Advisory Center for Affordable Settlements & Housing

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Document Type General
Publish Date 06/09/2013
Author Miguel Galdiz, Jennifer Joel-Obado, Gabriela Korodi, and Bunga Manggiasih
Published By Policy Research Reports
Edited By Saba Bilquis
Uncategorized

Housing Policies in Macedonia, Bulgaria, Poland, Romania

Housing Policies in Macedonia, Bulgaria, Poland, Romania

Introduction

The housing sector in North Macedonia faces challenges including housing supply deficits, inadequate housing for vulnerable groups, low-quality housing stock, and the need for better regulations10. A study on housing policies in Macedonia, Bulgaria, Poland, and Romania, emphasizes these critical issues, aiming to provide Habitat for Humanity with a clear perspective on housing deficiencies in these countries10.

Housing Policies

General Housing Conditions
North Macedonia has a population of 1,836,713 people, 598,632 households, and 839,174 apartments3. A significant number of apartments, 307,187, are empty, representing 36.6% of the total3. Despite the increase in the number of apartments, the population has decreased by 185,834 people (9.2%) since 2021, with 207 settlements completely vacated3. This prevalence of empty apartments poses potential risks such as increased criminal activities and maintenance problems3.

Housing Rights and Legal Framework
Everyone is entitled to adequate housing, protection from eviction, and non-discriminatory access to affordable, habitable, culturally appropriate, and safe housing, regardless of sexual orientation, gender identity, or marital status3. The national housing legislation in North Macedonia includes all housing laws, by-laws, and programs that regulate the housing sector3. Changes in legal regulations began in 1998 with the adoption of the Law on Housing, which has undergone several amendments to address dynamic changes in the area3. A working group is currently working on improving the housing law at the national level3. 

The Housing Strategy of Macedonia, although used as the basis for shaping housing policies, has not been updated since it was valid from 2007 to 20123. The strategy involves various entities and strengthens cooperation between state and local institutions, civil society organizations, private builders, and other market participants3. The government of North Macedonia is responsible for creating and implementing housing development policies, adopting a state strategy and an annual program for the construction, sale, and maintenance of residential spaces owned by the state7. 

It also monitors the establishment of lease relationships and provides measures and instruments for stimulating housing construction7. Each municipality maintains a register of residential buildings and apartments7. The Regulatory Housing Commission is established to provide long-term, standardized, and harmonious housing development, adhering to contemporary standards of qualitative life and environmental protection7.

Social Inclusion and Vulnerable Groups
One of the strategic goals of North Macedonia from 2010 to 2020 was to achieve standardized and harmonious housing conditions for socially excluded citizens, ensuring qualitative housing conditions for all1. Social exclusion in housing policies is a complex phenomenon correlated with other forms of social marginalization, with economic, cultural, and legal barriers being the primary obstacles to decent housing1.

These barriers include substandard housing, lack of access to financing, and legal insecurity due to illegal buildings1. Measures to promote social inclusion in housing policies include decreasing substandard housing conditions through communal connections, infrastructure, subsidies for housing improvements, and the application of regulations that enable legal regulation of constructions1. Specific groups, such as low-income families, young people, young married couples, single parents, and pensioners over 60 without their own apartments, are considered persons at social risk5. However, the Law on Housing does not specifically identify homeless people as a separate category5. 

A Council of Europe Development Bank loan aims to construct 32 facilities with 1,754 social housing units for people at social risk and other vulnerable groups5. Projects have been initiated to provide apartments ranging from 35 to 45 m2 for vulnerable groups, with a total value of 50,700,000 euros, half of which is funded by the state3. As of now, 14 buildings have been constructed and occupied, improving the living conditions of 678 families3.

Housing Market and Economic Factors
The transition to a market economy has changed the valuation system of apartments, shifting them from a social category to a market commodity3. Market prices have increased, creating uncertainty for potential buyers3. There is a shortage of quality apartments for sale, leading to a chaotic market situation3. The state needs to develop various social housing models to assist vulnerable groups and the majority of citizens3.

North Macedonia has a high homeownership rate of 95%, surpassing the EU average of 71%10. However, in Skopje, only 50% of properties had registered titles as of 2008, despite a national program to register titles10. Rental housing is insignificant, with only 5% of the stock volume, and there is a lack of data on privately owned dwellings rented out informally10.

Recommendations and Future Strategies
To address the identified challenges, several recommendations have been proposed:

  • Develop a new housing strategy based on the data obtained from the 2021 Census3.
  • Integrate the topic of housing policies into the country’s development strategy3.
  • Promote greater organization of tenants and fully respect their rights3.

Habitat for Humanity Macedonia focuses on renovating the housing stock, providing policy advice, management services, and housing finance to improve energy efficiency in multi-family residential buildings9. They address the significant housing needs caused by the poor quality of housing stock inherited from the centrally planned economy era9. Massive internal and external migration, triggered by a weak economy, has resulted in a lack of decent and affordable housing in cities, while many rural homes remain abandoned9.

Also Read: International Housing Affordability Survey

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