Croatia’s government has outlined a large-scale housing programme aimed at expanding access to affordable homes, with plans to build and renovate a total of 20,200 apartments and family houses by 2030 under a new Affordable Housing Act. The initiative is framed as a response to a major housing shortfall, with estimates cited in the coverage indicating the country lacks more than 200,000 housing units, alongside a housing market shaped by a high number of unused dwellings and units diverted away from permanent living.
According to the plan presented by the government, roughly 8,000 units would come from new construction through the state real-estate agency (APN), while around 9,000 existing apartments would be brought into the affordable housing system by activating vacant properties for affordable rental. An additional segment of the programme targets assisted or less-developed areas, where further units would be mobilised or newly built as part of the wider package. The government has said implementation would be tied to local housing programmes and coordinated with public institutions involved in delivery.
A central feature of the reform is how “affordable housing” is defined. The concept is set so that the rent or mortgage instalment, combined with typical utilities and maintenance costs, should not exceed 30% of the net income of the immediate household for a home of the relevant reference size and value. The same legislative package introduces new housing models, including micro housing units designed for young adults: the framework allows units of 18 square metres for one person or 26 square metres for two people, intended as transitional housing for up to four years, with a possible extension of up to two additional years in specific cases such as students.
The programme is also designed to include both affordable ownership and rental options. In publicly developed buildings with more than ten apartments, the model described alongside the reform a split between affordable sale and affordable rental, with the aim of expanding secure rental supply while still enabling ownership for eligible households. Alongside these measures, the government has highlighted safeguards meant to keep subsidised housing within the system, including restrictions on resale for an extended period and pre-emption rights for local authorities and APN in certain cases.
The government has linked the plan to major public investment, stating that the housing programme would require about €2 billion by 2030, with broader projections for additional funding in subsequent years as the national housing policy extends beyond the decade. The legislation is being presented as an umbrella framework meant to increase supply, use underutilised housing stock, and set clear affordability standards as Croatia attempts to ease pressure from rising housing costs.
