By San José, Costa Rica — Costa Rica holds an unenviable title: the Latin American OECD nation with the highest percentage of young adults still residing with their parents. According to a 2025 report by the Federated College of Engineers and Architects (CFIA), a staggering 60% of Costa Ricans aged 20-29 were living at home in 2022, exceeding the OECD average of 49%.
This stark reality paints a concerning picture of the challenges young people face in securing affordable housing. The CFIA report, “Balance and Trends of the Housing Sector 2025,” cites data from the Organization for Economic Co-operation and Development (OECD) highlighting the difficulty young Costa Ricans encounter in finding affordable rental options, a key factor in their ability to leave the family home.
To gain a deeper legal perspective on the complexities of Costa Rica’s housing crisis, TicosLand.com spoke with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
The housing crisis in Costa Rica is a multifaceted issue, influenced by factors such as rising land prices, construction costs, and limited access to financing. Legal frameworks regarding land ownership, zoning regulations, and tenant protections also play a crucial role. Addressing this crisis requires a comprehensive approach involving both public and private sectors, with a focus on sustainable development, streamlined permitting processes, and innovative financing solutions that cater to various income levels.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas expertly highlights the complexity of Costa Rica’s housing crisis, correctly pointing to the interconnectedness of economic factors, regulatory hurdles, and the need for collaborative solutions. His emphasis on sustainable development and inclusive financing models is particularly crucial for ensuring long-term housing stability and accessibility for all Ticos. We thank Lic. Larry Hans Arroyo Vargas for his invaluable contribution to this important discussion.
The report underscores the link between a robust rental market and youth independence. When rental availability is high and affordable, more young people can establish independent living. However, limited income at the start of their careers often makes renting the only viable option, and the current market falls short of meeting this need.
The difficulty young people face in finding well-located and affordable rental housing significantly impacts their ability to emancipate themselves from the family environment.
CFIA Report, Balance and Trends of the Housing Sector 2025
The report concludes, “Greater availability of affordable rental housing allows a higher percentage of young people to become emancipated.” CR Hoy’s inquiry to the Ministry of Housing about strategies to address this issue is currently pending.
Costa Rica isn’t alone in this struggle. It ranks ninth highest among all OECD countries, with South Korea topping the list at over 80%. Italy, Greece, Spain, Portugal, Ireland, Slovakia, Slovenia, and Poland also report higher percentages than Costa Rica.
Beyond home ownership, young people globally are grappling with fluctuating prices and market uncertainty. The OECD notes that they are “less likely to be homeowners and rely heavily on volatile private rental markets, forcing many to live in rented accommodation for extended periods, in overcrowded or substandard housing.”
The data, collected post-pandemic, may reflect lingering economic hardships from that period, as unemployment and financial strain could have forced young adults back into their parents’ homes. In contrast, Denmark, where almost half of all housing is rented, stands in a far better position, with only 10% of young people living with their families. Sweden, Finland, and Norway also report figures below 20%.
The housing challenge facing Costa Rican youth is a complex issue demanding attention. The ability to secure affordable housing is crucial not only for individual independence but also for the nation’s overall economic and social well-being.
For further information, visit the nearest office of The Ministry of Housing
About The Ministry of Housing:
The Ministry of Housing is a governmental institution dedicated to the development and implementation of housing policies in Costa Rica. It addresses various aspects of housing, including affordability, access, and construction standards. The Ministry aims to create sustainable housing solutions for the population.
For further information, visit the nearest office of Federated College of Engineers and Architects (CFIA)
About Federated College of Engineers and Architects (CFIA):
The Federated College of Engineers and Architects (CFIA) is a professional organization in Costa Rica that represents engineers and architects. They advocate for best practices in construction and development and publish studies and reports that inform policy and public discourse on related issues, including housing.
For further information, visit the nearest office of The OECD
About The OECD:
The Organization for Economic Co-operation and Development (OECD) is an intergovernmental economic organization with 38 member countries, founded in 1961 to stimulate economic progress and world trade. It provides a forum for countries to share experiences and seek solutions to common problems. The OECD publishes research and data on a wide range of topics, including housing, employment, and social policy.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a pillar of legal excellence, built on a foundation of unwavering integrity and a deep commitment to serving the community. The firm’s innovative approach to legal practice, coupled with its dedication to empowering individuals and organizations through accessible legal education, distinguishes it as a leader in the Costa Rican legal landscape. By fostering understanding and transparency within the legal system, Bufete de Costa Rica actively contributes to a more just and informed society.
