Slovenia

Slovenia’s housing crisis is driven by a persistent shortage of affordable housing, rapidly rising property prices, and insufficient new construction. The number of dwellings per 1,000 inhabitants—around 410—remains below EU and OECD averages, and new residential investment lags behind European standards. House prices have risen sharply over the last decade, with a 6.3% annual increase in 2023. In urban centers like Ljubljana and Maribor, this growth is even more pronounced. The number of residential transactions is declining, reflecting reduced affordability: in 2024, sales dropped by over 21% year-on-year. The supply of new housing is constrained by costly construction, regulatory bottlenecks, and slow permitting processes. Only about 5% of nationwide housing transactions in 2024 involved newly built units. A substantial portion of the housing stock is aging—most buildings are from before 1980—and many require renovation. Those most affected include young people, first-time buyers, low- and middle-income households, and families seeking to enter the housing market. Students in Ljubljana and the coast also face high rents due to strong demand and limited student accommodation. The growing trend toward short-term tourist rentals further restricts the already limited supply of long-term rental housing, driving up prices. Energy poverty is also a concern, particularly among those living in older, less efficient homes. The crisis affects both urban and rural populations, but is especially acute in major cities where demand far outstrips supply.

The Slovenian national government is prioritizing affordable and sustainable housing through a series of ambitious reforms and investment programs. The latest legislative package secures €100 million annually from 2025 to 2035 to expand the public rental housing stock, with a target to construct 20,000 new public rental units over the next ten years. At least €75 million each year will fund the Housing Fund for new builds, acquisitions, and the co-financing of municipal projects, while up to €25 million will subsidize low-interest loans for housing providers. Non-profit rents in public housing will be gradually adjusted to enable necessary investment in new construction and renovation. A major feature is the creation of a public rental service, aiming to acquire and renovate empty private apartments for affordable rental use, with plans for at least 5,000 new dwellings and the activation of 2,000 vacant homes. The government is also placing regulatory limits on short-term tourist rentals to channel more properties into the long-term rental market. Slovenia’s updated National Housing Programme emphasizes renovation of existing stock, increasing energy efficiency, use of sustainable construction methods, and financial support for green building. These reforms and investments are expected to establish stable, long-term frameworks for increasing access to both affordable and sustainable housing, especially for socially disadvantaged groups, young people, and families.

Housing cooperatives in Slovenia represent a marginal segment of the overall housing market. The sector’s development is currently hampered by legal and structural barriers: while Slovenia has general cooperative and housing laws, there is no dedicated legal framework specifically enabling or supporting housing cooperatives. Existing legislation does not provide preferential access to land or financing, forcing cooperatives to compete with profit-driven investors, especially in high-demand urban areas like Ljubljana. As a result, cooperative housing accounts for only a negligible share of the country’s housing units, and official statistics do not record a significant presence of such cooperatives nationwide. Recent years have seen growing advocacy, particularly from NGOs, for a new Law on Cooperative Housing, which would provide a more conducive environment by defining public support mechanisms, cost-based rental models, and safeguards against speculation. However, systemic and regulatory encouragement from the state remains limited. The government’s main housing policy initiatives focus on expanding public and non-profit rental housing through substantial investment and reforms, but these measures target municipal funds and state housing funds rather than the cooperative sector. Therefore, while the idea of cooperative housing garners support among certain civil society groups, its concrete role and dimension in Slovenia remain very limited and largely undeveloped under current policies and programs.

Slovenia’s housing market remains characterized by **high home ownership**, with approximately **74.8% of households owning their home** in 2024. Only **6.8% rent at market rates**, while another 18.4% live in dwellings with reduced or non-profit rents or rent-free arrangements. The private rental market is small by European standards, but demand for rental housing, especially in urban centers, is growing due to high purchase prices, younger generations’ preference for flexibility, and constrained housing supply. The **median price to buy an apartment** in Slovenia is around **3,330 EUR per sqm** nationally, with higher prices in Ljubljana and coastal regions. For **renting**, the national median is approximately **13–15 EUR per sqm per month**, with Ljubljana seeing higher averages. **Publicly owned housing** plays a marginal but important role. The sector focuses on public and non-profit rental housing for socially disadvantaged groups, with public housing funds administering roughly 5% of the housing stock. Social housing is primarily allocated through municipal housing funds based on income and need; publicly owned housing includes both social (means-tested) and non-profit (below-market) rentals, but the two are not identical — social housing is strictly for the most vulnerable, while non-profit rentals may serve a broader segment. Efforts continue to expand the public rental sector, with national reforms seeking to increase available units and renovate empty homes, aiming to ease affordability pressures in the coming years.