High rent, inflation, economic downturns, and global conflicts are contributing to rising housing insecurity, and Croatia is no exception. According to a new report by the global initiative Prindex, as many as 12% of Croats are concerned they may lose their homes. This number has significantly increased compared to four years ago, when it stood at 8%.
Rising Housing Insecurity Worldwide
The study, conducted in 108 countries, revealed that 23% of adults worldwide fear they will lose their property rights. The global report for 2024 highlights a dramatic increase in insecurity, especially in conflict zones like Ukraine, where 33% of adults feel insecure about their housing. Turkey, which has been grappling with high insecurity for some time, tops the list, with 37% of adults fearing they will lose their homes.
Croatia and Neighboring Countries in Focus
In Croatia, the main causes of housing insecurity stem from financial issues and the fear of eviction. Nearly half of those who express concerns about housing insecurity worry that their landlord or property owner may evict them. In addition, high rent prices, inability to cover costs, and problems with family-owned properties further complicate the situation. Compared to neighboring countries, Croatia ranks alongside Montenegro and Hungary, where 12% of the population shares similar concerns. Meanwhile, Serbia has a slightly lower percentage at 11%.
Ukraine and Greece Experience the Worst
Ukraine has seen the largest increase in housing insecurity, not just in Europe but globally, with the percentage rising from 10% in 2020 to 33% in 2024. This sharp rise is attributed to the devastating consequences of the Russian invasion, which led to widespread destruction of housing, contamination of land, and displacement of millions. Greece, too, has seen a significant increase, with insecurity rising from 16% to 35% in just four years. Experts point to a combination of long-standing financial crises, income inequality, and recent government policies promoting harsh mortgage foreclosures as contributing factors.
A Call for Better Housing Policies
The report highlights that the world is moving further away from ensuring equal rights to land and housing for all by 2030, despite this being one of the UN’s Sustainable Development Goals. “These findings are a wake-up call for policymakers around the world. Property security is not just an issue for low-income countries—financial instability, threats of eviction, and conflicts make property rights less secure for millions, including those in the most developed nations,” said Malcolm Childress, the report’s lead author.
The report advocates for focused, country-specific strategies, with key recommendations including financial safety nets and social protection policies for renters and mortgage holders facing financial difficulties. There is also a push for affordable housing programs, including social housing and community land trusts. Moreover, gender disparities need to be addressed, as women are at higher risk of losing their homes and property rights, with 48% of women expressing concern compared to 40% of men.
Croatian Government’s Response
In June, Croatian Minister Branko Bačić presented the country’s housing strategy, acknowledging a shortage of between 232,000 and 286,000 homes. Croatia ranks among the most overcrowded countries in Europe, with young people leaving their homes at an average age of 33. The affordability index varies by city; for instance, in Dubrovnik, an annual salary can only buy 3.2 square meters of property, while in Zagreb, it can buy 6.7 square meters, and in Vukovar, 21.8 square meters.
As part of the strategy, Bačić announced plans to activate state-owned apartments, and a proposed property tax is expected to have a limited impact on the housing market. Local authorities in cities like Zagreb, Split, and Rijeka have also been working with the European Investment Bank on projects to provide affordable housing for vulnerable groups and those with low to medium incomes.
