2.3.The Housing Situation Now

ideologies have sent the housing market, after the revolution, in a different direction than the one in the western countries. While in the west, the housing market was mainly under the free market system, in Romania, the transition after 1989 has been marked by two main policies, privatisation and restitution, both with negative and positive impacts (Tsenkova and Polanska, 2014). Their effects are still being seen in the housing sector after 25 years and they hinder the access to affordable housing, especially for the younger generation (Habitat, 2015).

2.3. The Housing Situation Now

The previous section presents an overview of the housing history in Romania and how two different political ideologies have dealt with the issue of affordable housing. This section focuses on the present situation by examining new and updated statistical data, reports, and journals. Firstly, it briefly presents some effects of low quality housing and lack of housing. Secondly, the section analyses Romania`s housing statistics in comparison with other European countries. This helps to understand the data and the magnitude of the issues. The section analyses some of the present and past elements that influence the affordability of housing and details the main ones such as the costs, overcrowding, the housing quality, the distribution of ownership, the housing market and social housing.

The Council of Europe development Bank (2016) estimates that around 123 000 young adults under 35 need affordable accommodation in Romania (CEB, 2016). Most of them live with their parents, in overcrowded conditions because their income does not allow them to buy or rent a home (CEB, 2016). Young adults are considered one of the vulnerable groups of people affected by housing exclusion which generates social exclusion and decreases the quality of life (Pittini, 2012). Lack of housing and low quality housing are important factors that affect the health and everyday life of the individuals, and are under the danger of “environmental hazard". (Avramov, 1995, p.68) This environmental hazard causes psychological stress, developing deficiencies, social segregation, physical health issues and sometimes it is associated with the inability of accessing social services such as healthcare, education, or cultural and leisure facilities (Avramov, 1995). Habitat for Humanity (2015) report also mentions the

there are advantages related to an adequate amount of affordable housing which lead to social cohesion and economic progress (Habitat, 2015). Thus, understanding the factors that lead to this housing shortage has many benefits.

The data from the Habitat for Humanity report links the problem of affordability in Romania to two present issues which are: the rising prices for homes and the decrease of social housing construction (Habitat, 2015). The report shows that this results in a large part of the population living in bad housing conditions and deprives them of the ability of providing other necessities such as food, healthcare or even clothes (Habitat, 2015).

The matter is also connected with the past; with the communist legacy and the number of housing that was built between 1945 and 1989. For example, studies show that the housing policies of the communists impact the housing occupancy today (Soaita, 2014). The amount of housing built by the communist regime represents 75% of the entire existing stock ,while only 11% is represented by the post-communist housing and 14% by the pre-communist (Soaita, 2014). In addition, according to the National Statistics Institute report from 2010 there are 2.7 million flats built by the communist government which are still inhabited and account for 37% of the used housing in Romania (NIS, 2010). After 1989, the rate of housing construction slowed drastically. (see Figure 2)

Figure 2. Dwelling stock by construction periods. Source: Soaita (2014)

Some other variables have also affected the affordability for young adults (Housing Europe, 2015). One of them has been the value of the Romanian currency, which was very unstable in relation to foreign currencies, such as the Euro or the Swiss franc and increased the costs of the mortgages (Housing