Institutional Limits of Housing Subsidies in the Czech Republic: A Regional Development Perspective

The study analyzes the system of subsidies for affordable housing in the Czech Republic in the context of economically and socially disadvantaged regions. The main objective is to assess the extent to which the current public support framework fulfills its declared purpose of ensuring affordable housing for low-income households and to identify the institutional and economic factors influencing its effectiveness. The research uses qualitative comparative analysis of academic studies, statistical data, and strategic documents from 2012–2025. An interdisciplinary approach combines insights from economics, regional development, and public administration theory to critically evaluate the institutional framework of housing policy in the Czech Republic. The findings point to persistent systemic shortcomings, insufficient coordination between levels of public administration, fragmentation of competences, and a strong dependence on market mechanisms in addressing the issue of housing affordability. These factors contribute to the residualization of the public housing sector, which is narrowing to narrowly defined groups of the population and losing its stabilizing and developmental function. The study concludes that housing policy should be seen as a long-term and institutionally anchored tool for regional development, linking public investment, regulatory frameworks, and local capacity building to promote social cohesion and economic resilience.