Ljubljana

Ljubljana faces a severe housing crisis marked by high prices, limited supply, and growing affordability challenges. The city has fewer than 410 dwellings per 1,000 residents, which is below EU and OECD averages. Home and rental prices have doubled since 2021, with median rents for apartments now at levels inaccessible to many working households. Even with a budget of 400 euros, only a small selection of rental options is available; studio apartments commonly exceed 700 euros monthly. Short-term rentals like Airbnb have surged, with nearly 1,800 active listings and high occupancy rates, further constraining long-term rental options.

The crisis affects a broad segment of the population: young professionals, students, low-income earners, and even average middle-class families. Demand is fueled by population growth, urbanization, and an influx of foreign students and workers, including 3,640 foreign students at the University of Ljubljana in 2023. The competition extends to both locals and international renters, while investors and landlords benefit from high demand and rising returns. Vulnerable groups are at particular risk, as social and public housing offerings reach only a fraction of eligible applicants. As a result, Ljubljana’s housing shortages drive both exclusion and financial stress across increasingly wide sections of society.

Ljubljana’s city administration addresses affordable and sustainable housing primarily by expanding public and non-profit rental housing, reforming regulations, and supporting innovative developments, though supply remains far below demand. The city, in line with Slovenia’s national strategy, aims to increase the public rental stock substantially, with national targets envisioning at least 2,700 additional dwellings and specific investment in the construction of 480 new public rental units, many located in or around Ljubljana.

Key activities include the rehabilitation and reuse of vacant properties, direct construction of new public and non-profit units, and acquisition or renovation of existing buildings. Notable is the Gerbičeva Youth Community building: a modern, energy-efficient public rental complex for young adults combining affordable accommodation and social support, with similar projects in the pipeline. There is also a focus on using public-private partnerships and modular construction to accelerate delivery of affordable homes, particularly in suburbs.

Recent policy changes address the impact of short-term rentals (e.g., Airbnb), aiming to limit their expansion and prioritize long-term housing needs. Amendments to the Housing Act now make it easier for housing funds to borrow and to convert empty private units into public rental housing, thus supporting affordability and sustainability.

Targets for the coming years include closing persistent supply gaps, bringing more unoccupied housing into use, and prioritizing vulnerable groups, all while integrating climate resiliency and energy efficiency standards into new and renovated public stock.

Ljubljana’s housing market remains highly pressured, with strong demand driving both rental and sales prices to new highs. Home ownership is dominant in Slovenia, with estimates indicating that around 90% of people own their home and only about 10% rent, but in Ljubljana the share of renters is higher, typically near 20-25% due to urbanization and student population.

In early 2025, the median advertised rent for a studio apartment in Ljubljana is approximately 700 euros per month, with newly built units and central locations commanding higher prices. The median long-term rent for apartments hovers around 20 to 22 euros per square meter per month. To buy, the median price for a new apartment in Ljubljana stands near 4,500 euros per square meter, while secondary market prices remain above 4,000 euros per square meter.

Publicly owned housing plays a modest but important role, consisting mostly of non-profit or social rental apartments managed by municipal and national housing funds. These account for a small share—estimated near 10 to 12%—of all rental dwellings in the city, far below demand. Social housing typically refers to means-tested, subsidized rental housing allocated to vulnerable groups; public housing in Ljubljana overlaps with social housing but may also include some cost-based rents for broader categories.

Acute shortages and slow construction sustain high prices, while public and social housing serve only a fraction of eligible households. Public and social housing in Ljubljana are related but not entirely synonymous: all social housing is public, but not all publicly owned dwellings are reserved for the most vulnerable.