Europe faces soaring housing costs and a widening shortage of affordable homes
Housing and rent prices have surged over the past 15 years, leaving many Europeans—especially young adults—struggling to find affordable, stable homes.
In Europe, the cost of buying and renting homes has jumped dramatically over the last 15 years, pushing affordable housing out of reach for low-income families, essential-sector employees and young adults. Young people aged 18-34 face the greatest difficulty, with many allocating a high proportion of their disposable income to housing and living in overcrowded conditions. Dan Jørgensen, the EU housing commissioner, highlighted the broader social and economic risks, noting impacts on labour markets, mobility and education.
Data show that home-ownership rates among those aged 45-54 have declined continent-wide, while construction authorisations have dropped, deepening the shortfall of dwellings. Greece, Denmark and Luxembourg report some of the highest housing cost burdens. The overall shortage of homes remains significant, with new builds failing to keep pace with demand.
Why it matters
Rising housing costs threaten economic stability and social wellbeing for millions across Europe.
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