Romania

Romania’s housing market in 2025 is cooling following years of strong growth, with buyer caution rising due to higher VAT, borrowing costs, and weakened consumer sentiment. Despite these pressures, apartment prices continued to climb, with a national median of about 1,710 euros per square meter; major cities are considerably higher, for example, Cluj-Napoca at 3,000 euros per sqm and Bucharest at 1,862 euros per sqm. The average rental price is roughly 7–10 euros per sqm monthly in large urban areas, though exact recent nationwide rental figures are scarce.

Home ownership in Romania is exceptionally high, with around 93% of the population owning their home and only about 7% renting—making Romania the EU’s leader in homeownership and among the lowest for renters. Publicly owned housing plays a minimal role: less than 2% of dwellings (about 1.5%) are in the public or social housing sector, which is one of the lowest shares in Europe. Demand for social housing far exceeds supply; in Bucharest, tens of thousands remain on waiting lists with little annual allocation.

“Public housing” in Romania generally overlaps with “social housing,” but distinctions exist in practice. Social housing is officially defined as rental housing for low-income or otherwise prioritized groups and is often segregated to city peripheries, especially for the most vulnerable or marginalized citizens. This is distinct from broader public housing purposes in some European cities, where housing for a wider range of incomes may be included.

Romania’s housing crisis is marked by a persistent shortage of new homes amid rising demand, primarily in major urban centers such as Bucharest, Cluj-Napoca, Timișoara, and Iași. In the first eight months of 2025, residential building permits dropped by 8% year-on-year and only about 65,000–70,000 units are expected to be delivered nationwide, falling short of the estimated demand of around 80,000 units. Construction costs have increased and labor shortages, especially in key cities, have slowed supply. Average asking prices continue to climb, now reaching approximately 2,630 euros per square meter in Bucharest and 3,260 euros per square meter in Cluj. Year-on-year price rises of 3–6% persist, outpacing income growth.

Housing affordability has become critical: in Bucharest, purchasing a single square meter in the city center requires about 2.7 average monthly salaries, while Cluj demands up to three. The affordability gap is exacerbated by daily living expenses, with Romanians spending a larger share of their income on essentials compared to those in Western Europe. The crisis impacts urban residents with average incomes hardest, young people, and increasingly the elderly, as Romania’s aging population accelerates demand for senior-friendly housing. Vulnerable groups, including low-income households and those seeking social housing, face extreme marginalization due to limited supply and lengthy waiting lists.

Romania’s national government addresses affordable and sustainable housing through several targeted strategies and programs. The National Housing Agency (Agenția Națională pentru Locuințe, ANL) runs youth and social rental housing programs, focusing on young people under 35 and vulnerable groups. The “Noua Casă” (New Home) program provides state guarantees and reduced-interest mortgages for first-time buyers, expanding access for middle-income households.

To encourage sustainability, recent regulations offer developers tax breaks and subsidies for energy-efficient construction and eco-friendly materials. The National Plan for Energy Efficiency aims to cut building energy consumption by 50% by 2030, aligning with EU directives on energy performance. National policies like the “Renovation Wave” target large-scale energy-efficient renovations and upgrades through public funding.

Recent communicated targets include building more social housing for people at risk of exclusion and marginalized groups, as set out in the National Housing Strategy for 2022–2050. For sustainability, millions of square meters of buildings are slated for renovation for efficiency by the end of the decade. Concrete programs in partnership with the EU and multilateral development banks, such as the HERO pilot project, focus on improving the housing conditions for marginalized Roma communities, combining financial, construction skills training, and micro-loan support.

These strategies signal the government’s intent to expand both affordable and sustainable housing supply, but challenges persist due to limited funding, regulatory gaps, and slow public sector delivery.

Romania's cooperative housing sector is relatively underdeveloped compared to other European countries. The country has a high homeownership rate, with cooperative housing not being a significant part of the housing landscape. Public or social housing, which includes cooperative elements, accounts for only about 1.5% of all housing units, making it one of the lowest shares in Europe.

The Romanian government focuses on improving housing affordability through programs like the "Noua Casă" for first-time buyers and social rental schemes. However, specific policies promoting cooperative housing are not prominent. The government does incentivize sustainable construction with tax breaks and subsidies for eco-friendly projects, but these are not specifically targeted at cooperative housing.

Current dynamics in the housing market are influenced by strong demand for conventional ownership, driven by urbanization and economic growth. While there is a growing need for affordable and sustainable housing solutions, cooperative housing remains a small component of Romania's housing policies.