Croatia

Croatia’s housing market in 2025 continues to see rising prices and strong demand. About 90% of Croatians own their homes, making homeownership among the highest in the EU, while only around 10% rent, and the formal rental sector is small, with many contracts unregistered. The national median purchase price is €2,834 per sqm, ranging from €2,059 in inland regions to €3,500–4,000 per sqm in prime coastal and tourist areas. Median long-term rental prices average around €13–15 per sqm monthly in cities like Zagreb and Split, but availability for long-term rental is squeezed by the growing short-term rental market serving tourism, especially along the coast.

Publicly owned housing represents a very small share of the Croatian housing market and plays a minimal role in providing affordable homes. Only about 1–2% of the national housing stock falls into the public or social housing category, with even lower shares in major cities. In Croatia, public housing is not always synonymous with social housing: public housing refers to units owned by local authorities, while social housing specifically targets households with low income and special needs. The gap between available social/public housing and demand is large, and most households rely on the private market. The acute shortage of affordable rentals, combined with ongoing high rates of ownership, continues to challenge lower-income households and young families seeking independent living.

Croatia’s housing crisis is defined by rapid property price growth and diminishing affordability for large segments of the population. National prices increased by about 10% annually in 2024 and 2025, nearly doubling since 2016, with the current median purchase price at €2,834 per sqm nationwide and €3,500–4,000 per sqm in top coastal and tourist areas. Rental affordability is also strained, with long-term rents averaging €13–15 per sqm monthly in urban areas, and the supply of rentals squeezed further by the short-term tourist market.

This crisis disproportionately affects young adults—about 70% under age 31 cannot afford to rent or buy, resulting in one of Europe’s highest rates of young people living with parents well into their thirties. Low-income households, elderly people with inadequate pensions, and Croatia’s homeless (over 2,000 officially, with more than 10,000 living in unsafe accommodation) also suffer acutely. Those seeking affordable rentals or social housing find severe shortages—state and municipal housing account for just 1–2% of the total stock, far below demand levels. Market trends show high investor activity and a large number of vacant homes, yet these have not translated into improved access or affordability for Croatians dealing with stagnating wages, job insecurity, and rising costs. The crisis has led residents to relocate to suburban areas with more affordable but lower-quality housing, intensifying suburbanization and informal construction.

Croatia’s national government is tackling affordable and sustainable housing through its National Housing Policy Plan until 2030, adopted in March 2025. The plan sets a target to develop around 9,000 new housing units for sale and affordable rent by 2030, with at least half reserved for non-profit rentals. The state is investing approximately €2.03 billion in the sector through several key initiatives.

A central reform is the upcoming Affordable Housing Act, poised to underpin the government’s strategy and expected to be operational by the end of 2025. Its measures include capped sale prices for new units (€2,104/sqm), a construction cost benchmark (€1,315/sqm), and subsidies for first-time buyers under age 45, such as 50% VAT refunds and transfer tax reimbursements.

To widen the supply, the government is activating vacant properties, with owners incentivized to rent out homes long-term through lump-sum payments and state mediation. Municipal authorities are also developing local housing programs, with construction and renovation prioritized in underserved areas and for youth and vulnerable groups.

Additionally, the state is launching an affordable rental program, transitioning vacant state and private units into long-term rentals managed by the national real estate agency (APN), and covering the difference between affordable and market rents for eligible tenants. Legislative changes aim to restrict short-term tourist rentals and reinforce tenant protections, complementing investments in energy efficiency upgrades for existing buildings.

Housing cooperatives in Croatia play a very minor role in the national housing landscape and currently represent an extremely small share of total housing units. Reliable figures on the exact proportion of cooperative housing are lacking, but the model remains marginal compared to other tenures, partly due to the historical predominance of homeownership and limited development of both the formal rental and cooperative sectors.

Recent housing policy reforms, especially under the National Housing Policy Plan to 2030, are starting to recognize the potential of cooperative housing models as part of efforts to tackle affordability, housing shortages, and youth access to independent living. The government aims to stimulate the formation of non-profit housing cooperatives as a way for citizens to collectively address housing needs and increase rental supply, especially in deficient areas. However, these initiatives are in the early stages and lack a significant number of realized projects so far.

There are no dedicated large-scale state programs for cooperative housing, but forthcoming legislation and local partnerships encourage the sector’s development. Measures include incentives for collective housing solutions and collaborative renovation or conversion of unused buildings. Despite policy interest, housing cooperatives currently remain a nascent and underdeveloped sector in Croatia, with future growth depending on how planned regulatory and funding frameworks are implemented.