Housing crisis in the Western Balkans: rents soar as wages stagnate

The article, authored by Jovana Matthews for Voxeurop, examines the escalating housing affordability problems across Serbia, Kosovo and Albania. It highlights how rapidly rising rents, stagnant wages and limited social‑housing provision are pushing young urban residents into unaffordable living conditions, with many forced to remain with parents or share cramped flats.

In central Belgrade a one‑bedroom flat now costs €600‑€1,200 per month, while suburban options range from €300‑€650. Serbia’s average monthly salary in December 2024 was €837 and the median €677.60, meaning that even a modest €400 rent would exceed 40 % of a median household’s disposable income, the EU threshold for affordable housing.

Urbanisation has risen to 50.2 % of Kosovo’s population, up from 38 % in 2011. The number of housing units grew 41.3 % (from 412 000 to 583 000) between 2011 and 2024, while vacant dwellings nearly doubled to 182 849. High diaspora investment keeps many properties empty, inflating prices; a one‑bedroom apartment in Prishtina now costs €225‑€300, and a three‑bedroom flat can exceed €600 in the city centre.

In Tirana a central one‑bedroom flat costs €500‑€900, versus €350‑€500 in the suburbs. With average Albanian salaries roughly 30 % lower than Serbia’s and 37 % higher than Kosovo’s, rent still far exceeds the 40 % affordability benchmark. Approximately 70 % of young Albanians, like 25‑year‑old taxi driver Emre Berisha, continue living with parents because salaries would need to double to afford independent housing.

Serbia introduced a first‑property loan with a 1 % down‑payment, now extended to temporary‑contract workers after an amendment in May 2024. Kosovo’s December 2024 Draft Law on Social and Affordable Housing proposes subsidies for young buyers and caps rent at 30 % of family income, though concrete measures remain pending. Albania’s soft‑loan scheme for young couples, launched in 2018, excludes single renters and faces criticism for limited capacity.

Social housing constitutes a tiny fraction of the residential stock: 0.1 % in Albania, 0.5 % in Serbia and a similarly marginal share in Kosovo, where programmes are municipality‑run. In the EU overall, only 8 % of housing is classified as social, underscoring the scarcity of affordable options in the region.

Across the Western Balkans, rent‑to‑income ratios regularly exceed the EU 40 % affordability threshold, especially for one‑bedroom units in capital cities. Combined with rising vacancy rates, limited social‑housing provision and policy measures that target only specific groups, the sustainable‑housing challenge remains acute for young, low‑income residents.