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Marko Ercegović
Episode · #773

ZGRADONAČELNIK Marko Ercegović

Guest Marko ErcegovićHosted by Ana Leko VučkovićMay 3, 2026
About this episode
What you'll hear in this conversation

The challenge of affordable housing is no longer a niche concern; it's a defining issue for cities across Europe, and Croatia is no exception. With new laws on rent and affordable housing expected in 2026, the country is poised for a significant shift in how it approaches urban development. Marko Ercegović, an advisor to the Association of Cities in Croatia and a contact point for European urban initiatives, offers a ground-level view of this transformation. He explains how national policies intersect with local realities, why certain subsidies inadvertently drive up prices, and what it truly takes for cities to lead on housing. Readers will finish this conversation with a clearer understanding of the systemic forces shaping the future of urban living.

Insights from the conversation
What to take from this episode
01
Ercegović observes that offering demand-side subsidies like APN loans, while supply remains limited, is "quite logical and in line with basic economic theories" to increase prices. The lesson is that incentives for buyers, without a corresponding increase in housing stock, will inevitably inflate the market.
02
Croatia's local self-government has not actively managed housing for "almost thirty, forty years," causing a systemic loss of "practices, knowledge, standards." The real problem isn't just a lack of funds; it's the erosion of institutional memory and capability needed to build and manage complex housing solutions.
03
Ercegović finds the policy phrase "young people up to 45 years" for housing support "a little ridiculous," noting the age limit has steadily shifted upwards from 35. Housing policies tied to arbitrary age cutoffs often fail to address the broader demographic reality of housing struggles, requiring more nuanced criteria.
04
Cities *can* drive affordable housing, Ercegović says, but their authority is limited to their self-governing scope, requiring the state to "compensate for all deficiencies" at the local level. Local action, while crucial, only becomes effective when supported by a robust national regulatory and financial framework.
05
Other European countries addressed housing affordability by focusing on "additional construction, investing in public housing or subsidized housing," often through affordable rental models. The sustainable path to affordability lies in strategically increasing the supply of public or subsidized rental units, not just stimulating market demand.
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