Is Renting Actually Cheaper Than Buying Right Now in Warsaw?

Renting a flat in Warsaw is now decisively cheaper than buying one — at least for the city’s median-income residents — according to new analyses that show ownership costs surging well ahead of monthly rents. A standard two-bedroom in Śródmieście, once the dream of every young professional, often now demands a mortgage payment almost double the current median rent.

Skyrocketing Mortgage Rates Reshape Choices

This affordability gap isn’t new for some, but it’s been thrown into stark relief by 2026’s home loan interest rates, which Bank Pekao and mBank both list at well over 7% for new 30-year PLN mortgages. For a 55 m² flat along Ulica Marszałkowska — the heart of central Warsaw — advertised for PLN 1.25 million, today’s standard 20% down and associated fees put ownership out of reach for many. According to Otodom’s June report, the median monthly rent for a comparable flat in the area is PLN 4,600, while a new buyer with an 80% mortgage faces payments over PLN 8,200, even before factoring in property taxes and maintenance.

This matters deeply in a city where property prices have climbed 28% in just two years, pushing many first-time buyers further to the margins — literally. Popular rental districts like Praga-Północ and Mokotów still see strong demand as young working residents weigh the steep entry costs of the owner’s market. The city’s Mieszkanie Plus affordable housing scheme, after fresh funding in April, still struggles to match demand, admitting just 780 applicants last quarter for subsidised units scattered across Wola and Ursynów, where the waitlists can stretch for years.

Crunching the Numbers: Rent vs Buy in 2026

Data from the Warsaw Statistical Office shows the average purchase price per square metre in the city centre hit PLN 23,000 in May 2026, while lenders tightened debt-to-income ratios after last autumn’s legislative push by the Ministry of Development and Technology. Median city rent for a two-bedroom is PLN 4,200 per month, up 16% year-on-year but still dwarfed by buyers’ monthly outlay. Developers report that pre-sales in new build projects on Ulica Grzybowska are visibly slower; only 41% of the latest phase at Browary Warszawskie was reserved by the end of June, agents say — a far cry from the rapid sellouts of 2023.

Even would-be buyers with substantial savings face daunting hurdles. A home loan for the city’s median flat now requires a monthly household income north of PLN 13,000, putting homeownership well above local average earnings. Would-be investors, once dominant in Saska Kępa and Żoliborz, have pulled back, analysts confirm, spooked by both the jump in borrowing costs and new rental tax rules.

For renters, the picture is at least somewhat more stable in the short term. While rents are rising, the immediate outlay is lower and tenants avoid exposure to interest rate volatility. Still, rents aren’t cheap: relocation firm Expat.pl says new arrivals from outside Poland are now routinely paying PLN 6,000 or more for modern two-beds in Powiśle or Ochota. Looking ahead, those on the fence should beware of both further mortgage increases and any mid-year rent surges; with persistent pressure on supply, neither option will get significantly cheaper. The bottom line: for most Warsaw residents in 2026, renting is less punishing on the wallet than buying, at least for now.