Slovakia

Slovakia’s housing market is currently experiencing strong growth, with property prices rising by 13% year-on-year in early 2025, driven by falling mortgage rates and robust demand, especially in Bratislava. Home ownership is among the highest in Europe, with around 93.1% of people owning their homes and less than 10% renting. Private long-term rentals make up only about 0.1% of the housing stock, mainly in Bratislava, highlighting the limited rental market. Median monthly rents for apartments in Bratislava’s city center range between €11 and €14 per square meter, while less central districts see rents from €9 to €12.50 per square meter. The national median price to purchase an apartment is rising, with recent data pointing to steep increases, but specific up-to-date national averages per square meter are not provided; however, Bratislava and Košice drive much of the market. Publicly owned housing, including social housing, is primarily provided by municipalities and represents a small fraction of the housing stock. Social housing targets low-income and vulnerable groups and is often publicly funded, but the sectors are not fully synonymous—public housing refers to all municipally or state-owned housing, while social housing is a subset focused on those in need. Public and social housing together account for only a few percent of total dwellings, reflecting the dominance of private home ownership in Slovakia.

Slovakia faces a deepening housing crisis marked by soaring prices, severe shortages, and affordability challenges. In early 2025, residential property prices jumped by over 12% year-on-year nationally, with Bratislava seeing increases as high as 27%. The average cost to buy an apartment has surpassed €3,000 per square meter, a record high. Despite surging demand, housing construction has plummeted: completions in the first quarter of 2025 fell to a nine-year low, down 24% annually. Across the country, there is a deficit of more than 200,000 housing units, with Slovakia offering just 419 dwellings per 1,000 inhabitants, well below the EU average of 473. Rental options remain extremely limited, with public rentals at only 1.6% of the housing stock and private long-term rentals mostly confined to Bratislava. Scarce public and social housing means long waits—up to six years in the capital—and strict eligibility standards exclude many low-income households. Rent often consumes nearly half of a low-income earner’s take-home pay, far above the recommended threshold. Those most affected are low-income families, young adults, and marginalized groups, especially Roma communities, who face systemic discrimination, overcrowding, and substandard or segregated housing. Overall, the crisis touches both urban and rural populations, but vulnerability is highest among those least able to pay for rising housing costs and with the least access to private ownership or affordable rentals.

The Slovak government is addressing the issue of affordable and sustainable housing through several initiatives. One key policy is the **Affordable Housing Initiatives**, which aim to gradually increase the supply of affordable housing. Additionally, the government is implementing **energy efficiency requirements** that create market segmentation based on energy ratings, potentially making A and B-rated properties more valuable. The **State Housing Development Fund** plays a crucial role in distributing EU and national subsidies to municipal and private sectors to support housing development. However, there is a noted lack of strategic coordination between government ministries and NGOs in implementing these policies effectively. Slovakia also lacks a comprehensive national strategy for homelessness but is working on a **National Concept for Preventing and Ending Homelessness**. This initiative includes measures like providing affordable housing, social inclusion, and healthcare for homeless individuals. Furthermore, there are reforms underway to improve housing allowance systems to help vulnerable groups. While these efforts are underway, the housing market is challenged by high prices, limited supply, and insufficient rental options, making affordability a significant issue. Recent construction declines exacerbate these challenges, with fewer new homes being built, particularly in urban areas.

Housing cooperatives in Slovakia play a **modest but potentially growing role**, especially as housing affordability worsens and mortgage accessibility declines. Historically, cooperative housing was more common, but its share has diminished significantly over the past decades. According to past census data, dwellings owned by housing cooperatives accounted for around 14.9% of occupied dwellings in 2001, but current sources indicate their share is now marginal and not significant in the national context. Most Slovaks own their homes, and cooperative or rental housing remains a small sector. Recent years have seen a **renewed interest in cooperative housing models**, particularly in Bratislava. Developers like YIT Slovakia have launched pilot cooperative housing projects in response to the lowest housing affordability in 15 years. These models allow members to enter cooperative ownership by paying a portion of the property price and making monthly payments without bearing individual loan risk, which is attractive to those unable to access standard mortgages. Demand has been strongest among older adults and young families. Despite these innovations, cooperative housing does not yet represent a major portion of new developments or the overall housing stock. There is **no explicit national policy or large-scale government program** uniquely dedicated to promoting cooperative housing, but banks and developers, sometimes inspired by successful programs in neighboring countries, are piloting projects. Any significant expansion of this sector would likely require greater government intervention or incentives, which are not yet evident.

Several individuals and organizations in Slovakia are actively voicing the need to tackle the housing crisis, especially around affordable and sustainable housing. Notable voices include STOPA, an innovative NGO that addresses homelessness with housing-first approaches, early intervention, and comprehensive support. Their model, recognized internationally, also incorporates environmental sustainability and aims to expand housing capacity and partnerships for greater impact. Amnesty International has also highlighted the acute shortage of public housing and called for a significant increase in affordable public rental housing and reforms to support marginalized groups. From the public sector, the State Housing Development Fund is a central actor, distributing EU and national funds for affordable and energy-efficient housing projects. The recent Action Plan under the National Concept for Preventing and Ending Homelessness involves national ministries, municipalities, and NGOs in developing actionable policies for 2024–2026. Good collaboration partners include: - NGOs such as STOPA and Habitat for Humanity Slovakia, experienced in sustainable housing projects and community-based solutions. - Academia, notably Slovak Technical University and the Institute for Forecasting of the Slovak Academy of Sciences, which research urban planning, energy efficiency, and social housing policy. - In the real estate and finance sector, 365.bank and developers focused on affordable rental units are engaged in market analysis and could implement pilot projects. - Startups in green building technology and energy efficiency, along with networks of social entrepreneurs focused on inclusive housing models. These groups represent strong potential partners for anyone looking to innovate or expand affordable and sustainable housing initiatives in Slovakia.