The Czech Republic is a country with the highest growth of real estate’s prices in Europe. The paper is focused on the analysis of this long-term growth of real estate’s prices and its influences to the availability of housing. There will be presented Czech historical data describing housing affordability as well. The housing affordability in Czech Republic will be compared using the basic indicators of housing affordability such as P/I ratio and P/R ratio. The aim of the paper is to find out (with the help of mentioned ratios), if the present price level of the Czech real estate market is overvalued or undervalued. To evaluate the results the sum of P/I and P/R ratios will be used. For that purpose in the article there will be presented the results of my long term research which one of the outputs the average wages and awerage prices of one flat family houses are. There will be presented the collected data from the year 1861 to 1943. The data were from daily newspapers taken.