Croatia and Serbia grapple with soaring housing costs

In Croatia, YouTuber Annie Rose built a 28‑square‑meter tiny house on her parents’ land for about $45,000 after rejecting rent, illustrating a growing shift among young people toward low‑cost, self‑built homes as housing prices climb. The trend coincides with a broader market picture in which the first‑quarter price index rose over 14 % year‑on‑year, yet an affordability index shows buying power is roughly 30 % higher than in 2002. Supply remains tight, with new residential construction down about 30 % compared with the 2008 peak, and older apartments driving the fastest price increases.

In Serbia, the SRCE party’s finance and economy committee warned that housing has become one of the nation’s toughest social issues, especially in Belgrade where prices average €5,300 per square metre—equivalent to five average net monthly salaries. SRCE proposes a suite of reforms: non‑profit construction on publicly owned land with tax and utility subsidies, long‑term euro‑bond financing for housing, stricter anti‑money‑laundering controls in real‑estate, and rent schemes with capped growth to improve security for tenants.

Both countries face rising property costs, limited new construction, and a growing reliance on alternative housing solutions or policy interventions to address a widening affordability gap.