Unaffordability is a major problem in housing

Research by the Ministry of Space organization "How (un)affordable is housing in Belgrade" showed that housing as a basic need and right is, unfortunately, unaffordable for a large number of citizens. A large number of pensioners, those who work for average wages or below, those with temporary employment, single parents, do not have many options when they want to rent or buy an apartment in Belgrade. An analysis of online ads for renting or selling real estate during March 2023 showed that these groups can only choose between 1% and 2% of available apartments.

Data obtained by the Ministry of Space through the algorithm of a digital platform created for the purpose of research show that, for example, a single mother with one child and an income of 620 euros can only choose about 1% of available apartments on the market.

"Housing in Belgrade depends on inheritance. If you don't have a relative who leaves you a place to live, it's very difficult to find it with an average income. The absurdity is greater, as there are thousands of apartments on offer, and we with average incomes can choose from a few dozen apartments. If we were to do a qualitative analysis, I am almost certain that it would turn out that the selection included spaces that are in the basement and on the verge of conditionality for living", says Marko Aksentijević from the Ministry of Space.

"In the last 6-10 months, the housing affordability crisis escalated and was more visible in the public and in the media than in previous months and years. Therefore, I think there is no longer any dilemma that the problem of unaffordability exists, but the map we created, it seems to me, very clearly shows the extent of that problem," says Jovana Timotijević from the Ministry of Space.

The mapping involved two values ​​that needed to be entered so that the algorithm could calculate the number of available, spatially adequate and affordable apartments - the number of members and the total monthly income of the household.

The number of available apartments that the algorithm puts out at a price goes up to the upper limit of the burden on housing costs, which for rent or credit is 30% of total income, according to EU housing cost standards. On the other hand, the size of the available apartments is determined according to the minimum square footage per person, and upwards.

When it comes to buying on credit, it is understood that the household already has ready savings of a minimum of 15.000, and an average of 38.000 EUR.

Along with the issue of unaffordability, the research also reveals the issue of spatial dispersion of available apartments. For example, a married couple without children whose total income is 1400 euros can choose from 10% of the advertised apartments. A larger number of apartments are available in Karaburma, Mirijevo, Žarkovo, Banovo brdo in Braće Jerković, Kumodraz, while there are very few apartments available in the central municipalities. In this way, in the long term, segregation, that is, spatial inequalities in cities, are strengthened.

"The results are devastating because it is clear that there are free and available apartments, but housing is seen as a commodity that has a high value on the market, so housing is used to acquire individual wealth instead of providing a roof over one's head. What is an additional problem is that, starting in 2021, changes are being announced to the Law on Housing and Building Maintenance, which is the key legal framework in the area of ​​housing. However, in 2021, as well as these days, in the context of changes in the law, only the part of the law that concerns the management of buildings is discussed, as if the issue of unaffordability does not exist. ", points out Timotijević. Digital platform is available for use and everyone can enter their parameters or those that interest them and look at the availability of affordable apartments in Belgrade.