According to Serbian Economist, Montenegro’s housing stock is growing rapidly, but its population is not. According to UNECE data, the 2023 census recorded 392,900 residential properties in the country—78,200 more than in 2011.
Over the past 12 years, the number of apartments and houses has increased by approximately 26%, while the population has remained unchanged at around 624,000 people.
As a result, there are now 627 apartments and houses per 1,000 residents in Montenegro. This is approximately 21% higher than the EU average.
The main problem is that only 54% of housing is used for permanent residence. About 46% of properties stand vacant or are used seasonally, as vacation homes or for tourist rentals.
On the coast, this is linked to tourism, foreign buyers, and short-term rentals. In the north of the country, the reason is different—population outflow and depopulation.
A telling example is Žabljak: there, the number of homes has increased by more than 30%, even though the population has shrunk by about 18%.
For Montenegro, this is becoming a structural problem. Real estate and tourism generate quick profits, but they do not solve the issue of affordable housing for local residents. In Budva, Kotor, Tivat, and Bar, there is formally plenty of housing, but living there permanently is becoming increasingly expensive.
The main conclusion: Montenegro is facing the paradox of the tourism economy—the number of apartments and houses is increasing, while affordable housing for permanent residents may be decreasing.
