According to a survey conducted by the Institute for Youth Development KULT, nearly 70 per cent of young people in the Federation of Bosnia and Herzegovina live with their parents in homes owned by their family. Only 15.9% live independently. For many young people in BiH, inheriting property remains the only realistic way to solve their housing situation. It is still common for individuals to become homeowners for the first time by inheriting a property, most often after the death of close relatives.
Young people say their ability to purchase their first home on their own is extremely limited.
The average employed young person in the FBiH earns less than the average salary, which was BAM 1,603 in November this year. In 2024, 51.6% of employed young people earned at or below the average wage, while only 11.6% earned more. According to the Institute’s survey on youth political literacy, 27.7% of young people earned between BAM 600 and 900 in the previous year.
Young people who have considered buying their first home say it is simply unaffordable given their current income and continuously rising property prices.
“My husband and I didn’t want to live with his parents or mine, so we decided to rent an apartment in Tuzla. We have decent incomes, but if we really had to, we’d probably end up living with our parents as well. Even with two salaries, we spend everything on basic expenses like rent, utilities, and food. Buying a property is completely out of reach. We looked at prices, and with our current income, it would take us 25 years to repay a loan, with one entire salary going toward the monthly instalment. That’s simply unsustainable,” said a 25-year-old woman from Tuzla Canton.
In practice, only young people who are considered creditworthy (primarily those with indefinite employment contracts) have any chance of purchasing a home independently. Even then, given that most young people earn around or below the average wage while property prices continue to rise, the quality of life after taking out a mortgage is another issue.
For example, a young person wishing to purchase a newly built 50-square-metre apartment would need at least BAM 153,650, based on the average price per square metre in the Federation of BiH (BAM 3,073/m2 in the first half of 2025). According to data from the Central Bank of BiH, the average interest rate for long-term mortgage loans (over ten years) was 3.8% in October 2025. For a 15-year loan term, the monthly instalment would amount to around BAM 1,120.
A 20-year loan would require monthly payments of BAM 914, while a 25-year loan would still cost BAM 793 per month, which is more than half of the average monthly income of young people. This raises the question of how much money would remain after covering basic living costs such as utilities and food.
It is also not a given that banks would even approve such loans, given this level of financial burden. These calculations are based on official average prices of newly built apartments in the Federation of BiH and average interest rates for long-term mortgage loans. Actual financing conditions vary by bank, while property prices depend on numerous factors, including location, construction quality, and available amenities.
Buying an older apartment can be slightly more affordable, but it often involves additional costs such as property transfer tax, renovations, or repairs.
“The main reason I decided to buy a home was the desire to be independent and stop paying rent. I didn’t want to keep investing money in something that wasn’t mine. The biggest challenge was finding a property with a realistic price relative to its quality and location. At the same time, it was difficult to find a bank that offered reasonable and manageable loan terms. It was a balancing act – finding a manageable monthly repayment amount and making sure the loan is sustainable in the long term. Taking on a mortgage inevitably means making sacrifices. Things I used to afford without much thought, like frequent trips, spontaneous weekend getaways, and occasional ‘luxury’ shopping, are not as easily affordable now. Having a mortgage changes your priorities completely, and you think about large purchases very differently,” said a 28-year-old man from Sarajevo who took out a 15-year mortgage, adding that young people today face enormous obstacles in purchasing their first home.
“Apartment prices are rising much faster than average salaries, the supply of quality housing doesn’t meet demand, and loan conditions are not always good. Despite high prices, demand remains strong, but supply simply doesn’t keep pace – this has been the experience of several of my friends. Young people are caught between high prices, strict lending conditions, and very limited opportunities to finally reach that right moment to buy. Housing policy needs to be far better regulated, especially when it comes to supporting young people.”
Another young man from Herzegovina shared his experience of taking out a mortgage and how it affected his life.
“The biggest problem I faced was that banks initially refused to approve a mortgage because of my employer’s legal registration status. I eventually found one bank willing to grant the loan, but only under the condition that I provide a co-signer. A 20-year loan was the only option I could afford; a shorter repayment period just wasn’t possible alongside regular expenses.
After buying the apartment, my quality of life changed significantly. More than half of my salary went toward the loan, while the rest covered utilities and basic expenses. Weekend trips, which I used to love, are no longer an option, social outings have been reduced to a minimum, eating out has become a luxury, and cultural activities are rare. Summer holidays require careful budgeting, choosing affordable accommodation and locations, and are significantly shorter than before, while winter travel is no longer even an option. Financially, life has become a month-to-month struggle, and I even paused my life insurance policy,” he explained.
For the past eight years, the Government of the Federation of BiH has implemented a programme offering more favorable housing loans for people under the age of 40 with stable employment. Loans of up to BAM 300,000 are available, with repayment periods of up to 25 years and the possibility of additional interest rate reductions based on the birth or adoption of a child. So far, more than 1,800 loans have been approved, totalling over BAM 213 million, benefiting young people from 50 cities and municipalities across the Federation of BiH.
Some cantons and local governments also offer subsidies to help young people purchase their first home, usually in the form of partial interest or tax coverage. However, given current property prices, these amounts make very little difference.
At the higher levels of government, the House of Representatives of the Parliament of the Federation of BiH adopted 41 conclusions and numerous recommendations proposed by the Parliamentary Commission for Youth Issues. These conclusions, which also address youth housing, were not adopted by the House of Peoples. If implemented, the recommendations could significantly improve the position of young people when it comes to affordable and accessible housing.
One of the conclusions also calls for the adoption of an FBiH-wide youth strategy. Although a draft exists, it has yet to be adopted. The proposed strategy includes measures aimed at improving access to housing for young people and was developed following months of consultations with youth, analysis of existing data, and additional research into their needs and challenges.
