Unlocking the Potential of Empty Spaces in Croatia

Croatia is facing a paradox: while housing costs are rising and many young people are locked out of the rental and ownership markets, nearly a third of all homes meant for permanent residence sit empty. This contrast lies at the heart of a new research report on the country’s housing landscape—one that uncovers not just the challenges, but the untapped opportunities for creating more inclusive, sustainable communities.

The research, commissioned with support from Habitat for Humanity, dives deep into Croatia’s current housing dynamics. With more than 90% of homes in private ownership and a market heavily skewed toward speculative investment, the system has left behind many of those who need housing the most—young adults, low-income families, and those renting in an unregulated and increasingly unaffordable market.

But the issue isn’t a lack of buildings—it’s a lack of policy imagination.

Instead of pouring resources into building new units from scratch, the report suggests a smarter path: repurpose what’s already built but unused. Across urban centers like Zagreb, Split, and Osijek, there’s a growing stock of underutilized apartments, particularly in central areas. Meanwhile, suburban sprawl continues as families are priced out of city cores.

The good news? Croatia already has the beginnings of a policy framework to tackle this. From converting military barracks into housing, to piloting affordable rentals in unused private properties, early projects have shown promise. What’s needed now is scale—and political will.

The report highlights international examples, from Barcelona’s crackdown on tourist rentals to São Paulo’s progressive property taxes, as models for how Croatia can turn vacant properties into homes for those who need them. These global strategies center on a powerful idea: that housing is not just a commodity, but a basic right, and properties should serve a social function.

As the government shapes its National Housing Policy Plan 2030, the time is ripe to align policies with the realities on the ground—especially in the five major urban centers where over half the population lives. By rethinking vacancy, regulating short-term rentals, and prioritizing young and financially burdened households, Croatia has a potential to have the innovative, people-centered housing policy.