Housing issue of young people in the WB6 – How to Solve It?

[katarina]

Hello everyone,

welcome to our discussion on the housing challenges faced by young people in the Western Balkans. This is an increasingly important issue as it directly impacts the independence of youth and their future prospects. A recent study by the National Youth Council of Serbia highlighted that nearly half of young people in Serbia still live with their parents due to financial constraints, with about 22% of them unable to afford independent housing. (See more: https://koms.rs/2024/11/forum-omladinsk ... 4-prijava/) Alarmingly, a third of young people believe they’ll never be able to own property.

This issue isn't limited to Serbia—across the region, youth face similar struggles due to high property prices, low wages, and insufficient support from the government. At the EU level, youth home ownership has also dropped in recent years, with rising housing prices and restrictive loan conditions making it difficult for young people to buy their first home. This has forced many to live with their parents well into adulthood, impacting their ability to start families and create stable futures. (See more: qe-02-24-273-en-n.pdf)

Several countries in the EU have introduced innovative housing policies to address these issues, such as France, Denmark, Sweden, and Slovenia. These countries have found ways to make housing more accessible to young people, offering solutions like shared housing, social housing for students, and affordable loans specifically designed for youth. (See more: Social and youth housing in the EU)

Do you think Western Balkan countries could adapt some of these policies? Or maybe we need new, region-specific solutions? Let’s share ideas on how we can tackle this issue together!

[Dix47]

Wow, those statistics are pretty concerning! I didn't realize how bad it was. I know some people in Serbia who are in their late 20s and still live with their parents because they can’t afford to rent, especially now. But it seems that this is a growing trend in all WB countries, as well as in EU. It just got soo expensive to own, or rent affordable housing.

[eso123]

Yeah, Dix, it's not just Serbia. In fact, the entire Western Balkans face this issue. The situation is very similar in Bosnia as well. And I think the problem isn’t just the cost of rent or property, but also the lack of government support. There needs to be more investment in affordable housing projects for youth, as well as financial support for young couples when they are purchasing their first homes.

[AlvinaS]

I agree with Eso. In my opinion, it’s also about job security. Without stable, well-paying jobs, young people can't even think about moving out. The problem is that many of us are stuck in low-wage jobs, and without any kind of support for housing, the dream of owning a home seems impossible. To get a first job you must have some experience, but at the same time how will you get experience without working in the first place.

[Emina]

That's a great point, Alvina. But what about the rising housing prices in general? I think that’s a major obstacle. Even if someone has a good job, housing prices have been skyrocketing in the region. In larger cities, it’s almost impossible for young people to afford anything decent without going into debt.

[Lea_32]

Exactly. It’s like a catch-22…you can’t afford to rent or buy because housing prices are so high, and you can’t earn more because job opportunities are limited. And the government isn’t doing enough to ease the situation. They need to start offering some kind of incentives for young people, maybe tax relief or subsidies to help with rent.

[Ivan_1234]

I’ve read the link posted by an admin above about the EU countries like France and Denmark that have housing policies specifically for young people, like affordable student housing and shared living spaces. I think Western Balkan countries should look into something like this. But I wonder if it’s even possible for our governments to do this….do we have the resources to create such policies?

[asja123]

It might be difficult, Ivan, but it’s worth trying! The problem is that the economies here are not as strong as in Western Europe, so funding such initiatives would require a lot of collaboration between local and national governments. But if countries like Slovenia can manage to create a fund for affordable housing, maybe we could start with something smaller, like social housing for students or young workers.

[ZokI2345]

A week ago, I participated in KOMS workshop on the topic of youth independent living... One of the panelists was Ana Džokić, a representative from "Ko gradi grad". Her organization is focused on promoting so called "community living" as an alternative for those who are struggling to afford moving out or living alone. It is a cool concept that really saw its success in Barcelona. For those who are maybe open to this idea or just wanna look into it here is a ling to their site: https://www.kogradigrad.org/author/kogradigrad/

[Lena78A]

I come from Bosnia and the situation is similar to the one in Serbia...We really struggle to afford living alone, and especially to purchase an apartment...Even with loans, the situation is hard for many as it has become a rare thing to be employed permanently. High prices are not achievable by young people, but also others who do not have large income..

RSE writes about this issue in Bosnia (You can check it out here: https://www.slobodnaevropa.org/a/bih-st ... 35103.html)

[HarisZuban_u7]

I’ve read the link posted by an admin above about the EU countries like France and Denmark that have housing policies specifically for young people, like affordable student housing and shared living spaces. I think Western Balkan countries should look into something like this. But I wonder if it’s even possible for our governments to do this….do we have the resources to create such policies?

Honestly, I think we all need affordable housing. As for Denmark, Sweden, etc.. their housing, in my opinion, is not at all expensive in comparison with their paychecks and standards. And it is not "shared space", but normal and regular student or other housing. What I am trying to say is that institutions and the government need to find a way to lower and stabilize rent prices, especially in bigger economic hubs such as Sarajevo, Belgrade and Tirana. It is not okay or REALISTIC that rents in those cities are almost the same as rents in Sweden and Denmark.

[Miske_99]

It would be great if someone who studies economy or something could explain to us whyyyy the rent prices are this high and what is the best way to lower them...

[Makso_p1]

Exactly. It’s like a catch-22…you can’t afford to rent or buy because housing prices are so high, and you can’t earn more because job opportunities are limited. And the government isn’t doing enough to ease the situation. They need to start offering some kind of incentives for young people, maybe tax relief or subsidies to help with rent.

Dear Lea, I see here that people are mainly complaining about the housing issue and high prices. I would say that here in the Balkans the situation is not at all bad as it is in Western Europe and USA. Most of us have parents that own their houses or apartments, or maybe own two. We still have a strong family connection and families take care of each other. I would say this is not the case for Western Europe, where most parents EXPECT that their 18-year-olds move out and go find their ways without really helping. This is not always the case, but I heard a lot of stories in which it is..

[Edna_2002]

I agree with Eso. In my opinion, it’s also about job security. Without stable, well-paying jobs, young people can't even think about moving out. The problem is that many of us are stuck in low-wage jobs, and without any kind of support for housing, the dream of owning a home seems impossible. To get a first job you must have some experience, but at the same time how will you get experience without working in the first place.

Honestly, Alvina I would have to say that a lot of my friends are really NOT EVEN TRYING to move out. I do not know whether this is a Balkan thing, but a lot of young people way in pros and cons of living alone and with parents, and its easier for most to stay in their family homes. It is also an individual choice and decision some have to make. I get that a lot of people like to have everything tied up, food made, and house cleaned, all done by their parents, but it is a comfort issue. I think that this issue is more than just economical, its psychological as well. We have to start taking charge of our lives, even though it may be hard for us at first. It is our choice and our life in the end.

[Dino200_Sa]

I am more interested in what is the future of housing. Will it be more difficult or easier, or whether the paychecks will increase. Often, I feel discouraged about the future of housing and generally economic stability, but I am interested in predictions, what do the experts say?

[Petko_m12]

I am more interested in what is the future of housing. Will it be more difficult or easier, or whether the paychecks will increase. Often, I feel discouraged about the future of housing and generally economic stability, but I am interested in predictions, what do the experts say?

Well I am no expert, but CHAT GPT told me this when I asked him about future of housing for youth. It is an interesting point and here is what it said:

"The Future of Housing for Young People: What’s Coming in the Next Decade?

Okay, so I read this article about what housing for young people will look like in the next 10 years, and honestly, it’s a mix of good and bad news. Here's the rundown:

Affordability is going to suck for a while. Housing prices are still climbing, and with wages staying pretty much the same, it’s only going to get harder for young people to buy homes. Add student debt into the mix, and saving up for a down payment seems impossible. But, some places might start offering affordable housing programs or rent-to-own options, so that’s a small win.

Big cities might become even harder to afford. With more people moving into cities, gentrification is pushing out long-time residents, and rents are soaring. On the flip side, if you’re open to it, moving to the suburbs or even rural areas could be a good option. With remote work becoming the norm, a lot of young people are choosing cheaper places to live without giving up their jobs.

Tech is changing everything. Homes are going to be smarter with tech like automated lighting, temperature control, and better security. Plus, we might see more eco-friendly homes that save on energy bills in the long run. But, here's the thing—if you can't afford the latest tech, you might miss out on these benefits.

Renting might become the new normal. With the whole Airbnb thing, it’s harder to find stable rental properties because so many are going to short-term rentals. But on the bright side, renting might also get easier with long-term lease options or even rent-to-own models, so it’s not all bad.

The gig economy could mess with housing too. If you’re doing freelance or remote work, your income might not be super steady, which can make affording rent tricky. But the upside is, you can also get more flexible housing—like tiny homes or mobile living—that fit your lifestyle.

Sustainability is the future. Expect more green housing options that are good for the planet and cheaper to maintain in the long run, though they might be more expensive upfront.

And on the mental health side, it looks like people are pushing for community-focused housing where neighbors help each other out. That could be great for mental health, especially since cities can feel lonely.

So yeah, the future of housing is a mix of challenges and exciting changes. It’s clear that affordability is going to be tough for a lot of us, but there are some cool innovations happening that might make things a bit easier if we can adapt to them."

So hopefully.... It helps and elaborates a bit on this issue, and also it is a cool way to use AI

[Masa_Mujezinovic3]

When it comes to the future of housing, I agree with what's being said by chat on topic of renting. Renting will become a new normal for sure... I am already seeing it as my only option considering the prices of apartments, AND LIKE MEDIOCRE apartments, in larger cities. This is also a common topic in my friend group, where all of us do not see the point in getting credits by banks and paying them out for rest of our lives just so we can say we own our place. I just do not see the point.

[andreatra]

That's a great point, Alvina. But what about the rising housing prices in general? I think that’s a major obstacle. Even if someone has a good job, housing prices have been skyrocketing in the region. In larger cities, it’s almost impossible for young people to afford anything decent without going into debt.

You’re absolutely right—rising housing prices are a major obstacle for young people in the Western Balkans. Even if someone has a good job, the skyrocketing costs of housing in larger cities make it almost impossible to afford anything decent without going into significant debt. This issue has become even more pronounced in cities like Belgrade, Sarajevo, and Podgorica, where demand for housing is high, but wages have not kept up with the rising costs.
As you mentioned, even for young professionals with stable jobs, finding affordable housing is a challenge. Rent prices have surged, and purchasing property has become a distant dream for many. The problem is compounded by limited affordable housing options—especially for those who don’t have family support or the ability to take on massive loans. Many young people are forced to live in shared spaces or with their parents for much longer than they would like. Some even move abroad, where they feel they might have a better shot at securing a comfortable living situation.
The rising prices are partly due to the rapid urbanization and increased demand for housing in urban centers. Cities are growing quickly, but the housing market is struggling to keep up. At the same time, there’s little government intervention to stabilize the market or make housing more accessible to the younger generation. This lack of regulation, combined with inflation and economic instability, only exacerbates the problem.
Without significant changes, including government support for affordable housing and better urban planning, many young people will be left feeling trapped in a system that’s not designed for them. Addressing the rising costs of housing, alongside creating more accessible rental and ownership options, is critical for ensuring that young people can afford to live in their home countries without resorting to debt or moving abroad.

[andreatra]

It would be great if someone who studies economy or something could explain to us whyyyy the rent prices are this high and what is the best way to lower them...

It would be really helpful if someone with an economics background could break down why rent prices are so high and how to lower them. The truth is, there are several factors at play. First, there’s a huge demand for housing, especially in larger cities, but the supply just isn’t keeping up. As more people move to urban areas for better job opportunities, the competition for available properties drives up rent prices. Unfortunately, in many places, there isn’t enough affordable housing being built to meet that demand.
Another factor is real estate speculation. Many property owners see their buildings as an investment, raising rents in hopes of making a bigger profit. This can make it harder for people who just want a place to live, rather than a piece of investment property. Additionally, construction costs and inflation also play a role. As building materials and labor get more expensive, these costs get passed down to renters, making it harder to find affordable homes.
So, what can be done to lower rent prices? One potential solution is government intervention. Policies like rent control or affordable housing programs could help keep rent prices from skyrocketing. Governments could also offer incentives to developers to build more affordable housing, ensuring that there are more options for those on lower incomes. Strengthening tenant rights and providing subsidies or assistance for renters could also help young people afford to live in cities without falling into debt. Ultimately, it’s about balancing the supply and demand for housing and finding ways to make housing more accessible for everyone.

[katicamatica]

When it comes to the future of housing, I agree with what's being said by chat on topic of renting. Renting will become a new normal for sure... I am already seeing it as my only option considering the prices of apartments, AND LIKE MEDIOCRE apartments, in larger cities. This is also a common topic in my friend group, where all of us do not see the point in getting credits by banks and paying them out for rest of our lives just so we can say we own our place. I just do not see the point.

I totally understand where you're coming from. With the skyrocketing prices of even mediocre apartments, it’s hard to justify taking on a massive debt just to own property, especially when renting seems more manageable in the short term. The idea of paying off a mortgage for decades just to say you own your place doesn’t feel worth it for many people, especially when you’re seeing so much of your income going into the bank instead of something more immediate, like enjoying life. Plus, renting offers flexibility—you can move for a job or a change of scenery without being tied down to a property. It seems like renting is becoming the more practical choice for many young people. Do you think this mindset will become more common in the future?