Slovenia

Slovenia's housing market in 2023-2025 shows a predominantly owner-occupied structure with significant affordability challenges. Home ownership stands at 74.8% as of 2024, while only 6.8% of households are tenants paying market rents, with an additional 18.4% paying reduced non-profit rents or occupying properties rent-free.

Housing prices continued rising substantially, with nationwide increases of 8.46% year-on-year in Q4 2024. The median price for second-hand apartments reached EUR 2,920 per square meter nationally in 2024, with Ljubljana commanding EUR 4,510 per square meter and coastal areas EUR 4,320 per square meter. New apartment prices increased 10.2% annually.

The rental market remains tight with rental inflation at 3.8% year-on-year as of March 2025, outpacing general inflation of 2.0%. Long-term rental yields in Ljubljana average 3.96% for two-bedroom properties.

Public housing plays a limited but important role, with approximately 23,000 units managed by 13 local or national housing funds. The government announced plans to add 20,000 public rental apartments over the next decade. Public housing in Slovenia primarily refers to non-profit rental housing, which overlaps significantly with social housing concepts but focuses on affordable rentals rather than ownership programs.

The market faces supply shortages, with only 23,000 new dwellings constructed between 2015-2021 while household numbers increased by 40,000. Recent regulations limiting short-term rentals aim to return housing stock to permanent residents amid the ongoing housing crisis.

Slovenia’s housing crisis is marked by rapidly rising prices, limited supply, and sharp affordability issues, particularly in urban centers like Ljubljana and coastal regions. Residential property prices have been growing for over a decade, with an 8.46% nationwide increase in 2024 and a current average apartment sale price of €3,414 per square meter. In Ljubljana, prices reach €4,510 per square meter, and coastal areas stand at €4,320. Newly built homes saw price surges of over 10% yearly.

Supply has not kept up with demand: Slovenia has only 410 dwellings per 1,000 residents, below EU and OECD averages. In 2024, only 4,515 dwellings were authorized for construction—down 10% from the previous year. Transaction volumes have dropped as affordability worsens; housing sales declined by over 20% in 2024, especially among first-time buyers and younger households who face tightened mortgage access and higher interest rates, now around 3.75%.

The worst affected groups are urban residents, especially in Ljubljana and tourist hotspots, students, young professionals, low-income families, and renters. Demand for market rentals far outstrips supply, and rental inflation outpaces consumer inflation, making housing inaccessible for many. High construction costs, bureaucratic delays, and labor shortages further compound the crisis, leaving low-income and younger populations struggling the most.

Slovenia’s national government is addressing affordable and sustainable housing primarily by expanding public rental housing and tightening regulations on short-term rentals. The key communicated target is to deliver 20,000 new public rental apartments by 2035, aiming to house about 150,000 residents in affordable public rentals.

Main government activities include allocating 100 million Euros annually to municipal and national housing funds for public rental housing construction, renovation, and purchase, with public rental units prioritizing vulnerable groups, young people, families, essential workers, and the elderly. Amendments to the Housing Act now facilitate more borrowing by housing funds and the creation of a public rental service aimed at acquiring vacant private flats for affordable renting.

Sustainability is advanced through incentives for nearly zero-energy new buildings, totaling 6 million Euros from 2022-2023, and strict energy-efficiency standards for all new housing. The government further aligns with climate goals by targeting a 70% reduction in building emissions by 2030, promoting eco-friendly construction, and supporting energy renovations with financial and regulatory incentives. Restrictions on short-term holiday rentals, introduced in 2025, are designed to increase available long-term rental stock for residents.

Innovative models like community-driven cooperative housing and modular, energy-efficient construction also play a growing role in the government’s broader housing sustainability agenda.

Ukrepi slovenske vlade vključujejo vlaganja v javna najemna stanovanja, omejitve kratkoročnih najemov in finančne ter zakonodajne spodbude za trajnostno gradnjo in energetsko sanacijo stanovanj.

Housing cooperatives in Slovenia play a marginal role in the national housing system and represent only a tiny fraction of total housing units. The sector is considered underdeveloped, with cooperative housing making up less than 1% of Slovenia’s housing stock. Most dwellings are owner-occupied; public efforts focus on expanding affordable rental housing rather than cooperative models.

Recent dynamics show no significant growth or expansion of cooperative housing. New cooperative initiatives are rare, and most affordable or social housing is delivered by municipal and national public housing funds rather than via citizen-led co-ops. Official statistics do not indicate measurable impact or share for cooperative housing on a national scale, confirming its minor dimension compared to traditional public or private housing forms.

Slovenia’s government primarily promotes affordable housing through construction and financing of new public rental apartments, regulatory reforms enabling easier borrowing for housing funds, and financial incentives for sustainable, energy-efficient buildings. There are no separate programs or legal regulations directly targeting cooperative housing apart from broader support for innovative, community-driven pilot projects. Main activities prioritize non-profit rental and eco-friendly construction as part of the national housing strategy, aiming to increase long-term rental supply and improve affordability, with little emphasis on the cooperative model.