PM Orban: Owing Your Own Home Is the Essence of the Hungarian Dream

The Hungarian Prime Minister says it is a legitimate debate whether rental housing or owning property is the better solution for young people, but the essence of the Hungarian dream is having your own home. In his weekly Friday morning interview on Kossuth Radio, Viktor Orban said that the government pursues a family-friendly policy that ensures that the children people want are born in Hungary. The Prime Minister spoke about the Home Start Program and the tasks ahead after the EU tariffs agreement.

"Everyone is doing the math, and I’m trying to keep track of developments too," Viktor Orban noted in this morning's radio interview in response to the observation that families are now receiving their monthly pay, which now includes the increased amount of the new family tax allowance.

Why are there fewer children?

According to Viktor Orban, it is either because people have changed and no longer want children and do not want the stress – as is the case in some parts of the world – or because those who want children encounter obstacles and eventually run out of time.

In the West, they see migration as the way to address this situation. They take in migrants, expecting them to work in their place, but, as PM Orban says, we can see this did not happen. "This is the ultimate reason for migration. If there are no children of your own, you replace them with migrants," he added.

"But we said that if there are obstacles making it hard to start a family, we should remove them," he pointed out. With the family tax relief, we are getting closer to a situation where people who have children will not be worse off financially, he added.

"On immigration, Hungary makes no compromises," he underlined.

PM Orban said that the Hungarian government pursues a family-friendly policy that results in the birth of the children people want to have. 

He noted that the ultimate goal is for those who have children to be better off financially than those who do not. "We are not there yet," he said, "but the situation has more or less balanced out."

Viktor Orban explained that one of their measures makes infant care allowance (CSED) and childcare allowance (GYED) exempt from personal income tax. For families receiving CSED, this means an extra 78,000 forints, and for those receiving GYED, 43,000 forints in additional income, taking average earnings. The doubling of the tax allowance for children affects one million families, the first step of this measure was a 50 percent increase. As a result, the extra amount families can keep may exceed 100,000 forints per month.

Rental housing or owning your own home?

The Prime Minister said there is an ongoing debate between creating opportunities for home ownership and running rental housing programs. In his view, it’s not an either/or question, as both are needed. However, rental housing involves an element of dependency.

The essence of the Hungarian dream is owning your own home,

he said. "This gives ultimate independence," he added, noting that they see home ownership as the solution. Interest rates were so high that the government had to intervene, he said, highlighting that today, loan repayment may be less than a rental fee.

Viktor Orban said, "Hungary is a place where you have something, and that ties you here." He added that this is the essence of the middle class and that this is strengthening the nation.

The Prime Minister said the Home Start Program offers a 25-year loan with no exchange rate or interest rate risk.  "If someone borrows twenty million forints, they save sixty thousand forints per month compared to a market loan," he explained.

This makes it possible to buy a home more cheaply, Viktor Orban pointed out. He advised young people to look into details of the program, noting that there is enormous interest. He emphasized that the program can be combined with other support schemes, allowing people to access significant amounts of financial assistance.

"This is a type of homeownership loan that does not have any requirements related to family status. Everyone can apply for it," the Prime Minister stated. He added that the program can be used to purchase both new and used properties. Buyers are supported, but price limits have been imposed to prevent price hikes and ensure the loan isn't used to purchase luxury properties. For apartments, the maximum property value is 100 million HUF  (approx. 252 thousand EUR); For houses, the cap is 150 million HUF (approx. 379 thousand EUR); The maximum price per square meter is 1.5 million HUF (approx 3,800 EUR)

When asked whether there will be enough available housing for those taking out the loans, Mr. Orban responded that the program will lead to a significant increase in home construction.

Will Home Start Cause Price Increases? 

Reacting to claims that home prices might increase by 20% due to the Otthon Start program, the PM dismissed this, calling it a result of misinformation, particularly from Peter Magyar and his team. "Those spreading this idea haven’t read enough or talked to Miklos Panyi," Mr. Orban said. He also recalled that Kinga Kollar, a politician from the Tisza Party, once said that "what is good for the Tisza Party is bad for Hungarians."
"So based on that logic, the Tisza Party might be attacking the program precisely because it is good for Hungarians."

PM Orban emphasized that his government previously had to rescue a million people from the trap of foreign currency loans, and according to EU statistics, they have also lifted a million people out of poverty through employment.

Those who are criticizing this program have never done anything like this before—that's why they don’t understand it,

Orban added.

The war next door is hampering the full potential of the Hungarian economy. With a ceasefire and peace this will change, he noted. He acknowledged that while there are risks to launching such a housing program in the current international climate, adjustments have already been made. He revealed he originally wanted to announce the Home Start as early as March.

The Prime Minister also addressed ongoing trade tensions: "A trade war has broken out between the U.S. and the EU, with tariffs changing by more than 20%, which is threatening European jobs." Thisis why a Job Protection and Industry Defense Action Plan was needed—to counter the impact in Hungary of the EU's poor decisions.

Yes to Russia-Europe Summit, No to Ursula von der Leyen Negotiating

PM Orban reiterated that EU sanctions will only be lifted if the U.S. and Russian presidents reach an agreement. He criticized EU leaders, saying: "They’ve fallen asleep at the wheel." He proposed that instead of EU institutional leaders, the German Chancellor and French President should travel to Moscow to negotiate on behalf of Europe.
"There has to be a Russia–Europe summit," he urged. "If there's a Russia–U.S. summit, peace is possible, but Europe will be left out. So, the sooner a Russia–Europe summit happens, the better."

At the end of the interview, PM Orban spoke about what he called a political "bombshell" in the U.S., claiming that:
"The Democratic administration, Soros's foundations and paid media agreed to fabricate a false narrative about Donald Trump's ties to Russia."
He warned that the same forces are present in Hungary:
"The Soros foundations, the dollar media, and Brussels are all here. They are continuously launching disinformation campaigns against Hungary, trying to bring a Brussels puppet government to power."

Cover photo: Hungarian Prime Minister Viktor Orban on Kossuth Radio (Photo: MTI / Prime Minister’s Press Office / Vivien Cher Benko)