The Middle Class Can No Longer Afford Housing, Let Alone the Poor

Poundbury, a town on the outskirts of Dorchester in Dorset, England, is a place where its residents either really hate it or love it. There is no middle ground. How could there be – it is a place that at first glance looks like a backdrop for an animated film, rather than a development and investment project and a kind of experiment by the first heir to the English crown, Prince Charles. Namely, the prince did not like the concrete shell into which the town had turned after World War II, and as the owner of part of the land in the town, he entered into an investment project in the early 90s that envisioned the construction of a new settlement based on the appearance of traditional British architecture with a strictly defined urban philosophy, which will not be completed until 2025. In short, the prince financed the construction of new model houses and apartment buildings that look as if they were built several hundred years ago and whose appearance must not be intervened with in any way. Houses and apartments in model buildings are sold or rented, and new buyers and/or tenants must sign an agreement that they will not intervene in the house and the space around it in ways that are not strictly defined and prescribed.

Croatia Has No Prince

All properties in the town look expensive, but Prince Charles has ensured that they are accessible to everyone, even those most vulnerable. Thus, as much as 35 percent of all newly built properties are intended for rent for those with existential problems, as part of a social housing model. The prince reportedly believes that people who struggle in life should be supported and integrated into society, not marginalized. And he is right, at least in this regard. Croatia has neither a prince nor a town that plays the fairy tale place according to the prince’s vision, nor does it have social housing models. And we should have them if we do not want to continue reading headlines about how our fellow citizens do not leave their parental homes in their 30s or 40s, when they realistically cannot afford their first property, or how they leave the country because they cannot resolve their housing issues. Often not even for rent, let alone for purchase.

None of this surprises Gojko Bežovan, a full professor at the Faculty of Law at the University of Zagreb and one of Croatia’s leading experts on social policy, who says that no government since Croatia’s independence has shown even a hint of goodwill to find a solution to the housing issue for those who cannot afford square meters at market prices and that no government has ever supported such social policy.

– Our governments have all preferred to support speculators in the real estate market – Bežovan is strict, who is also very surprised that the public has never actively pressured the authorities to introduce a social housing policy. As soon as the possibility of reducing the social housing fund or leaving that sector solely to market rules is mentioned in other countries, the public rises up on its hind legs to retain existing rights or ensure more square meters for the most vulnerable, Bežovan reminds, while here there is not even constructive criticism.

Croatia Does Not Care

– It is very interesting and indicative that last week in Finland, in Helsinki, the European Social Housing Festival was held, where, among other things, the concept of social and non-profit housing in neighboring Slovenia and numerous other EU countries was presented. Croatia, quite predictably, was not there. Slovenians, for example, use funds from the Council of Europe Development Bank to develop their social housing model, while we have never had such initiatives nor has that bank ever invested in social housing in our country – said Bežovan.

It is not that there have not been initiatives for social housing policy in our country, but all market participants, from Bežovan to various real estate agents to expert market analysts (albeit anonymously, so as not to offend anyone) emphasize that these initiatives have, in fact, only spurred the market to even greater growth. From POS to APN. Which has, in short, led to rising real estate prices and the fact that apartments or houses have become a luxury that not everyone can afford.

What do experts say about all this and are there initiatives to start social housing in our country, read in the new issue of the Lider weekly in print and digital edition.