Croatia is often highlighted as a country with over 90 percent of apartments owned. However, this figure no longer seems so indisputable, especially when comparing data from the last two censuses. According to the data from the Croatian Bureau of Statistics (DZS), the ownership rate decreased from 88.8 to 86.3 percent between 2011 and 2021.
In absolute numbers, the number of households living in their own property fell from 1.35 to 1.24 million, while the number of tenants increased by 31 thousand, totaling 190 thousand. The number of owners decreased more than the increase in tenants because the total number of households decreased by 83 thousand, primarily due to emigration and declining birth rates.
Decline in the Number of Owners and Increase in Tenants
Some tenants live in properties owned by family members – as many as 112 thousand households, while more than 77 thousand pay rent. Interestingly, in the last ten years, the number of people living in an apartment or house owned by a family member has increased by 42 thousand. It can be assumed that an increasing number of young people, even after starting their own families, decide to stay in their parental home or with other family members due to high real estate prices, insecure incomes, and difficult access to credit.
It is also possible that some unregistered tenants provided inaccurate information during the census, claiming to live with friends or relatives. Although the census is anonymous, this possibility is very real, suggesting that the number of tenants in official statistics is likely underestimated. This is confirmed by discrepancies between census data and data on signed rental agreements. For example, according to the DZS, only 378 households in Samobor were recorded as renting, while the Real Estate Market Overview recorded 699 such agreements just in 2023.
Zagreb Leads in the Growth of Tenancy
In Zagreb, the number of tenants living in properties owned by family members has doubled over the past ten years, from 16 to 31 thousand. At the same time, the number of tenants paying market rent increased by eight thousand, bringing the total to around 23 thousand according to the 2021 census. When these two categories are combined with those on protected rent, it turns out that a total of 60 thousand households in Zagreb do not live in their own apartment or house.
This is approximately one in five households, out of a total of about 300 thousand. In comparison, ten years ago this share was 14 percent. Similar shares are recorded in other larger cities. In Rijeka, the share of tenant households is also around 20 percent, in Pula 19 percent, in Split 18 percent, and in Dubrovnik 17 percent.
How Many Tenants are There in Croatia?
The data from the Croatian Bureau of Statistics is currently the only reliable source for analyzing tenancy, as other institutions unfortunately do not have detailed information. The Tax Administration, for example, keeps records of taxpayers and surcharges on income from renting, but does not separate lease from rent. Last year, 227 thousand taxpayers were recorded, but one landlord can have multiple apartments or commercial spaces. Additionally, a significant number of landlords continue to rent illegally, beyond the reach of official records.
– Given that tax evasion is still common in Croatia, it is difficult to accurately determine the number of tenants. It is estimated that the number of tenants is between 150 and 200 thousand. Before the tax relief for rent was abolished in 2011, about 50 thousand people used it, and at that time it was estimated that the actual number of tenants was three to four times higher – emphasizes Nedjeljko Marković, president of the Pragma association.
Unreliable Data
Such estimates are also agreed upon by Gojko Bežovan, a professor at the Faculty of Law in Zagreb who has been researching housing and housing policy for years. He believes that with the introduction of property tax, the number of registered tenants will certainly increase, allowing us to finally have more relevant official data. However, he warns that the statistics will certainly not include tenants living with relatives who often do not pay rent in cash, but rather through other means or services.
Just as we do not have reliable figures on tenants, we also lack sufficient research on their socio-demographic profile. Since ownership of an apartment is traditionally preferred in Croatia, while renting is generally the last option, tenants are mostly recruited from lower income brackets.
– The main groups of tenants are students, young people who have just become independent, families with low incomes who cannot access credit, evicted individuals, older singles with small pensions, and foreign nationals. There is also a special category of so-called insecure housing, which lies somewhere between renting and homelessness. These are people with whom landlords often do not want to sign contracts for tax and other reasons, or it is not possible due to unresolved property-legal relations. Some citizens with poorer property status still rent only part of an apartment or a room, which is also not uncommon. Their number is not negligible, as according to official data, 50 thousand people in Croatia receive guaranteed minimum compensation – explains Nedjeljko Marković.
Priority in Croatia is Own Property
Most of these categories rent apartments directly from owners, so real estate agencies only have detailed insight into the more expensive segment of the market.
– We generally do not mediate in the rental of lower-priced apartments, so I cannot speak about that part of the market. Tenants are most often students whose parents can afford higher costs, then families renting a larger apartment while simultaneously renting out their smaller one, followed by families temporarily living in rental while searching for a property to buy, and individuals or families temporarily relocating due to work. There are very few cases where people in Croatia live their entire lives in rented property, at least not in this higher price range. As is well known, the priority here is to own property – says Borislav Vujović, owner of the Opereta agency.
Croatia Among the Worst in the EU for Rental Burden
Since tenants are mostly individuals with lower incomes, it is not surprising that 29 percent of tenants in Croatia have housing costs exceeding 40 percent of the total disposable income of the household. By this criterion, Croatia ranks among the six worst members of the European Union.
According to Eurostat data, in Germany and Austria, only 14 percent of such households exist, and in neighboring Slovenia, 16.5 percent. In contrast, among homeowners, even those with a mortgage, only three percent of households exceed the aforementioned threshold of 40 percent.
Therefore, the affordable rental policy should primarily be aimed at individuals from the lowest income categories. However, the announced housing policy measures, such as tax refunds and the introduction of an affordable rental model, are largely aimed at the middle class, while the poorest remain insufficiently covered.
– The fact that housing measures are finally being introduced after a long stagnation is an important step forward – believes Marković.
However, without reliable data on the size and structure of the rental market, it is difficult to shape truly effective measures. The first step should be better record-keeping and systematic research – only then will affordable rental measures have a basis in reality, rather than in estimates and assumptions.
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The text was published with the financial support of the Agency for Electronic Media from the program to promote journalistic excellence.
