According to the results of research by the Institute for Youth Development KULT, almost 70 percent of young people in the Federation of Bosnia and Herzegovina live with their parents in an apartment or house owned by them, while only 15.9 percent of young people live apart from their parents.
Research shows that a large number of young people in Bosnia and Herzegovina see the solution to the housing issue exclusively through inheritance, which is still one of the most common ways of getting the first property in the country. According to young people, the possibilities of independent purchase of an apartment or house are extremely limited.
The Institute’s data indicate that the average employed young person in the Federation of Bosnia and Herzegovina earns less than or around the average salary, which in November 2025 was 1,603 KM. 51.6 percent of employed young people had incomes lower than or equal to the average salary, while only 11.6 percent earned more than that amount. During the previous year, 27.7 percent of young people earned a monthly income between 600 and 900 KM.
Young people who are considering buying their first property point out that they cannot afford it due to rising housing prices and insufficient income. According to official data, the average price per square meter of an apartment in a new building in FBiH in the first half of 2025 was 3,073 KM. For an apartment of 50 square meters, you need at least 153,650 KM, without additional costs.
With an average interest rate of 3.8 percent for long-term mortgage loans, the monthly loan installment for a period of 15 years would amount to about 1,120 KM, while for a 20-year loan it would amount to 914 KM, and for 25 years about 793 KM. Even in the longest repayment period, the monthly installment exceeds half of the average income of young people, which further calls into question the creditworthiness and quality of life after buying real estate.
The situation when buying apartments in old buildings is only slightly more favorable, with additional costs such as real estate sales tax and investment in renovation.
The institute states that only young people with permanent employment and a contract for an indefinite period have a realistic possibility of buying their first real estate, but even then, credit debt often implies long-term financial sacrifices.
In the Federation of Bosnia and Herzegovina, there has been a program of the Government of the Federation of Bosnia and Herzegovina for eight years, which provides more favorable housing loans for people up to 40 years of age, with a maximum amount of up to 300,000 KM and a repayment period of up to 25 years. So far, more than 1,800 loans have been realized, with a total value of more than 213 million KM, for young people from 50 local communities in FBiH.
Certain cantons and local communities offer additional forms of subsidies, such as co-financing part of interest or taxes, but these amounts, according to estimates, have a limited effect in relation to current real estate prices.
At higher levels of government, the Committee for Youth Affairs of the House of Representatives of the FBiH Parliament issued 41 conclusions and a series of recommendations that also refer to youth housing. Although the conclusions were adopted in the House of Representatives, the House of Peoples of the Federal Parliament did not confirm them. Among the recommendations is the adoption of the FBiH Youth Strategy, which would include measures to improve the position of young people in the area of housing.
