Housing policy Slovakia

Housing of Ukrainian Refugees in Europe: Options for Long-Term Solutions

Slovakia has a slightly increasing population and a reasonably stable economy that has moderately grown over the last 15 years. Its housing system is characterized by a 92% owner-occupied sector, an insufficiently regulated and small private rental sector (6%) and a residualized and shrinking municipal sector (1.6%). Although a cooperative housing sector exists, it does not effectively differ from owner-occupation. The housing market for owner-occupied dwellings has developed significantly in the last ten years in terms of the growing importance of mortgages in housing transactions and the steady increase in housing construction. In addition, the state has been implementing transparent and predictable housing policies.

Key features

  • A State Housing Development Fund was established in 1996, which is a revolving fund that also incorporates the related EU funds, thus ensuring a stable financing source for housing subsidies over the years.
  • State housing policy involves two main schemes: (1) preferential loans and grants for municipal housing construction, (2) preferential loans for homeowners to renovate existing housing stock, including energy-efficient investment.
  • A substantial part of the housing stock (e.g. 70% of multi-family buildings) has been renovated thanks to the subsidy schemes.

Challenges

  • Major cities and the surrounding areas have experienced a significant increase in house prices, housing shortages and affordability problems.
  • Municipalities with booming house and labour markets do not engage in developing municipal housing stock, which is shrinking nationally due to ongoing privatisation. Smaller municipalities use some housing subsidies to improve the housing conditions of marginalised Roma communities, but the developments do not become part of the mainstream housing sector as they are implemented in a segregated way. 
  • There is a national housing allowance scheme, but it is insufficient for addressing affordability problems.

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