<?xml version="1.0" encoding="UTF-8"?><rss xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:atom="http://www.w3.org/2005/Atom" version="2.0" xmlns:itunes="http://www.itunes.com/dtds/podcast-1.0.dtd" xmlns:googleplay="http://www.google.com/schemas/play-podcasts/1.0"><channel><title><![CDATA[Marketingcountry - Critical Hungary Blog: Daily Distortion]]></title><description><![CDATA[Where the system gets personal. How big systems and cultures quietly erode income, dignity, and daily life. A Tenth Man Rule look at the stories we’re sold—and what really shapes our world.
]]></description><link>https://www.marketingcountry.hu/s/dailydistortion</link><image><url>https://substackcdn.com/image/fetch/$s_!_Tfr!,w_256,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc05cc193-4551-47de-ae81-dfd52e1705ca_925x925.png</url><title>Marketingcountry - Critical Hungary Blog: Daily Distortion</title><link>https://www.marketingcountry.hu/s/dailydistortion</link></image><generator>Substack</generator><lastBuildDate>Tue, 07 Apr 2026 09:50:17 GMT</lastBuildDate><atom:link href="https://www.marketingcountry.hu/feed" rel="self" type="application/rss+xml"/><copyright><![CDATA[© zoltan bodo - marketingcountry I critical hungary blog]]></copyright><language><![CDATA[en]]></language><webMaster><![CDATA[criticalhungary@substack.com]]></webMaster><itunes:owner><itunes:email><![CDATA[criticalhungary@substack.com]]></itunes:email><itunes:name><![CDATA[Zoltan Bodo]]></itunes:name></itunes:owner><itunes:author><![CDATA[Zoltan Bodo]]></itunes:author><googleplay:owner><![CDATA[criticalhungary@substack.com]]></googleplay:owner><googleplay:email><![CDATA[criticalhungary@substack.com]]></googleplay:email><googleplay:author><![CDATA[Zoltan Bodo]]></googleplay:author><itunes:block><![CDATA[Yes]]></itunes:block><item><title><![CDATA[A Leadership Culture That Holds Back]]></title><description><![CDATA[Diagnosing Hungarian Realities Through the Lens of Organizational Dysfunction]]></description><link>https://www.marketingcountry.hu/p/a-leadership-culture-that-holds-back</link><guid isPermaLink="false">https://www.marketingcountry.hu/p/a-leadership-culture-that-holds-back</guid><dc:creator><![CDATA[Zoltan Bodo]]></dc:creator><pubDate>Thu, 20 Nov 2025 09:11:38 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!r8zU!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f24c396-594f-4143-8511-c448df0bcba4_1080x720.jpeg" length="0" type="image/jpeg"/><content:encoded><![CDATA[<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!r8zU!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f24c396-594f-4143-8511-c448df0bcba4_1080x720.jpeg" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!r8zU!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f24c396-594f-4143-8511-c448df0bcba4_1080x720.jpeg 424w, https://substackcdn.com/image/fetch/$s_!r8zU!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f24c396-594f-4143-8511-c448df0bcba4_1080x720.jpeg 848w, https://substackcdn.com/image/fetch/$s_!r8zU!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f24c396-594f-4143-8511-c448df0bcba4_1080x720.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!r8zU!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f24c396-594f-4143-8511-c448df0bcba4_1080x720.jpeg 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!r8zU!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f24c396-594f-4143-8511-c448df0bcba4_1080x720.jpeg" width="1080" height="720" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/4f24c396-594f-4143-8511-c448df0bcba4_1080x720.jpeg&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:720,&quot;width&quot;:1080,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:27625,&quot;alt&quot;:&quot;brown game pieces on white surface&quot;,&quot;title&quot;:null,&quot;type&quot;:&quot;image/jpeg&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="brown game pieces on white surface" title="brown game pieces on white surface" srcset="https://substackcdn.com/image/fetch/$s_!r8zU!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f24c396-594f-4143-8511-c448df0bcba4_1080x720.jpeg 424w, https://substackcdn.com/image/fetch/$s_!r8zU!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f24c396-594f-4143-8511-c448df0bcba4_1080x720.jpeg 848w, https://substackcdn.com/image/fetch/$s_!r8zU!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f24c396-594f-4143-8511-c448df0bcba4_1080x720.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!r8zU!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F4f24c396-594f-4143-8511-c448df0bcba4_1080x720.jpeg 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a><figcaption class="image-caption">Photo by <a href="https://unsplash.com/@markusspiske">Markus Spiske</a> on <a href="https://unsplash.com">Unsplash</a></figcaption></figure></div><p><em>Hungary is rarely examined as an organization, yet its stagnation becomes stark once we use the diagnostic tools of dysfunctional institutions and look at how its elites lead. In any large organization, leaders shape culture: healthy cultures evolve, align with mission, and build trust and coordination; unhealthy ones, sustained by self-interested leadership, drift, constrain, and quietly sabotage progress. Today Hungary increasingly resembles the latter: elite-driven short-termism, compliance-over-initiative norms, mismatched values, low trust, and a mythology built on survival rather than growth. This is less a national character flaw than a leadership and governance failure&#8212;the result of elites who keep the mission vague and the operating culture optimized for control, not creativity. Until those who run the &#8220;Hungary organization&#8221; treat culture as a strategic asset and commit to a future-facing mission, the country will keep running on an obsolete operating system built for endurance, not advancement.</em></p><div><hr></div><p></p><p>We rarely talk about Hungary as an organization. I did that once with the <em><a href="https://www.marketingcountry.hu/p/would-you-red-card-your-ceo">Would You Red Card Your CEO?</a></em> contrarian essay.</p><p>We talk about it as a nation, a long historical arc, a story of grievances and victories. But if we want to understand why Hungary keeps failing to modernize, we may need a different lens&#8212;one borrowed from organizational science.</p><p>Organizational scholars like <strong>Edgar Schein<a class="footnote-anchor" data-component-name="FootnoteAnchorToDOM" id="footnote-anchor-1" href="#footnote-1" target="_self">1</a></strong> argue that culture is not an abstraction; it is the operating system of any institution. Culture either promotes effectiveness or it destroys it. There is no neutral ground. And crucially, as Schein repeatedly emphasizes, <strong>leadership is the primary source of culture</strong>. Leaders create, reinforce, and reproduce the norms that determine how an organization behaves.</p><p>If we apply this (contrarian) logic to Hungary&#8212;and examine it the way Schein or Gareth Morgan might examine a large, poorly led corporation&#8212;the country&#8217;s stagnation becomes far easier to understand. Hungary increasingly resembles a <strong>legacy organization</strong> whose leaders maintain outdated routines because those routines serve their interests. Policy tweaks cannot overcome this deeper cultural-structural problem.</p><p>Below, I use Schein&#8217;s classic cultural diagnostic&#8212;twelve elements widely used in organizational analysis&#8212;to map Hungary&#8217;s operating culture. The picture is uncomfortable but clarifying.</p><p><strong>1. Observed Behaviors: Daily Survival Mode</strong></p><p>Schein calls observed behaviors the &#8220;surface level&#8221; of culture. In Hungary, these behaviors signal an organization trapped in short-termism: survival over strategy, improvisation over planning, and conflict avoidance over coordination.</p><blockquote><p>These behaviors are not the traits of the people; they are outputs of a leadership class that rewards compliance and tactical survival rather than long-term thinking.</p></blockquote><p><strong>2. Group Norms: Compliance Over Initiative</strong></p><p>According to Amy Edmondson<a class="footnote-anchor" data-component-name="FootnoteAnchorToDOM" id="footnote-anchor-2" href="#footnote-2" target="_self">2</a>, psychological safety is foundational to innovation. Hungary has the opposite. Informal norms push people toward staying quiet, showing loyalty, and avoiding visibility. Initiative is often punished; risk-taking is coded as na&#239;ve. Innovation is tolerated only if it doesn&#8217;t disrupt elite networks.</p><blockquote><p>This is not accidental&#8212;it is a leadership-produced norm system where predictability is valued over creativity.</p></blockquote><p><strong>3. Espoused Values: &#8220;We Value Hard Work&#8221;&#8212;But Do We?</strong></p><p>Chris Argyris<a class="footnote-anchor" data-component-name="FootnoteAnchorToDOM" id="footnote-anchor-3" href="#footnote-3" target="_self">3</a> distinguishes between <em>espoused values</em> (what leaders say) and <em>theories-in-use</em> (what leaders reward).<br>Hungarian elites publicly praise hard work, competitiveness, and unity.<br>But everyday life reveals operative values shaped by leadership incentives: suspicion, defensive individualism, loyalty networks, and informal workaround behavior.</p><blockquote><p>The gap between rhetoric and reality is one of Hungary&#8217;s deepest structural failures.</p></blockquote><p><strong>4. Formal Philosophy: An Outdated Operating Manual</strong></p><p>Schein notes that organizations rely on underlying philosophies&#8212;deep stories about who they are and why they exist. Hungary&#8217;s philosophy, as cultivated by its elites, is rooted in grievance, historical trauma, and defensive exceptionalism. </p><blockquote><p>This narrative once helped maintain identity under threat. Today, it functions like an obsolete mission statement no CEO dares to rewrite&#8212;useful for legitimacy but disastrous for modernization.</p></blockquote><p><strong>5. The Rules of the Game: Loyalty First, Competence Optional</strong></p><p>Gareth Morgan&#8217;s<a class="footnote-anchor" data-component-name="FootnoteAnchorToDOM" id="footnote-anchor-4" href="#footnote-4" target="_self">4</a> metaphor of the organization as a <em>political system</em> is painfully accurate here. Everyone knows the real organizational rules: connections beat competence, access beats performance, and &#8220;don&#8217;t challenge the hierarchy&#8221; beats &#8220;fix the problem.&#8221;</p><blockquote><p>These rules are not spontaneous norms; they are <strong>leadership-imposed incentives</strong> that keep the system closed, predictable, and controllable.</p></blockquote><p><strong>6. Climate: A Permanent Low-Trust Environment</strong></p><p>Organizational climate, Schein says, is the emotional atmosphere leaders create through incentives and communication. Hungary&#8217;s climate is dominated by low trust, fatigue, resignation, and minimal expectations.</p><blockquote><p>This climate is not cultural fate&#8212;it is the natural result of leaders treating transparency as a vulnerability and accountability as a threat.</p></blockquote><p><strong>7. Embedded Skills: Improvisation as a Core Competency</strong></p><p>Hungarians are exceptionally adaptive. Improvisation&#8212;&#252;gyesked&#233;s&#8212;is Hungary&#8217;s most embedded skill. Karl Weick<a class="footnote-anchor" data-component-name="FootnoteAnchorToDOM" id="footnote-anchor-5" href="#footnote-5" target="_self">5</a> shows that when formal systems fail, people develop makeshift practices to keep the organization functioning. That is I wrote about corruption is a social resilience <a href="https://www.marketingcountry.hu/p/corruption-as-a-form-of-adaptive">here</a>.</p><p>Hungarians are superb improvisers because leadership has failed to build systems that reduce the need for improvisation. </p><blockquote><p>Improvisation is not a strategy; it is a coping mechanism.</p></blockquote><p><strong>8. Habits of Thinking: Pessimistic Paradigms</strong></p><p>Schein emphasizes that organizational paradigms&#8212;the shared assumptions&#8212;shape what people believe is possible. The dominant paradigm in Hungary is: <em>&#8220;Nothing will change because nothing ever changes.&#8221;</em></p><blockquote><p>This pessimism is not a national trait; it is the predictable cognitive outcome of leadership that discourages autonomy, experimentation, and long-term planning.</p></blockquote><p><strong>9. Shared Meanings: Success = Survival</strong></p><p>Weick&#8217;s sensemaking theory shows how organizations define success. In many societies, success means achievement. In Hungary, success often means survival: avoiding risks, staying invisible, minimizing exposure.</p><blockquote><p>Why? Because elite leadership has long rewarded stability over initiative, loyalty over achievement.</p></blockquote><p><strong>10. Metaphors and Symbols: The Romantic Past</strong></p><p>Schein notes that symbols express an organization&#8217;s deepest assumptions.<br>Hungary&#8217;s elite-driven symbols&#8212;heroes, martyrdom, lost territory, eternal struggle&#8212;anchor identity in the past.</p><blockquote><p>This is the equivalent of a company whose leadership constantly celebrates what it used to be instead of articulating what it aims to become.</p></blockquote><p><strong>11. Artifacts: Institutions Frozen in Time</strong></p><p>Artifacts are the visible manifestations of culture. Hungary&#8217;s key institutions&#8212;schools, bureaucracies, media&#8212;behave like legacy systems. They preserve old workflows, resist new ones, and signal stagnation.</p><blockquote><p>These artifacts embody leadership decisions and not public preference that favor control, centralization, and predictability over modernization and agility.</p></blockquote><p><strong>12. Myths and Stories: An Elite-Driven Addiction to Victimhood</strong></p><p>Weick shows that stories are how organizations explain their world. That is why every organization has internal myths. Hungary&#8217;s dominant stories revolve around betrayal, external threats, heroic failure, and permanent vulnerability.</p><blockquote><p>These once strengthened cohesion.<br>Now they anchor the nation to dysfunction because elites continually reproduce them to justify centralized control and low accountability.</p></blockquote><p><strong>Core Diagnosis: A Leadership Culture Misaligned With Any Modern Mission</strong></p><p>If Hungary were a corporation, any consultant using the Kotter&#8211;Schein framework would deliver the same verdict:</p><p><strong>The leadership culture no longer supports the mission.</strong><br>It supports:</p><ul><li><p>survival, not progress</p></li><li><p>control, not creativity</p></li><li><p>loyalty, not competence</p></li><li><p>homogeneity, not innovation</p></li></ul><p>This is not a failure of the population&#8212;it is a failure of leadership incentives.</p><p><strong>What Needs to Change: Leadership Must Treat Culture as Strategy</strong></p><p>Organizational change literature&#8212;from Schein to Kotter<a class="footnote-anchor" data-component-name="FootnoteAnchorToDOM" id="footnote-anchor-6" href="#footnote-6" target="_self">6</a> to Amy Edmondson&#8212;is unequivocal:<br>Culture does not change from below.<br>It changes when leaders redefine:</p><ul><li><p>the mission</p></li><li><p>the incentives</p></li><li><p>the norms</p></li><li><p>the stories</p></li><li><p>the symbols</p></li><li><p>the expectations</p></li></ul><p>Hungary&#8217;s elites&#8212;political, economic, administrative, cultural, academic&#8212;have avoided doing this because the existing culture serves them.</p><p>But a modern nation cannot thrive with a leadership culture optimized for a 20th-century threat environment.</p><p><strong>Closing Thought</strong></p><p>Hungary&#8217;s stagnation is not a moral failure of its people.<br>It is an organizational failure produced by a leadership class that maintains an outdated operating system.</p><p>Cultures can change.<br>But only when leaders stop treating the past as a shield and start treating the future as a responsibility.</p><p>Hungary doesn&#8217;t need a new ideology.<br><strong>It needs a new leadership culture&#8212;and a mission that finally faces forward.</strong></p><p></p><div><hr></div><p><em>Disagree? Good. I don&#8217;t write to be right&#8212;I write to be tested. Bring your &#8220;Tenth Man&#8221; view, your sharpest counterpoint, or even a quiet doubt. Sometimes the most useful critique is the one that unsettles my own thinking.</em></p><div><hr></div><p><em>Don&#8217;t forget to subscribe for more Critical Hungary Insights!</em></p><p></p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.marketingcountry.hu/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe now&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.marketingcountry.hu/subscribe?"><span>Subscribe now</span></a></p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.marketingcountry.hu/p/a-leadership-culture-that-holds-back?utm_source=substack&utm_medium=email&utm_content=share&action=share&quot;,&quot;text&quot;:&quot;Share&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.marketingcountry.hu/p/a-leadership-culture-that-holds-back?utm_source=substack&utm_medium=email&utm_content=share&action=share"><span>Share</span></a></p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.marketingcountry.hu/p/a-leadership-culture-that-holds-back/comments&quot;,&quot;text&quot;:&quot;Leave a comment&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.marketingcountry.hu/p/a-leadership-culture-that-holds-back/comments"><span>Leave a comment</span></a></p><p></p><p></p><p></p><div class="footnote" data-component-name="FootnoteToDOM"><a id="footnote-1" href="#footnote-anchor-1" class="footnote-number" contenteditable="false" target="_self">1</a><div class="footnote-content"><p><em>A foundational work on how leaders create, shape, and embed organizational culture</em>:<em> </em>Schein, Edgar H. (2010). <em>Organizational Culture and Leadership</em> (4th edition). San Francisco, CA: Jossey-Bass.</p></div></div><div class="footnote" data-component-name="FootnoteToDOM"><a id="footnote-2" href="#footnote-anchor-2" class="footnote-number" contenteditable="false" target="_self">2</a><div class="footnote-content"><p><em>The leading contemporary work on psychological safety and its role in enabling learning, innovation, and open communication: </em>Edmondson, Amy C. (2018). <em>The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation, and Growth</em>. Hoboken, NJ: John Wiley &amp; Sons.</p></div></div><div class="footnote" data-component-name="FootnoteToDOM"><a id="footnote-3" href="#footnote-anchor-3" class="footnote-number" contenteditable="false" target="_self">3</a><div class="footnote-content"><p><em>Key theory distinguishing between espoused values and values-in-use, explaining gaps between what leaders say and what they do: </em>Argyris, Chris &amp; Sch&#246;n, Donald A. (1996). <em>Organizational Learning II: Theory, Method, and Practice</em>. Reading, MA: Addison-Wesley.</p></div></div><div class="footnote" data-component-name="FootnoteToDOM"><a id="footnote-4" href="#footnote-anchor-4" class="footnote-number" contenteditable="false" target="_self">4</a><div class="footnote-content"><p><em>A classic exploration of organizational metaphors, showing how culture, power, and meaning structure institutional behavior: </em>Morgan, Gareth (2006). <em>Images of Organization</em> (Updated edition). Thousand Oaks, CA: Sage Publications.</p></div></div><div class="footnote" data-component-name="FootnoteToDOM"><a id="footnote-5" href="#footnote-anchor-5" class="footnote-number" contenteditable="false" target="_self">5</a><div class="footnote-content"><p><em>A central text on how organizations construct meaning, identity, and shared interpretations through sensemaking: </em>Weick, Karl E. (1995). <em>Sensemaking in Organizations</em>. Thousand Oaks, CA: Sage Publications.</p></div></div><div class="footnote" data-component-name="FootnoteToDOM"><a id="footnote-6" href="#footnote-anchor-6" class="footnote-number" contenteditable="false" target="_self">6</a><div class="footnote-content"><p><em>A foundational framework on organizational transformation and the leadership actions required to shift culture: </em>Kotter, John P. (1996). <em>Leading Change</em>. Boston, MA: Harvard Business School Press.</p><p></p></div></div>]]></content:encoded></item><item><title><![CDATA[Why Hungarian Banks Fought Revolut]]></title><description><![CDATA[Not to Protect You, But to Protect Their Economic Rents]]></description><link>https://www.marketingcountry.hu/p/why-hungarian-banks-fought-revolut</link><guid isPermaLink="false">https://www.marketingcountry.hu/p/why-hungarian-banks-fought-revolut</guid><dc:creator><![CDATA[Zoltan Bodo]]></dc:creator><pubDate>Thu, 13 Nov 2025 10:22:24 GMT</pubDate><enclosure url="https://images.unsplash.com/photo-1612795459707-1002f77720d2?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wzMDAzMzh8MHwxfHNlYXJjaHw2fHxyZXZvbHV0fGVufDB8fHx8MTc2Mjk4OTAyMXww&amp;ixlib=rb-4.1.0&amp;q=80&amp;w=1080" length="0" type="image/jpeg"/><content:encoded><![CDATA[<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://images.unsplash.com/photo-1612795459707-1002f77720d2?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wzMDAzMzh8MHwxfHNlYXJjaHw2fHxyZXZvbHV0fGVufDB8fHx8MTc2Mjk4OTAyMXww&amp;ixlib=rb-4.1.0&amp;q=80&amp;w=1080" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://images.unsplash.com/photo-1612795459707-1002f77720d2?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wzMDAzMzh8MHwxfHNlYXJjaHw2fHxyZXZvbHV0fGVufDB8fHx8MTc2Mjk4OTAyMXww&amp;ixlib=rb-4.1.0&amp;q=80&amp;w=1080 424w, https://images.unsplash.com/photo-1612795459707-1002f77720d2?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wzMDAzMzh8MHwxfHNlYXJjaHw2fHxyZXZvbHV0fGVufDB8fHx8MTc2Mjk4OTAyMXww&amp;ixlib=rb-4.1.0&amp;q=80&amp;w=1080 848w, https://images.unsplash.com/photo-1612795459707-1002f77720d2?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wzMDAzMzh8MHwxfHNlYXJjaHw2fHxyZXZvbHV0fGVufDB8fHx8MTc2Mjk4OTAyMXww&amp;ixlib=rb-4.1.0&amp;q=80&amp;w=1080 1272w, https://images.unsplash.com/photo-1612795459707-1002f77720d2?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wzMDAzMzh8MHwxfHNlYXJjaHw2fHxyZXZvbHV0fGVufDB8fHx8MTc2Mjk4OTAyMXww&amp;ixlib=rb-4.1.0&amp;q=80&amp;w=1080 1456w" sizes="100vw"><img src="https://images.unsplash.com/photo-1612795459707-1002f77720d2?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wzMDAzMzh8MHwxfHNlYXJjaHw2fHxyZXZvbHV0fGVufDB8fHx8MTc2Mjk4OTAyMXww&amp;ixlib=rb-4.1.0&amp;q=80&amp;w=1080" width="4896" height="3264" data-attrs="{&quot;src&quot;:&quot;https://images.unsplash.com/photo-1612795459707-1002f77720d2?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wzMDAzMzh8MHwxfHNlYXJjaHw2fHxyZXZvbHV0fGVufDB8fHx8MTc2Mjk4OTAyMXww&amp;ixlib=rb-4.1.0&amp;q=80&amp;w=1080&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:3264,&quot;width&quot;:4896,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:&quot;black and white laptop computer&quot;,&quot;title&quot;:null,&quot;type&quot;:&quot;image/jpg&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="black and white laptop computer" title="black and white laptop computer" srcset="https://images.unsplash.com/photo-1612795459707-1002f77720d2?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wzMDAzMzh8MHwxfHNlYXJjaHw2fHxyZXZvbHV0fGVufDB8fHx8MTc2Mjk4OTAyMXww&amp;ixlib=rb-4.1.0&amp;q=80&amp;w=1080 424w, https://images.unsplash.com/photo-1612795459707-1002f77720d2?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wzMDAzMzh8MHwxfHNlYXJjaHw2fHxyZXZvbHV0fGVufDB8fHx8MTc2Mjk4OTAyMXww&amp;ixlib=rb-4.1.0&amp;q=80&amp;w=1080 848w, https://images.unsplash.com/photo-1612795459707-1002f77720d2?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wzMDAzMzh8MHwxfHNlYXJjaHw2fHxyZXZvbHV0fGVufDB8fHx8MTc2Mjk4OTAyMXww&amp;ixlib=rb-4.1.0&amp;q=80&amp;w=1080 1272w, https://images.unsplash.com/photo-1612795459707-1002f77720d2?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wzMDAzMzh8MHwxfHNlYXJjaHw2fHxyZXZvbHV0fGVufDB8fHx8MTc2Mjk4OTAyMXww&amp;ixlib=rb-4.1.0&amp;q=80&amp;w=1080 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a><figcaption class="image-caption">Photo by <a href="https://unsplash.com/@sonance">Viktor Forgacs</a> on <a href="https://unsplash.com">Unsplash</a></figcaption></figure></div><p><em>Hungarian banks have spent years quietly taxing everyday life &#8212; fees on every move, bad FX, high rates while your HUF slowly evaporates &#8212; and Revolut&#8217;s low-cost, transparent app exposed that it never had to be this way. Now the push to &#8220;regulate&#8221; and domesticate Revolut isn&#8217;t about protecting you, it&#8217;s about pulling your money back onto their rails so that when it comes to real sums &#8212; flats, mortgages, long-term savings &#8212; they can still decide the terms and punish you for escaping their system in the everyday.</em></p><div><hr></div><p>A couple is selling their flat in Budapest. They&#8217;re not rich, not investors &#8212; just moving to a slightly bigger place because they finally have a kid on the way or they. They&#8217;ve been using Revolut for a while: low fees, clean app, instant notifications, great FX exchange rate, no hidden costs. When the buyer signs the preliminary contract, they give him their Revolut Hungarian forint (HUF) account to send the deposit and downpayment. The money arrives. They see it in the app, breathe out, and start planning the move.</p><p>The buyer, meanwhile, goes to his (specific) Hungarian bank to arrange the mortgage for the rest of the price. There&#8217;s the usual process: documents, income statements, approvals, more papers. Weeks go by. Then one day the bank calls him back:</p><blockquote><p>There&#8217;s a problem. First, we can&#8217;t disburse the mortgage to a Revolut account. Second, we cannot accept downpayment paid to Revolut accounts, therefore tell the seller to refund the deposit and downpayment, give you a proper Hungarian HUF account. Once the money goes back and you have a local bank account from the seller, we&#8217;ll continue.</p></blockquote><p>The buyer stares at the phone.</p><p>The contract is signed. The sellers have already mentally moved. The deposit and downpayment is sitting safely on their Revolut. Now his bank is basically saying: go back, unwind what&#8217;s already done, and pull the sellers into our system too &#8212; or you&#8217;re not getting your loan.</p><p>He calls the sellers, embarrassed:</p><blockquote><p>I&#8217;m sorry, the bank says they won&#8217;t pay out the mortgage to Revolut. They want you to give a Hungarian bank account. They even told me to ask you to send back the deposit and downpayment first, and then I should pay it again to your local bank.</p></blockquote><p>The sellers are confused and angry. Why should they open or use a more expensive Hungarian account, with significantly higher fees and worse conditions, just to make the buyer&#8217;s bank happy? Why should they reverse a perfectly valid payment that everyone agreed to?</p><p>But they also know the truth: if the buyer doesn&#8217;t get the mortgage, selling is getting  complicated. So now the bank isn&#8217;t just deciding how the buyer can bank. It is indirectly deciding how the seller must bank as well.</p><p>Not by talking to them, not by regulation, but by holding the buyer&#8217;s mortgage hostage. </p><p><strong>God bless freedom, rule-of-law and consumer rights!</strong></p><p>On paper, this is &#8220;risk policy&#8221; and &#8220;procedural requirements&#8221;.</p><p>In reality, it&#8217;s a very simple message to everyone involved:</p><blockquote><p>You can play with your shiny foreign fintech app for everyday things, but when it comes to real money &#8212; flats, mortgages, life decisions &#8212;you will come back to us, on our terms.</p></blockquote><p>That&#8217;s Hungarian reality in 2025. </p><p>This is what the fight about Revolut looks like, not in press releases, but at the kitchen table.</p><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.marketingcountry.hu/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">Thanks for reading Marketingcountry - Critical Hungary Blog! Subscribe for free to receive new posts and support my work.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><p><strong>For years, being a normal Hungarian bank customer felt like paying a quiet tax on existing.</strong></p><p>You opened an account because your employer told you to (even though, in theory, you have the constitutional right to be paid in cash). You took the card they pushed at you. Every month, a little money disappeared: account management fee, card fee, SMS fee, transfer fee, &#8220;whatever-we-feel-like&#8221; fee &#8212; which easily adds up to a few hundred euros a year. You didn&#8217;t really understand the statements, but you understood the pattern: the bank always gets paid.</p><p>You weren&#8217;t a customer. You were yield.</p><p>The banks did well. Very well. FX denominated mortgage schemes (scams), above-average profits, year after year, in a small market where everyone politely pretended there was &#8220;competition,&#8221; but somehow the price of being banked never really came down. They invested in marble floors, owned glass buildings, branding, political connections &#8211; and called that &#8220;stability.&#8221;</p><p>Then one day, someone at work or in the family said:</p><blockquote><p>Have you tried Revolut?</p></blockquote><p>You download it, mostly out of curiosity. Two minutes later you have a card in your phone, physical card shipped in 24 hours for free, and a balance in an app that looks like it was designed this decade. You test it: top up, pay somewhere, buy a train ticket, send money to a friend.</p><p>And then you see it: </p><p>the FX rate is&#8230; close and not far from the actual FX rate.</p><p>No mysterious &#8220;bank buying/selling&#8221; spread, no hidden surcharge, no &#8220;surprise, we shaved 2&#8211;3% off because we can.&#8221;</p><p>You make a few more transactions. You realise: </p><ul><li><p>there&#8217;s no monthly account fee quietly eating you alive, your notifications are instant, clear, and human-readable,</p></li><li><p>sending money abroad doesn&#8217;t feel like being fined.</p></li></ul><p>At that moment, somewhere deep inside the system, an alarm goes off.</p><p>Because you&#8217;re not just saving a few hundred forints. You&#8217;re discovering a forbidden truth:</p><blockquote><p>being banked doesn&#8217;t have to mean being milked.</p></blockquote><p><strong>From the banks&#8217; perspective, Revolut was never just a &#8220;new competitor&#8221;. </strong></p><p>Competitors they can handle. They know how to copy a product, throw together an &#8220;offer,&#8221; tweak a fee, quietly coordinate. They&#8217;ve been doing that for decades &#8212; at least on paper. In reality, Hungarian banks were never really competing with each other; they were competing in who could milk customers more efficiently. And politics was always there to help.</p><p>Revolut was worse: it was a comparison point.</p><p>Side by side, it exposed the domestic game:</p><ul><li><p>Here is how much FX really costs.</p></li><li><p>Here is how fast a transfer can really be.</p></li><li><p>Here is what an app looks like when the goal is usability, not upsell.</p></li><li><p>Transparent and easy terms.</p></li></ul><p>Every forint you moved to Revolut was a forint that didn&#8217;t go into the comfortable Hungarian profit machine, ultimately landing as a saving to you.</p><p>You started using Revolut for trips. Then for online shopping. Then for saving a bit in different currencies. Then you thought: what if my salary went here? What if I stopped feeding the old bank so much?</p><p>Multiply that by hundreds of thousands of people (actually cc. 2 million Hungarian customers). Now you see why &#8220;regulating Revolut&#8221; suddenly became a national sport.</p><p><strong>Of course, that&#8217;s not how the story was told.</strong></p><p>The official lines were clean and responsible: we must protect Hungarian consumers; we must ensure fair competition; we must make sure everyone contributes to infrastructure and plays by the same rules.</p><p>Some of it wasn&#8217;t even wrong.</p><p>Revolut operated for a long time like a ghost in the Hungarian system: officially a Lithuanian bank with Hungarian customers. Complaints, supervision, accountability &#8211; all a bit abstract and far away. From a regulator&#8217;s point of view, that&#8217;s uncomfortable.</p><blockquote><p>But notice what&#8217;s missing from the speeches and press releases: You.</p></blockquote><p>Your reality in this story is simple:</p><ul><li><p>before Revolut: high fees, opaque pricing, sluggish digital services;</p></li><li><p>with Revolut: cheaper, clearer, faster.</p></li></ul><p>So when the same banks that have been quietly overcharging you for the last 30 years suddenly discover their inner consumer-rights activist, you&#8217;re allowed to be suspicious. Those banks who are not failing on the rule of law (i.e. FX denominated mortgages)</p><p>Because if this was really about you, the logic would be:</p><blockquote><p>Revolut proves the old price level is indefensible.</p></blockquote><p>Let&#8217;s regulate Revolut properly and force domestic banks to match or beat its value.</p><p>But that&#8217;s not what happened. It never happens in Hungary.</p><p>Instead, the energy went into pulling Revolut into the same cage: same domestic obligations, same infrastructure burdens, same regulatory leash. The goal is not to lift everyone up to the Revolut standard; the goal is to drag Revolut down into the old ecosystem where banks set the terms and you adjust.</p><p><strong>Look at the ATM debate. It&#8217;s a perfect example.</strong></p><p>Banks began talking about how Revolut was &#8220;free riding&#8221; on their ATM networks. Revolut customers withdraw cash from Hungarian ATMs, they said, but Revolut doesn&#8217;t pay to build or maintain those machines. That&#8217;s unfair, that distorts competition, they argued.</p><p>Technically, there&#8217;s a point there.</p><p>But notice how &#8212; overnight &#8212; the Hungarian ATM network stops being just infrastructure and becomes a moral weapon. Suddenly the big banks are protectors of fairness, defenders of investment, guardians of cash access in rural areas.</p><p>Not one of them opens with the more honest line:</p><blockquote><p>We&#8217;re upset because we built a system that lets us charge you a lot for basic services, and now some foreign app is teaching you that this was never inevitable.</p></blockquote><p><strong>And then there&#8217;s the politics.</strong></p><p>Hungary&#8217;s banking system isn&#8217;t just a market. It&#8217;s part utility, part political instrument. Banks are expected to help implement government and political schemes, channel subsidies, support &#8220;national strategic goals.&#8221; In exchange, they get a certain protection from reality. It&#8217;s a strategic partnership with politics!</p><p>Revolut doesn&#8217;t fit into that pact. It doesn&#8217;t care who&#8217;s in power. It doesn&#8217;t promise to support some flagship loan scheme. It just offers you an account that&#8217;s cheaper and better. At least till now!</p><p>From the state&#8217;s perspective, the more people move their money, salaries, and savings to Revolut, the more financial life escapes the domestic web of influence and data. That&#8217;s uncomfortable.</p><p>So &#8220;consumer protection&#8221; becomes a very convenient language for something else: reasserting control over a chunk of financial life that was slipping away.</p><p><strong>Where does this leave you?</strong></p><p>On paper, you&#8217;re supposed to be better off. Revolut is finally opening a proper Hungarian branch. You get a Hungarian account, Hungarian National Bank control, clearer local supervision, easier salary payments. It becomes a &#8220;real&#8221; Hungarian bank.</p><p>But here&#8217;s the contrarian fear:</p><ul><li><p>Revolut gets domesticated, normalised, tied into local obligations.</p></li><li><p>Domestic banks keep their habits, maybe making just enough cosmetic changes to claim they&#8217;re &#8220;innovating&#8221; (they already started to copy Revolut solutions).</p></li><li><p>The gap between them narrows &#8211; not because Hungarian banks seriously improve, but because Revolut is slowly pushed to look and behave like them.</p></li></ul><p>The rebellion becomes a brand. The app remains, but the escape route starts to close.</p><p>So yes, you&#8217;re right to say:</p><blockquote><p>Revolut was not milking the customers as banks do. Hungarian banks do what they want, make above-average profits.</p></blockquote><p>That&#8217;s the core of the story.</p><p>Hungarian banks did everything they could to regulate Revolut not because they suddenly care too much about you, but because for the first time in a long time, you had an option that didn&#8217;t feed their margins.</p><p>Revolut, with all its flaws, was a quiet consumer revolt in app form.</p><p>The real question now is simple and brutal:</p><p>Now that they&#8217;ve dragged the revolt into the tent and called it &#8220;regulation&#8221;,</p><p>will they be forced to change with it &#8212;</p><p>or will they simply change it and leave you right where you started?</p><p><em>On that day Revolut turns Devolut!</em></p><p></p><div><hr></div><p><em>Disagree? Good. I don&#8217;t write to be right&#8212;I write to be tested. Bring your &#8220;Tenth Man&#8221; view, your sharpest counterpoint, or even a quiet doubt. Sometimes the most useful critique is the one that unsettles my own thinking.</em></p><div><hr></div><p><em>Don&#8217;t forget to subscribe for more Critical Hungary Insights!</em></p><p></p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.marketingcountry.hu/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe now&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.marketingcountry.hu/subscribe?"><span>Subscribe now</span></a></p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.marketingcountry.hu/p/why-hungarian-banks-fought-revolut?utm_source=substack&utm_medium=email&utm_content=share&action=share&quot;,&quot;text&quot;:&quot;Share&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.marketingcountry.hu/p/why-hungarian-banks-fought-revolut?utm_source=substack&utm_medium=email&utm_content=share&action=share"><span>Share</span></a></p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.marketingcountry.hu/p/why-hungarian-banks-fought-revolut/comments&quot;,&quot;text&quot;:&quot;Leave a comment&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.marketingcountry.hu/p/why-hungarian-banks-fought-revolut/comments"><span>Leave a comment</span></a></p>]]></content:encoded></item><item><title><![CDATA[The House Always Wins]]></title><description><![CDATA[Strange Logic of Hungary&#8217;s Housing Market]]></description><link>https://www.marketingcountry.hu/p/the-house-always-wins</link><guid isPermaLink="false">https://www.marketingcountry.hu/p/the-house-always-wins</guid><dc:creator><![CDATA[Zoltan Bodo]]></dc:creator><pubDate>Wed, 01 Oct 2025 08:01:40 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!5Lhe!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff35a36ec-7f33-455b-8830-a19adbbb188e_1080x720.jpeg" length="0" type="image/jpeg"/><content:encoded><![CDATA[<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!5Lhe!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff35a36ec-7f33-455b-8830-a19adbbb188e_1080x720.jpeg" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!5Lhe!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff35a36ec-7f33-455b-8830-a19adbbb188e_1080x720.jpeg 424w, https://substackcdn.com/image/fetch/$s_!5Lhe!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff35a36ec-7f33-455b-8830-a19adbbb188e_1080x720.jpeg 848w, https://substackcdn.com/image/fetch/$s_!5Lhe!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff35a36ec-7f33-455b-8830-a19adbbb188e_1080x720.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!5Lhe!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff35a36ec-7f33-455b-8830-a19adbbb188e_1080x720.jpeg 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!5Lhe!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff35a36ec-7f33-455b-8830-a19adbbb188e_1080x720.jpeg" width="1080" height="720" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/f35a36ec-7f33-455b-8830-a19adbbb188e_1080x720.jpeg&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:720,&quot;width&quot;:1080,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:114570,&quot;alt&quot;:&quot;a close up of a typewriter with a real estate paper on it&quot;,&quot;title&quot;:null,&quot;type&quot;:&quot;image/jpeg&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="a close up of a typewriter with a real estate paper on it" title="a close up of a typewriter with a real estate paper on it" srcset="https://substackcdn.com/image/fetch/$s_!5Lhe!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff35a36ec-7f33-455b-8830-a19adbbb188e_1080x720.jpeg 424w, https://substackcdn.com/image/fetch/$s_!5Lhe!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff35a36ec-7f33-455b-8830-a19adbbb188e_1080x720.jpeg 848w, https://substackcdn.com/image/fetch/$s_!5Lhe!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff35a36ec-7f33-455b-8830-a19adbbb188e_1080x720.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!5Lhe!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff35a36ec-7f33-455b-8830-a19adbbb188e_1080x720.jpeg 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a><figcaption class="image-caption">Photo by <a href="true">Markus Winkler</a> on <a href="https://unsplash.com">Unsplash</a></figcaption></figure></div><p><em>Hungary&#8217;s housing market breaks the mold: with 91% ownership, low mobility, and minimal reliance on agents, what looks like inefficiency elsewhere functions here as a survival strategy. Bricks and mortar remain the only reliable safety net in a volatile economy. Government policy, however, runs against this logic&#8212;pouring subsidies into new, unaffordable builds that prop up developers and a narrow band of buyers. With so few new units and transactions, these programs cannot reshape the market; they only expose how housing policy serves industries more than households.</em></p><div><hr></div><p></p><p>Hungary&#8217;s real estate market runs on a set of unwritten rules&#8212; that are rarely questioned, yet deserve much closer scrutiny.</p><p>Beneath the surface, the housing market is full of peculiarities that raise more questions than answers.</p><p>Let&#8217;s break it down.</p><p></p><h3><strong>Hungarian Real Estate Market Oddities Explained</strong></h3><p>To understand the unique character of Hungary&#8217;s real estate market, a few key features stand out.</p><blockquote><p><strong>Ownership</strong>: First, home ownership is exceptionally high&#8212;over 91%&#8212;a figure far above the EU average. This stems from a mix of historical, cultural, and economic factors.</p></blockquote><p>During socialism, private property was restricted, but the transition of the 1990s saw a wave of <strong>privatisations</strong>, with apartments and houses sold off at very low prices. This allowed many families to secure ownership cheaply. At the same time, Hungary developed only a weak rental market: institutional investment in housing remained minimal, tenant protections limited, and renting widely seen as unstable and unattractive.</p><p>Culturally, ownership became deeply associated with <strong>security, family continuity, and social status.</strong> Intergenerational transfers&#8212;parents helping children buy or inherit property&#8212;further reinforced the cycle. The result is a system where <strong>owning a home is the rule, not the exception.</strong></p><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!_dWN!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa0fe0794-be95-49dc-88fd-c31750eee330_831x986.heic" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!_dWN!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa0fe0794-be95-49dc-88fd-c31750eee330_831x986.heic 424w, https://substackcdn.com/image/fetch/$s_!_dWN!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa0fe0794-be95-49dc-88fd-c31750eee330_831x986.heic 848w, https://substackcdn.com/image/fetch/$s_!_dWN!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa0fe0794-be95-49dc-88fd-c31750eee330_831x986.heic 1272w, https://substackcdn.com/image/fetch/$s_!_dWN!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa0fe0794-be95-49dc-88fd-c31750eee330_831x986.heic 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!_dWN!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa0fe0794-be95-49dc-88fd-c31750eee330_831x986.heic" width="831" height="986" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/a0fe0794-be95-49dc-88fd-c31750eee330_831x986.heic&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:986,&quot;width&quot;:831,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:50090,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image/heic&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https://www.marketingcountry.hu/i/168272767?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa0fe0794-be95-49dc-88fd-c31750eee330_831x986.heic&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="" srcset="https://substackcdn.com/image/fetch/$s_!_dWN!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa0fe0794-be95-49dc-88fd-c31750eee330_831x986.heic 424w, https://substackcdn.com/image/fetch/$s_!_dWN!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa0fe0794-be95-49dc-88fd-c31750eee330_831x986.heic 848w, https://substackcdn.com/image/fetch/$s_!_dWN!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa0fe0794-be95-49dc-88fd-c31750eee330_831x986.heic 1272w, https://substackcdn.com/image/fetch/$s_!_dWN!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa0fe0794-be95-49dc-88fd-c31750eee330_831x986.heic 1456w" sizes="100vw" loading="lazy"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><div><hr></div><blockquote><p><strong>Housing stock:</strong> According to the Hungarian Central Statistical Office, Hungary&#8217;s housing stock stood at 4.616 million units as of January 1, 2025.</p></blockquote><p>Since 2007 the yearly average housing stock increase was approximately 20k units. The average value is heavily skewed by the FX denominated mortgage loans period between 2007-2011 (see more related information in <a href="https://www.marketingcountry.hu/p/the-hungarian-mortgage-propaganda">The Hungarian Mortgage Propaganda</a> essay). However when comparing the 2025 January 1st data with 2024 same data, the increase was only approximately 12k unit.</p><p>Based on real estate transaction data, the overall transaction rate in 2024 was 2.5%. Applying this rate to the current housing stock translates into just over 115,000 transactions across the country in 2024.</p><p>At this level of ownership, though, the deeper question is whether such low growth is really a &#8220;problem&#8221; at all&#8212;or rather a <strong>sign of saturation, where the market has simply run out of new buyers and new demand.</strong> In other words, Hungary may not be building too little housing&#8212;it may already be <strong>as owned-out as a country can get&#8230; or is there still room for genuine organic growth?</strong></p><div id="datawrapper-iframe" class="datawrapper-wrap outer" data-attrs="{&quot;url&quot;:&quot;https://datawrapper.dwcdn.net/thVTi/1/&quot;,&quot;thumbnail_url&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/bff3cf9a-ddb2-4338-b28d-7b4acef6437b_1220x746.png&quot;,&quot;thumbnail_url_full&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/b0a001dc-1a21-49d8-a300-7c03c693125f_1220x870.png&quot;,&quot;height&quot;:425,&quot;title&quot;:&quot;Real Estate Transaction Rates&quot;,&quot;description&quot;:&quot;Number of Real Estate Transaction as % of Total Housing&quot;}" data-component-name="DatawrapperToDOM"><iframe id="iframe-datawrapper" class="datawrapper-iframe" src="https://datawrapper.dwcdn.net/thVTi/1/" width="730" height="425" frameborder="0" scrolling="no"></iframe><script type="text/javascript">!function(){"use strict";window.addEventListener("message",(function(e){if(void 0!==e.data["datawrapper-height"]){var t=document.querySelectorAll("iframe");for(var a in e.data["datawrapper-height"])for(var r=0;r<t.length;r++){if(t[r].contentWindow===e.source)t[r].style.height=e.data["datawrapper-height"][a]+"px"}}}))}();</script></div><div class="subscription-widget-wrap-editor" data-attrs="{&quot;url&quot;:&quot;https://www.marketingcountry.hu/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe&quot;,&quot;language&quot;:&quot;en&quot;}" data-component-name="SubscribeWidgetToDOM"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">Thanks for reading Marketingcountry - Critical Hungary Blog! Subscribe for free to receive new posts and support my work.</p></div><form class="subscription-widget-subscribe"><input type="email" class="email-input" name="email" placeholder="Type your email&#8230;" tabindex="-1"><input type="submit" class="button primary" value="Subscribe"><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><blockquote><p><strong>Real estate pricing: </strong>If we take 2015 as a baseline, real estate prices in Hungary had surged by 325.1% by Q3 2024&#8212;a staggering increase compared to an inflation index of around 165% over the same period.</p></blockquote><p>Looking at the shorter horizon, the <strong>three-year growth rate exceeded 35%</strong>, only slightly below the cumulative inflation rate of just over 39%. Still, it&#8217;s important to note that much of this growth was built on a <strong>relatively low starting base </strong>when compared with other European housing markets.</p><p>Currently the national average sqm prices are at slightly higher than &#8364;2.000, while average asking price is around cc. &#8364;180.000. While in Budapest the average sqm prices are higher than &#8364;3.450 based on <a href="https://koltozzbe.hu/statisztikak/">koltozzbe.hu statistics.</a> You are going to have a significant variation in the prices in different geographical regions or locations.</p><p>But this raises an uncomfortable question: <strong>is this price surge truly organic growth, or something else?</strong> Are we seeing genuine demand and purchasing power at work&#8212;or are prices inflated by speculative buying, distorted credit policies, or the lack of viable investment alternatives in Hungary&#8217;s economy? In other words, is the housing market reflecting real value, or is it simply the byproduct of a system where money has few other places to go?</p><div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!AaXJ!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe628e408-304f-41e3-8a89-d103cc09f030_528x368.png" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!AaXJ!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe628e408-304f-41e3-8a89-d103cc09f030_528x368.png 424w, 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srcset="https://substackcdn.com/image/fetch/$s_!AaXJ!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe628e408-304f-41e3-8a89-d103cc09f030_528x368.png 424w, https://substackcdn.com/image/fetch/$s_!AaXJ!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe628e408-304f-41e3-8a89-d103cc09f030_528x368.png 848w, https://substackcdn.com/image/fetch/$s_!AaXJ!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe628e408-304f-41e3-8a89-d103cc09f030_528x368.png 1272w, https://substackcdn.com/image/fetch/$s_!AaXJ!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fe628e408-304f-41e3-8a89-d103cc09f030_528x368.png 1456w" sizes="100vw" loading="lazy"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a></figure></div><p></p><blockquote><p><strong>Real estate brokerage paradox: </strong>Another striking oddity of Hungary&#8217;s housing market is the role&#8212;or rather, the lack of role&#8212;played by real estate agents.</p></blockquote><p><a href="https://blog.realmonitor.hu/2020/08/31/mennyi-ingatlanost-bir-el-a-piac-ingatlanoszam/">In most mature housing markets</a>, agents are central intermediaries. They handle 50&#8211;70% of transactions, professionalize the process, and shape public perceptions of value. In Hungary, the picture is radically different.</p><p>According to the Hungarian National Bank&#8217;s <em><a href="https://www.mnb.hu/letoltes/housing-market-report-2023-november.pdf?utm_source=chatgpt.com">2023 Housing Market Report</a></em>, only <strong>10.6%&#8211;13.1% of transactions involve agents</strong>. That means that out of roughly 115,000 housing deals a year, <strong>barely 12,000&#8211;16,000 pass through an agent at all.</strong> Yet an estimated <strong>8,000&#8211;10,000 agents</strong> (or more) compete for this sliver of the market. </p><p>The math is brutal: on average, each agent closes <strong>fewer than two transactions per year.</strong> Which raises the obvious question: <strong>how can there be so many agents for so little business?</strong></p><p>Unless, of course, the numbers don&#8217;t capture the full picture. Is the data misleading, incomplete&#8212;or is the Hungarian real estate profession built on something other than actual transactions?</p><p></p><h3>Rethinking Hungary&#8217;s Housing Market</h3><p>Step back, and the numbers tell a story almost the opposite of what conventional wisdom suggests. Commentators like to describe Hungary&#8217;s housing market as &#8220;underdeveloped&#8221; compared to Western Europe: weak rental markets, low agent penetration, uneven regional pricing. But what if those so-called shortcomings aren&#8217;t flaws at all? What if they are deliberate adaptations&#8212;features that make sense in a country shaped by volatility, inflation, and mistrust of institutions?</p><p>Take the home-ownership rate of more than 91%. From a Western perspective, it looks like an imbalance: proof of a broken rental sector and lack of institutional capital. But from inside Hungary, it can just as easily be read as a rational hedge against uncertainty. When inflation, currency swings, and political shocks have repeatedly wiped out savings, property becomes the default insurance policy. <em>It may not be efficient, but it is resilient.</em></p><p>Or consider prices. A 325% surge since 2015 screams &#8220;bubble&#8221; to outside observers. Yet Hungary&#8217;s market started from a historically depressed base. Even now, at around &#8364;2,000 per square meter nationally and &#8364;3,450 in Budapest, Hungary is still far cheaper than most European capitals. <strong>The surprise isn&#8217;t how high prices have climbed, but how long they lagged behind.</strong></p><p>Then there&#8217;s mobility. Barely 115,000 housing transactions take place each year in a country of nearly 10 million. By most standards, that looks like market stagnation. But again, <em>what if low churn isn&#8217;t failure but design?</em> In a society where homes are inherited, passed within families, and tied to identity, <strong>stability&#8212;not liquidity&#8212;is the point.</strong></p><p>Seen this way, Hungary&#8217;s housing market isn&#8217;t broken. It&#8217;s operating under its own set of rules. History, culture, and deep distrust of intermediaries have created a system that looks strange only if you expect it to behave like Germany, France, or the Netherlands. <strong>Property here is not primarily an asset class; it&#8217;s a survival strategy.</strong></p><p>But resilience comes with contradictions. The same features that protect households expose the flaws in government policy. <em>If nine in ten Hungarians already own their homes, what exactly is being solved by subsidies<a class="footnote-anchor" data-component-name="FootnoteAnchorToDOM" id="footnote-anchor-1" href="#footnote-1" target="_self">1</a> for new construction?</em> Are these programs designed to improve affordability, or to <em>manufacture demand for the construction industry?</em> With less than 2.5% of the housing stock changing hands each year and fewer than 15,000 new units built annually, <em>can subsidies move the needle at all&#8212;or are they little more than symbolic politics?</em></p><p>The bigger challenge is not quantity but quality: modernising Hungary&#8217;s vast existing stock with insulation, energy upgrades, and basic liveability improvements. <strong>Why should taxpayers underwrite new-build buyers&#8212;often middle- or upper-class families&#8212;while millions remain in outdated housing?</strong> Is it constitutional to subsidies with taxpayer money certain preferential segments? If the real goal is family welfare and population stability, <em>wouldn&#8217;t deep modernisation subsidies deliver more by cutting bills and raising living standards for everyone?</em></p><p>Which leads to a sharper suspicion. <strong>Housing subsidies may not be about households at all. They may be about channeling resources toward politically connected developers.</strong></p><p>Hungary&#8217;s housing story, then, is both one of survival and of distortion: a system that protects households in spite of volatility, <strong>but where policy increasingly seems designed to protect industries instead.</strong></p><p></p><div><hr></div><p><em>Disagree? Good. I don&#8217;t write to be right&#8212;I write to be tested. Bring your &#8220;Tenth Man&#8221; view, your sharpest counterpoint, or even a quiet doubt. Sometimes the most useful critique is the one that unsettles my own thinking.</em></p><div><hr></div><p><em>Don&#8217;t forget to subscribe for more Critical Hungary Insights!</em></p><p></p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.marketingcountry.hu/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe now&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.marketingcountry.hu/subscribe?"><span>Subscribe now</span></a></p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.marketingcountry.hu/p/the-house-always-wins?utm_source=substack&utm_medium=email&utm_content=share&action=share&quot;,&quot;text&quot;:&quot;Share&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.marketingcountry.hu/p/the-house-always-wins?utm_source=substack&utm_medium=email&utm_content=share&action=share"><span>Share</span></a></p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.marketingcountry.hu/p/the-house-always-wins/comments&quot;,&quot;text&quot;:&quot;Leave a comment&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.marketingcountry.hu/p/the-house-always-wins/comments"><span>Leave a comment</span></a></p><p></p><div class="footnote" data-component-name="FootnoteToDOM"><a id="footnote-1" href="#footnote-anchor-1" class="footnote-number" contenteditable="false" target="_self">1</a><div class="footnote-content"><p><em>Over the past ten years, Hungarian government has pursued an unusually interventionist housing policy, tying subsidies closely to family policy and demographic goals. Examples of major schemes :</em></p><p><em><a href="https://helpersmagazine.hu/new-3-housing-loan-to-first-time-owners-in-hungary/?utm_source=chatgpt.com">Interest-subsidized housing loans and fixed-rate schemes</a><br>In addition to CSOK, Hungary has introduced preferential housing loans with capped interest rates, especially for first-time buyers. For example, in 2024&#8211;2025 the government announced a new 3% fixed-rate housing loanavailable to first-time homeowners, supplementing the CSOK framework.</em></p><p><em><a href="https://en.wikipedia.org/wiki/Family_policy_in_Hungary?utm_source=chatgpt.com">CSOK &#8211; Csal&#225;di Otthonteremt&#233;si Kedvezm&#233;ny (&#8220;Family Home Creation Benefit&#8221;)</a><br>Launched in 2015, CSOK has become the flagship housing support program. Families with children (or even those committing to have children) receive non-refundable state grants and access to subsidized housing loans to buy, build, or renovate homes. The subsidy scales with the number of children and whether the property is new or used. CSOK has been repeatedly expanded, but always tied to family size and demographic incentives.</em></p><p></p></div></div>]]></content:encoded></item><item><title><![CDATA[Mystery Shopping Academic Machine]]></title><description><![CDATA[The Job Interview That Never Happened &#8212; and What It Revealed]]></description><link>https://www.marketingcountry.hu/p/the-job-interview-that-never-happened</link><guid isPermaLink="false">https://www.marketingcountry.hu/p/the-job-interview-that-never-happened</guid><dc:creator><![CDATA[Zoltan Bodo]]></dc:creator><pubDate>Mon, 28 Jul 2025 08:01:45 GMT</pubDate><enclosure url="https://substackcdn.com/image/fetch/$s_!_ro-!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa126e94e-8a67-40c3-aeee-13ff82f80a78_1080x720.jpeg" length="0" type="image/jpeg"/><content:encoded><![CDATA[<div class="captioned-image-container"><figure><a class="image-link image2 is-viewable-img" target="_blank" href="https://substackcdn.com/image/fetch/$s_!_ro-!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa126e94e-8a67-40c3-aeee-13ff82f80a78_1080x720.jpeg" data-component-name="Image2ToDOM"><div class="image2-inset"><picture><source type="image/webp" srcset="https://substackcdn.com/image/fetch/$s_!_ro-!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa126e94e-8a67-40c3-aeee-13ff82f80a78_1080x720.jpeg 424w, https://substackcdn.com/image/fetch/$s_!_ro-!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa126e94e-8a67-40c3-aeee-13ff82f80a78_1080x720.jpeg 848w, https://substackcdn.com/image/fetch/$s_!_ro-!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa126e94e-8a67-40c3-aeee-13ff82f80a78_1080x720.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!_ro-!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa126e94e-8a67-40c3-aeee-13ff82f80a78_1080x720.jpeg 1456w" sizes="100vw"><img src="https://substackcdn.com/image/fetch/$s_!_ro-!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa126e94e-8a67-40c3-aeee-13ff82f80a78_1080x720.jpeg" width="1080" height="720" data-attrs="{&quot;src&quot;:&quot;https://substack-post-media.s3.amazonaws.com/public/images/a126e94e-8a67-40c3-aeee-13ff82f80a78_1080x720.jpeg&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:720,&quot;width&quot;:1080,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:266052,&quot;alt&quot;:&quot;building interior with chandeliers and desks&quot;,&quot;title&quot;:null,&quot;type&quot;:&quot;image/jpeg&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:true,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}" class="sizing-normal" alt="building interior with chandeliers and desks" title="building interior with chandeliers and desks" srcset="https://substackcdn.com/image/fetch/$s_!_ro-!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa126e94e-8a67-40c3-aeee-13ff82f80a78_1080x720.jpeg 424w, https://substackcdn.com/image/fetch/$s_!_ro-!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa126e94e-8a67-40c3-aeee-13ff82f80a78_1080x720.jpeg 848w, https://substackcdn.com/image/fetch/$s_!_ro-!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa126e94e-8a67-40c3-aeee-13ff82f80a78_1080x720.jpeg 1272w, https://substackcdn.com/image/fetch/$s_!_ro-!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fa126e94e-8a67-40c3-aeee-13ff82f80a78_1080x720.jpeg 1456w" sizes="100vw" fetchpriority="high"></picture><div class="image-link-expand"><div class="pencraft pc-display-flex pc-gap-8 pc-reset"><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container restack-image"><svg role="img" width="20" height="20" viewBox="0 0 20 20" fill="none" stroke-width="1.5" stroke="var(--color-fg-primary)" stroke-linecap="round" stroke-linejoin="round" xmlns="http://www.w3.org/2000/svg"><g><title></title><path d="M2.53001 7.81595C3.49179 4.73911 6.43281 2.5 9.91173 2.5C13.1684 2.5 15.9537 4.46214 17.0852 7.23684L17.6179 8.67647M17.6179 8.67647L18.5002 4.26471M17.6179 8.67647L13.6473 6.91176M17.4995 12.1841C16.5378 15.2609 13.5967 17.5 10.1178 17.5C6.86118 17.5 4.07589 15.5379 2.94432 12.7632L2.41165 11.3235M2.41165 11.3235L1.5293 15.7353M2.41165 11.3235L6.38224 13.0882"></path></g></svg></button><button tabindex="0" type="button" class="pencraft pc-reset pencraft icon-container view-image"><svg xmlns="http://www.w3.org/2000/svg" width="20" height="20" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-maximize2 lucide-maximize-2"><polyline points="15 3 21 3 21 9"></polyline><polyline points="9 21 3 21 3 15"></polyline><line x1="21" x2="14" y1="3" y2="10"></line><line x1="3" x2="10" y1="21" y2="14"></line></svg></button></div></div></div></a><figcaption class="image-caption">Photo by <a href="true">Mathew Schwartz</a> on <a href="https://unsplash.com">Unsplash</a></figcaption></figure></div><div><hr></div><p><em>Real stories from real people reveal the unseen forces shaping our everyday lives</em>.<br><em>This essay dives into Hungary&#8217;s academic hiring process, exposing how rigid institutional culture and procedural formalities quietly stall meaningful change&#8212;wasting time, overlooking fresh perspectives, and masking resistance to true transformation.</em></p><div><hr></div><p></p><p>Sometimes mystery shopping isn&#8217;t about counters, stores, or restaurant chains &#8212; it&#8217;s about systems. <strong>Structures</strong>. <strong>Cultures</strong>.</p><p>I didn&#8217;t set out to conduct a mystery shopping assignment. But that&#8217;s exactly what this turned into.</p><p>It began when I applied for a role that, on paper, couldn&#8217;t have been a better fit &#8212; a senior, non-academic, director-level position at one of Hungary&#8217;s most prestigious technical universities. This wasn&#8217;t a casual move. It was deliberate: a chance to meaningfully contribute to an institution that publicly claims bold ambitions &#8212; more innovation, greater international relevance, stronger competitiveness.</p><p>At first glance, it looked like a genuine search. And to my quiet surprise &#8212; as someone seasoned in the private sector &#8212; I was shortlisted. <strong>Considering my age, this alone felt notable</strong>. Based on market insights, securing white-collar managerial roles above 50 is increasingly difficult, regardless of experience.</p><p>No HR buffer. Straight to a scheduled meeting with a senior university official.</p><p>The process started off as expected: structured, respectful. I received a confirmed interview time &#8212; 10 days out &#8212; giving me ample space to prepare.</p><p>Then the system began to reveal itself.</p><p></p><h4><strong>Scene One: &#8220;We&#8217;ll Need to Reschedule&#8221;</strong></h4><p>I&#8217;d cleared my schedule and was already en route to the university when the call came:<br><strong>&#8220;The hiring manager is tied up in another meeting. To allow enough time for a proper interview, we&#8217;ll need to reschedule.&#8221;</strong></p><p>Fair enough. Life happens. My default setting &#8212; professional, politically correct patience &#8212; kicked in. We rescheduled for the following week.</p><p>That attempt didn&#8217;t hold either. Three days before Round Two: another cancellation.<br>Then another date &#8212; several days out again.</p><p>By now, I&#8217;d had senior-level meetings with multibillion-dollar global firms that ran with more precision.</p><p>Three thoughts surfaced:</p><blockquote><p>They&#8217;re not operationally ready.<br>They&#8217;re not taking this process seriously.<br>Do I want to work in this kind of culture?</p></blockquote><p>Still, I played along. Rearranged my week. Showed up early. Came sharp and prepared &#8212; ready to talk strategy, innovation ecosystems, institutional transformation.</p><p>The interview lasted under 30 minutes. The senior official was courteous but pointedly remarked, <strong>&#8220;Good that you arrived early &#8212; so we can finish early.&#8221;</strong></p><p>The questions? Vague. Too broad to be serious. Too shallow to mean anything.<br>No curiosity. No engagement with my experience. No signal of real interest.</p><p>It wasn&#8217;t a conversation. It was a performance.<br>And I wasn&#8217;t the lead &#8212; maybe not even part of the cast.</p><p></p><h4><strong>Scene Two: A Process Without a Point</strong></h4><p>Two last-minute cancellations. A shallow, disengaged interview. This wasn&#8217;t sloppiness. It was choreography.</p><blockquote><p>Maybe they already had someone lined up.<br>Maybe I was there to add the appearance of &#8220;openness.&#8221;<br>Maybe they never intended to hire anyone outside the familiar network.</p></blockquote><p>In Hungary&#8217;s public institutions &#8212; especially in academia &#8212; procedural formality often masks strategic inertia. Everything looks orderly. Nothing moves.</p><p>This wasn&#8217;t a genuine search for leadership or innovation. It was a mystery shopping moment: a quiet stress test on how institutional rituals respond to outside expertise, seniority, or deviation from the norm.</p><p>To be clear, I don&#8217;t assume I was the best candidate. Fit matters.<br>But process matters, too. If someone is invited into the room, they deserve to be taken seriously.</p><p>A professional interview &#8212; even one that ends in a no &#8212; should reflect the values the institution claims to hold: transparency, respect, and engagement.</p><p></p><h4><strong>What This Was Really About</strong></h4><p>This wasn&#8217;t a missed opportunity.<br>It was a window &#8212; a clear view into how transformation fails.<br>Not in vision statements or strategic plans, but in small behaviors. Daily choices. Cultural defaults.</p><blockquote><p>The institution in question talks the talk.<br>It wants global recognition.<br>International partnerships.<br>A reputation for innovation and modernity.</p></blockquote><p>But transformation isn&#8217;t a communications strategy.<br>It&#8217;s not something you publish &#8212; it&#8217;s something you practice.</p><p>And that&#8217;s where the resistance lives.</p><p>What this accidental mystery shopping uncovered wasn&#8217;t chaos.<br>It was choreography. Familiar, quiet, and telling:</p><blockquote><p>Time is undervalued &#8212; especially if it belongs to an outsider.<br>Curiosity is limited.<br>Novel perspectives are tolerated, not welcomed.<br>Strategy may exist &#8212; but follow-through does not.</p></blockquote><p>When institutions invite outsiders into the room but fail to truly engage them, they don&#8217;t just waste time.</p><blockquote><p>They erode trust.<br>They signal that change is a headline &#8212; not a habit.<br>They burn credibility in the exact places they claim to be building it</p></blockquote><p></p><h4><strong>This Is Where the Tenth Man Rule Comes In</strong></h4><p>Contrarian Thinking Isn&#8217;t Provocation &#8212; It&#8217;s Hygiene</p><p>In any resilient institution, dissent isn&#8217;t dangerous.<br>It&#8217;s necessary. It&#8217;s how blind spots get exposed and groupthink is kept in check.</p><p>Contrarian thinking isn&#8217;t about disruption for its own sake &#8212; it&#8217;s about testing the system&#8217;s antibodies.<br>It&#8217;s institutional hygiene.</p><p>But when conformity is misread as professionalism, the Tenth Man doesn&#8217;t get debated &#8212; they get quietly screened out.<br>Filtered before the real conversation even begins.</p><p>That&#8217;s what this interview felt like.<br>Neither a poor or a good fit.<br>Not a clear &#8220;no.&#8221;</p><p>But a silent no to difference itself.<br>Not the wrong answer &#8212; the wrong question.</p><p></p><h4><strong>The Real Challenge Isn&#8217;t Strategy. It&#8217;s Culture.</strong></h4><p>Hungary, like many transitioning economies, has mastered the optics of modernization: strategic plans, institutional KPIs, bold vision statements.</p><p>But real change doesn&#8217;t come from PowerPoint.<br>It comes from behavior &#8212; in the room, in the moment, in the way people show up.</p><blockquote><p>Respect for time.<br>Presence in process.<br>Genuine curiosity.</p></blockquote><p>These aren&#8217;t minor gestures &#8212; they <em>are</em> the culture.</p><p>And when that culture is missing, no amount of vision documents can disguise the truth: the system isn&#8217;t ready.</p><p>Innovation demands tension. It grows through friction. It depends on voices <em>not</em> already seated at the table.</p><p>If an institution wants to lead, it must first learn to listen &#8212; especially when what it hears is unfamiliar.</p><p><em>Especially then.</em></p><p></p><h4><strong>No Victory, But Clarity</strong></h4><p>This story doesn&#8217;t end with a win.<br>But it ends with clarity.</p><p>Clarity about what happens when institutions confuse ritual with rigor &#8212; and mistake outreach for openness.</p><p>If you&#8217;ve ever stepped into a process expecting dialogue, only to realize the script was already written &#8212;you&#8217;re not imagining it.<br>You&#8217;re not alone.</p><p>This wasn&#8217;t a job interview.<br>It was a test of institutional readiness.<br>And the result spoke louder than any strategy deck ever could.</p><p>Sometimes, the clearest sign of a system&#8217;s maturity<br>is how it treats your time.</p><p>That&#8217;s the mystery shop worth paying attention to.</p><p></p><div><hr></div><p><em>Disagree? Good. I don&#8217;t write to be right&#8212;I write to be tested. Bring your Tenth Man view, your sharpest counterpoint, or even a quiet doubt&#8212;so long as it builds on data &amp; insights. The most useful critique is often the one that unsettles my own thinking.</em></p><div><hr></div><p><em>Subscribe for more Critical Hungary Insights&#8212;where uncomfortable data meets uncomfortable questions.</em></p><div><hr></div><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.marketingcountry.hu/subscribe?&quot;,&quot;text&quot;:&quot;Subscribe now&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.marketingcountry.hu/subscribe?"><span>Subscribe now</span></a></p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.marketingcountry.hu/p/the-job-interview-that-never-happened?utm_source=substack&utm_medium=email&utm_content=share&action=share&quot;,&quot;text&quot;:&quot;Share&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.marketingcountry.hu/p/the-job-interview-that-never-happened?utm_source=substack&utm_medium=email&utm_content=share&action=share"><span>Share</span></a></p><p class="button-wrapper" data-attrs="{&quot;url&quot;:&quot;https://www.marketingcountry.hu/p/the-job-interview-that-never-happened/comments&quot;,&quot;text&quot;:&quot;Leave a comment&quot;,&quot;action&quot;:null,&quot;class&quot;:null}" data-component-name="ButtonCreateButton"><a class="button primary" href="https://www.marketingcountry.hu/p/the-job-interview-that-never-happened/comments"><span>Leave a comment</span></a></p>]]></content:encoded></item></channel></rss>