LJUBLJANA, Dec. 23 (Xinhua) -- Slovenia plans to invest 1 billion euros (about 1.18 billion U.S. dollars) in the construction of public rental housing over the next decade to address a growing housing crisis, the Ministry of Solidarity-Based Future said on Tuesday.

"Slovenia is facing a severe housing crisis, with young people staying longer in their parents' homes, rapidly rising housing prices and rents, and a shortage of public rental housing," the ministry said in a statement published on its website.

To restore balance in the housing market over the medium and long term, the government will provide municipalities and housing funds with a stable, long-term financial framework, the ministry said. It added that the government is also systematically reviewing and activating public land to speed up construction.

According to the plan, around 20,000 new public rental apartments are expected to be built by 2035. Slovenia currently has about 36,000 public rental apartments, a figure that falls well short of demand.

Under the housing program for the 2026-2035 period, which is expected to be submitted to parliament for approval in the coming months, approximately 100 million euros will be allocated annually for new public rental housing projects.

The center-left government led by Prime Minister Robert Golob had pledged to expand rental housing but has so far struggled to deliver on its promise. Slovenia is scheduled to hold a general election on March 22.

According to data from the national Statistical Office, prices of apartments and residential houses in the third quarter of 2025 more than doubled compared with 2015 levels, largely due to insufficient housing supply. (1 Euro = 1.18 U.S. dollar)