Bosnia and Herzegovina

Bosnia and Herzegovina’s housing market is characterized by very high home ownership and a small, mostly unregulated rental market. Recent data show that only about 4.4% of households rent their home, while the vast majority—over 95%—are owner-occupiers, a rate among the highest in Europe.

In 2025, the median price to buy a newly built apartment nationwide is around 1,643 euros per square meter, with prices higher in major cities like Sarajevo (approx. 1,980 euros/sqm) and Banja Luka (approx. 1,991 euros/sqm). Average monthly rent for a 1-bedroom apartment in Sarajevo typically ranges from 153 to 204 euros; converted to a median rent price per square meter, typical rates vary between 7 and 11 euros/sqm per month depending on location and apartment size. Rental inflation has accelerated recently due to strong urban demand and limited supply.

Publicly owned housing comprises a very small share of the total stock and plays only a limited role in meeting demand. Social housing projects—mainly locally managed and aimed at vulnerable groups—exist but do not cover the scale of need, so most low-income or disadvantaged families rely on informal arrangements or family support. In Bosnia and Herzegovina, public housing refers to municipally or state-owned units; social housing is targeted for low-income and especially vulnerable residents but is not widely available. Social housing is a subset of public housing, specifically reserved for those with the greatest needs; public housing more broadly can also serve other groups or regular tenants. Both sectors remain underdeveloped compared to Western Europe.

Bosnia and Herzegovina faces a serious housing crisis driven by high demand, rising prices, urban migration, and persistent supply shortages, all amid the legacy of war-damaged housing stock. Since 2019, average new housing prices have increased by more than 50%, with a 16.6% jump in 2024 alone. Purchasing power is low; the average monthly salary covers only around 0.5–0.6 sqm of an apartment. Urban centers like Sarajevo, Banja Luka, and Mostar have experienced especially steep price increases, largely due to rural-to-urban migration and investor interest. Although construction has increased—with about 3,420 new dwellings completed in 2024—labor shortages, high material costs, and administrative bottlenecks hinder further expansion. In early 2025, new housing permits dropped sharply, and affordability worsened.

Approximately 42% of the pre-war housing stock was damaged or destroyed during the 1992–1995 conflict. While most damaged units were rehabilitated, around 150,000 remain unrestored, placing continued pressure on the housing sector. Vulnerable groups most affected by the crisis include low-income families, young adults, students, persons displaced by war, and urban migrants. Socially disadvantaged residents face acute difficulties due to limited access to formal accommodation and affordable rental options. Overall, the crisis deepens inequalities in access to secure, adequate housing, with the most severe impacts felt in urban centers and among groups lacking stable income or property.

Bosnia and Herzegovina’s national government addresses affordable and sustainable housing mainly through targeted social and energy-efficiency interventions, but it lacks comprehensive, large-scale sectoral policies or ambitious national targets. Recent focus is on supporting vulnerable groups—internally displaced persons, returnees, and low-income households—via programs co-financed by the EU and international partners. One key effort is the Social Housing Project, providing about 2,600 non-profit and assisted living units, managed by the Ministry of Human Rights and Refugees, with technical assistance for beneficiary inclusion and social integration. In 2023, the Regional Housing Programme delivered new or renovated housing for over 2,700 vulnerable families.

On sustainability, there are partnership-driven initiatives like REELIH, which combines homeowner co-financing, loans, and capacity building to achieve residential energy-efficiency upgrades for low-income households, and microfinance-focused programs supporting up to 80,000 families to access funds for energy transition and climate adaptation. The recent €20 million EU/UNDP Flood Recovery Project improves disaster resilience through new and restored housing and infrastructure.

Bosnia and Herzegovina’s efforts emphasize the restoration and targeted provision of affordable rentals, energy-efficient refurbishments, and social inclusion—mostly for those in acute need. National policy, however, relies heavily on donor initiatives and has not set ambitious, broad-based numerical housing targets or introduced mass affordability schemes for the general population.

Housing cooperatives in Bosnia and Herzegovina play a minimal role in the national housing market, with no evidence that they account for a significant share of total housing units. The country’s housing stock is overwhelmingly private and owner-occupied, and there is no indication from official statistics or public reports that cooperative housing has a notable presence or is actively promoted as a distinct sector. The lack of available data—such as the share of cooperative housing units—suggests it is not a meaningful segment compared to owner-occupied and private rental housing.

Current dynamics in the wider housing sector focus mainly on social housing for vulnerable groups, often supported by international donors, and on improving energy efficiency through projects like REELIH. There are no visible state programs or policy regulations specifically encouraging the development of housing cooperatives. National housing policy remains fragmented, with interventions targeted mostly at groups in acute need rather than the general population, and there is no evidence of systematic government support or incentives for cooperative housing models.

In summary, cooperative housing is not a recognized or developed segment of Bosnia and Herzegovina’s housing market. The focus remains on private ownership, limited social housing for vulnerable populations, and energy-efficiency upgrades, rather than on cooperative or collective ownership models.