthermore, the study shows that the metropolitan market in Prague responds to monetary shocks non-linearly and with much greater sensitivity than the rest of the country. In conclusion, the thesis highlights a crucial problem: unless structural deficits and the massive bureaucratic burden on the supply side are eliminated, monetary tools alone cannot restore equilibrium to the housing market.