On September 26, 2025, the Institute of Public Finance brought together experts from European universities and institutions, as well as housing policy-makers from Croatia and other European countries, for an international conference to discuss the latest insights in the economics and policy of housing affordability. The conference focused on new academic findings, international experiences and European initiatives, as well as efforts by the cities of Osijek, Split and Zagreb to develop sustainable housing policy models in cooperation with the European Investment Bank.

Housing affordability was once primarily a matter of social policy, but today it is also a key issue for economic development. In the past, housing economics and policy were mostly directed at supporting low-income populations and vulnerable social groups. However, over the past thirty years, affordable housing has become a broader economic concern that affects the competitiveness of cities and national economies.

The current housing crisis is the result of a series of interconnected factors: from accelerated urbanisation and demographic shifts to high housing demand and insufficient supply. The consequences are increasingly evident – a growing number of citizens are struggling to find affordable places to live and work, with the situation being especially difficult for young people and low-income households.

Despite numerous policies at both the national and European level, access to affordable housing remains an unresolved issue with serious social and economic consequences.

“The consequences of unaffordable housing are numerous and far-reaching. Rising housing costs pressure individuals and families to make trade-offs with other essential needs and diminish their well-being. It limits mobility for education or employment, potentially constraining economic growth. It also deepens divides among neighbourhoods and communities, weakens social cohesion, and contributes to existing social inequalities. We organised this conference to explore what institutional, political, and socio-cultural obstacles must be overcome to ensure adequate access to affordable housing for all.” said Vjekoslav Bratić, Director of the Institute of Public Finance, in his opening address.

The conference explored the key challenges and trends shaping housing markets – such as population ageing, mobility, migration and urbanisation – as well as the institutional and policy steps needed to secure fair and sustainable access to housing. The aim of the conference was to highlight crucial housing challenges facing our societies, better understand their scope, impact and implications, explore new policy options, and move closer to sustainable and socially just policy solutions. 

Opening speeches were delivered by Željko Uhlir, State Secretary at the Ministry of Physical Planning, Construction and State Assets; Hana Zoričić, Deputy to the Chief State Treasurer at Ministry of Finance of the Republic of Croatia; Hana Huzjak, Economic Counsellor at the European Commission Representation in Croatia; and Ivan Puh, Project Coordinator at the Friedrich-Ebert-Stiftung Zagreb.

The conference was supported by partners: the European Commission Representation in Croatia and the Friedrich-Ebert-Stiftung Zagreb, and sponsored by the Association of Cities in the Republic of Croatia, the Croatian Counties Association, and Janaf.

This was the tenth in a series of conferences organised by the Institute and its journal Public Sector Economics, held annually on different topics relevant to the development of effective public policies. More information, including presentations, is available on the conference website.