Malta needs a National Housing Strategy that brings together planning, land, taxation and social policy.
The 2025 KPMG-Malta Developers Association Property Market Report revealed a situation that should concern every policymaker: a young couple in their late 20s, both earning the minimum wage, can afford just 2.2% of advertised finished apartments in Malta, down from 5.7% only one year earlier.
This is not simply another housing statistic. It signals that the traditional path to home ownership is becoming increasingly difficult for young Maltese and Gozitan families.
Other data reinforces this warning. The National Statistics Office's Residential Property Price Index shows that prices rose by almost 45% over six years. Central Bank of Malta statistics indicate that the median home loan for buyers aged 18-25 increased by more than €53,000 in three years, while its Household Finance and Consumption Survey found that more than one-third of first-time buyers depend on parental financial assistance.
As Shadow Minister for Lands and Affordable Housing, I regard housing as one of Malta's most strategic policy areas. It concerns not only prices and assistance schemes, but also quality of life, social justice, economic competitiveness and the opportunities available to present and future generations.
Housing is a cross-government issue
Housing affects young people seeking independence, couples wishing to start a family, separated parents rebuilding their lives and older persons seeking security and dignity. It is inseparable from mortgage finance, banking, taxation, succession, public land, planning, infrastructure, environmental sustainability and technology.
When housing becomes unaffordable, young adults remain longer in the family home, couples delay having children, household debt rises and communities become less stable. Quality of life inevitably suffers.
Malta therefore needs a National Housing Strategy integrating land, planning, taxation, financial services, infrastructure, social policy and environmental sustainability within one long-term framework, supported by measurable objectives and clear accountability. Housing cannot be addressed through disconnected initiatives by different ministries.
Planning must become part of the affordability solution
Planning must continue protecting the environment, safeguarding urban quality and regulating development, while also contributing to housing affordability.
The policy governing one-bedroom residential units deserves periodic review to ensure that it reflects Malta's changing demographic and social realities. Malta now has more single-person households, elderly people living independently, young professionals entering the market and separated individuals seeking smaller, more affordable homes.
A carefully designed review could widen housing choice without compromising residential or urban standards. Good planning should deliver the right homes, in the right places, for today's society.
Affordable housing reduces pressure on social housing
The more affordable housing becomes, the less pressure there will be on social housing. Social housing must remain a safety net for those genuinely unable to secure accommodation through the market. However, when first-time buyers and middle-income households are priced out, demand for government assistance inevitably grows.
Success should therefore be measured not by how many families enter social housing, but by how many can secure suitable housing independently.
The Nationalist Party's electoral programme proposes a Rent-to-Buy model for government-owned properties, providing a pathway towards ownership instead of permanent dependency. It reflects a housing ladder: social housing for genuine need, affordable rental for those entering the market, Rent-to-Buy as a transitional stage and, ultimately, sustainable home ownership.
Housing policy should create opportunity, not dependence.
Affordable housing is also a policy instrument
Affordable housing is not merely an objective; it is a powerful public policy instrument. It can reduce poverty and welfare dependency, ease pressure on public finances, promote better use of public land and encourage more intelligent planning. It also strengthens communities, improves mental wellbeing and enables young people to remain in Malta, build careers and raise families.
An affordable home gives a family more than property ownership. It provides stability, security and confidence to invest in education, employment and the community.
An investment in Malta's future
Affordable housing should be recognised as a strategic national investment-one that strengthens social mobility, productivity, financial resilience and communities while reducing future welfare pressures.
The International Monetary Fund has also warned that banks' growing exposure to property and construction represents a vulnerability, with these sectors accounting for around 72% of private-sector lending. A healthier, more affordable housing market is therefore both a social and financial imperative.
Malta must move beyond isolated schemes and short-term interventions. We need an integrated National Housing Strategy, planning policies that evolve with society, fiscal measures supporting aspiring homeowners and reforms that make decent housing genuinely attainable.
When we make housing more affordable, we are not simply building more homes. We are building a stronger Malta.
Stanley Zammit is shadow minister for Lands and Housing