High costs and low salaries: Young people in Bosnia and Herzegovina have no chance of buying an apartment

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While representatives of all political parties in Bosnia and Herzegovina say that young people must be a priority, solving the housing issue for many young people remains an unfulfilled dream because subsidies are insufficient. The skyrocketing price instills in young people additional pessimism that they will ever have their own apartment, he reports N1.

Even when they have a good salary and an indefinite contract, real estate prices make it impossible for young people to solve the housing problem. Thus, in Sarajevo, the price per square meter starts at 3,700 KM. 166 thousand marks are requested for 45 square meters. In order to take out a loan in that amount, young people must, according to the loan calculator of one of the banks, pay a monthly installment of 1,011 KM for 20 years. Most young people are far from the main condition for a loan – stable employment.

A study on young people showed that only 6.6% of them live independently. First of all, it is due to financial reasons. Only 15% of young people have a permanent job.

And those who have such a contract must have an above-average salary or, which is most common in practice, commit to a loan with their partner.

“Most married couples who take out a loan must both work because one salary is insufficient to cover standard expenses. For the vast majority, one entire salary goes to the installment, considering the rampant prices in both new and old buildings,” says Alma Mečević.

In Sarajevo Canton, young people received a subsidy in the amount of 4,800 KM. There are indications that this amount could reach 10,000 KM.

“They subsidized us one to two square meters according to the prices of 2023. If we get the rest, it will be a little more,” adds Alma.

The price per square meter grew in another entity as well. Now in the Republic of Srpska, the average price per square meter is 2,700 marks.

“It is difficult for them to get a loan, so they decide to live with their parents or, which is the majority, they are tenants. As for convenience, it is the only loan provided by the Investment Development Bank of Republika Srpska through commercial banks where the interest rate is more favorable and they have a return of interest”, explains Ranko Vukmanović from NEK Real Estate.

Sociologist Vladimir Vasić warns that the economic situation is the key reason for young people leaving.

“You constantly have in all these programs, political agendas… that they fight for the birth rate, for the preservation of the younger population, and the key reason for the departure of young people is, in addition to the unstable socio-political situation, the economic situation. The rulers are not interested in young people, it can be seen that they do not need a critical mass. They don’t need a critical mass of young people because such a mass is dangerous,” he adds.

The solution may be increased housing construction, as well as targeted subsidies intended for those who are far from meeting the current credit requirements. However, everything has been going in a different direction for a long time, so the demographic picture is getting worse every year.

Source: Acts