Urban Housing in Romania: Shifting Preferences and Market Pressures in 2025

Only 73% of Romanians living in urban areas currently reside in a home they own, a figure significantly lower than the official national ownership rate of 95%, according to a recent study conducted by Unlock Market Research for Colliers on a sample of 1,000 respondents.

The interest in purchasing a home has declined to 35% in 2025, compared to around 44% in previous years. This drop is largely attributed to rising housing prices and more restrictive lending conditions.

At the same time, only 6% of non-renters plan to move into a rental property — a decrease from roughly 10% in prior years. The limited supply of new homes and rising living costs have shifted renting from a temporary solution to a viable medium-term alternative.

Meanwhile, tenants have become more selective, seeking modern, fully furnished homes with added amenities — signaling a significant shift in the dynamics of the residential market.

In a homeownership-dominated housing market, only 11% of urban dwellers currently live in rented accommodations. In major urban centers, this rate climbs to 15%, indicating both a greater openness to renting and a more favorable rent-to-mortgage ratio.

Nationwide, 16% of urban residents live with parents, relatives, or friends, without owning property or paying rent. This trend reflects both economic challenges and a cultural preference for extended cohabitation.

Romanians looking to invest continue to favor the residential real estate market, seen as a safe option for long-term capital preservation and growth. Interest in alternative investment avenues remains limited, influenced in part by lower levels of financial literacy.

Although residential real estate prices have seen consistent growth over the past decade, offering a perception of stability and opportunity, this does not guarantee future returns. Each investment should be assessed on its own merits, not solely based on overall market trends.

Housing affordability varies greatly depending on location, with a growing gap between centrally located, well-connected areas and properties on the outskirts.

Most real estate developers are now focusing on metropolitan zones, where the price-to-income ratio is more favorable. However, in major cities, high property prices continue to make central housing less accessible for many buyers.

In light of these shifts, both buyer and renter behavior is adapting to the evolving real estate landscape.

With fewer newly built properties available in central locations and continued price increases, renting remains an attractive short- and medium-term solution, Colliers consultants note. However, as interest rates gradually decline and the gap between rent and mortgage payments narrows, homebuying intentions may see a gradual return.