Study reveals 70% of young people in Croatia don’t have income to rent or buy property

ZAGREB, 28 February 2025 (Hina) – A study commissioned by SDP MEP Marko Vešligaj on the impact of the housing crisis on Croatian citizens has revealed that 70% of young people under the age of 31 do not have sufficient income to rent or buy a property, Vešligaj’s office announced on Friday.

Alarming Findings on Housing Conditions

The study highlights significant disparities in housing conditions between younger and older respondents. While those over 31 typically own or have inherited their homes, younger individuals mostly live with their parents or relatives, either rent-free, by paying rent, or in rented accommodation.

Affording independent housing remains a major challenge, particularly for younger individuals. Only 39% of respondents can fully afford to rent a home, with this percentage significantly lower among those aged 18 to 30.

Meanwhile, one-third of respondents can partially afford independent housing with additional income sources, while 28% are completely unable to finance living on their own.

Affordable housing is generally defined as spending no more than 30% of household income on accommodation costs, according to Vešligaj’s office.

Key Barriers to Independent Living

The main obstacles to financing independent housing include insufficient income, high rental and utility costs, an unstable job market, and rising living expenses due to inflation. Older respondents are more likely to cite a lack of income, while younger people often mention the financial benefits of living with parents.

Additionally, young people struggle to find rental properties within their budget and face limited access to housing loans.

Public Perception and Policy Demands

A majority (73%) of respondents believe the availability of affordable housing for young people is poor, with no significant differences between age groups. Most respondents also agree that the government should:

• Increase financial subsidies for first-time homebuyers

• Regulate the rental market to make housing more accessible

• Expand existing housing assistance programmes, which are currently seen as inadequate

Younger respondents are more optimistic about buying property within the next 10 years. 20% believe this is very realistic, while nearly half think it is possible only with financial support from parents, partners, or loans.

Proposed Solutions to Improve Housing Access

To improve the housing situation for young people, respondents prioritised:

• Better loan conditions (68%)

• Increased state subsidies for first-time buyers (64%)

• Lower taxes and fees for young homebuyers (61%)

• The construction of affordable state-owned rental housing (59%)

• Stronger rental market regulation, including price controls (56%)

• Encouraging permanent employment to improve loan eligibility (48%)

The study was conducted in February 2025 by the Hendal agency, surveying 1,001 respondents across Croatia.

Vešligaj: Urgent Action Needed at Both National and EU Levels

Commenting on the results, Marko Vešligaj emphasised the need for urgent action:

“The study confirms our concerns, and it is clear that much work remains to be done to improve the situation. At the European level, as Socialists and Democrats, we are advocating for restrictions on the privatisation of public and social housing, fair rental regulations, full transparency in real estate investments, and measures to curb short-term speculation and the impact of Airbnb on the housing market.

I also personally believe that rural development could be part of the solution, alongside social housing projects in major cities. Rural areas offer more affordable housing and a higher quality of life. If we invest in infrastructure, transport links, and the renovation of existing properties, these areas could provide suitable living conditions for many families across Europe.”

EU Committee on the Housing Crisis

Vešligaj is a substitute member of the newly established Special Committee on the Housing Crisis (HOUS) in the European Parliament. The committee will assess current housing needs, analyse existing housing policies and EU funding for sustainable and affordable housing, and propose recommendations for the European Affordable Housing Plan and European Housing Strategy, which will be presented to the European Commission.

Other Croatian MEPs in the committee include Gordan Bosanac (Možemo/Greens) and Nikolina Brnjac (HDZ/European People’s Party), who serve as substitute members and political group coordinators.