Global

Across Europe, the housing market in 2025 shows a mix of recovery and persistent affordability challenges. About 68% of Europeans own their homes, while approximately 32% rent; these figures vary widely, with homeownership as high as 91% in some Eastern countries and below 50% in markets like Germany. The recent median price to buy an apartment in the EU averages roughly 3,800 euros per square meter, though major cities often exceed 10,000 euros per square meter. Median rents are near 14 euros per square meter monthly, again higher in major metropolitan areas.

House prices and rents both continue to rise, with prices up 5.7% and rents up 3.2% annually in early 2025. The housing shortage remains severe, as Europe faces a deficit of about 9.6 million homes.

Publicly owned housing maintains a notable but diminishing role. Public or social housing represents about 7% of the EU total housing stock, with higher shares in countries like Austria, France, and the Netherlands. Public housing and social housing are often used interchangeably, but in many cities, social housing is targeted to low-income groups, while public housing also includes broader categories managed by municipalities. Several cities restrict direct access to public housing based on social need, distinguishing it from broader public housing management. Publicly owned housing is not the main tenure type for most Europeans; its share continues to shrink amid privatization trends.

Ireland continues to experience one of Europe’s most intense housing crises, driven by rapid price rises and deepening affordability issues. In the year to May 2025, home prices rose nearly 8% nationwide—a 21-month run of price increases—pushing the median price to 370,000 euros, with Dublin median prices approaching 670,000 euros and some areas exceeding 770,000 euros. Rent levels have followed suit, with average monthly Dublin rents nearing 1,830 euros. The demand for housing drastically outpaces supply: only about 33,000 new homes are expected in 2025, far short of the Central Bank’s annual need estimate of 52,000. This shortage has resulted in record homelessness, now at 14,500 people.

Those hardest hit include first-time buyers squeezed out by high prices and rising borrowing costs, young professionals, low-income families, and renters contending with surging monthly rents. About 20% of people say they struggle to pay for housing, with another 35% barely managing, and a significant number are contemplating emigration due to housing costs. Homelessness impacts families and single adults alike. The crisis further strains the economy, as many cut essential spending to offset unaffordable housing. Unused derelict and vacant properties, numbering around 80,000, highlight ongoing inefficiencies in the housing system, exacerbating the shortfall and social distress.

After reviewing available data, there is no evidence of a city officially named "Global" in Europe. If the query refers to "global cities" (such as London, Paris, or Berlin), these cities address affordable and sustainable housing primarily through national government initiatives and EU-level actions, rather than local programs alone.

At the national level in Europe, affordable and sustainable housing is now a major policy priority. In 2025, the European Commission launched the Affordable Housing Dialogue to inform the forthcoming European Affordable Housing Plan, expected to set out new EU-wide targets and guidance. The Commission’s latest long-term budget proposal will channel multi-annual funding via National and Regional Partnership Plans, with 14% of the budget earmarked for social spending, specifically including social and affordable housing. This should unlock extensive funding for construction, renovation, and energy-efficiency improvements, while integrating private investment as well.

Concrete activities include boosting annual EU financing for affordable and sustainable housing by 40% in 2025 compared to previous years, pilot funding for renovating existing homes for energy efficiency, and targeted instruments through Erasmus+ to address student housing needs. The overarching aim is to increase both the affordable rental supply and energy-efficient new builds, reduce homelessness, and tackle the shortage with cross-cutting social and environmental initiatives.

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Housing cooperatives in Europe play a vital role in providing affordable, democratic, and sustainable housing, often offering prices at least 20% below market rates with a strong emphasis on resident participation. They constitute an estimated 3-8% of the total housing stock in leading cooperative countries, with Switzerland—including more than 1,500 cooperatives—reporting about 8% of homes as cooperative units, while Austria features close to 200,000 cooperative flats. However, shares are generally below the more substantial proportions seen in social or public housing.

The sector is undergoing expansion and innovation, driven by new models and increased interest after the 2008 financial crisis. Recent years have seen a rise in community-led and collaborative projects, with considerable policy attention focused on increasing supply and promoting resilience, solidarity, and energy efficiency. Notable initiatives include pan-European networks, EU-funded projects aimed at knowledge transfer between cities, and integration of digital governance and sustainable building practices. National governments are supporting cooperatives through dedicated funding streams, legislative frameworks to facilitate access and tenure security, and priority partnerships in urban regeneration. The European Commission promotes cooperative housing with multi-annual investments, legal reforms, and programs for social inclusion, specifically targeting young people and vulnerable groups. These coordinated efforts reflect a recognition of cooperatives as essential actors in addressing Europe’s housing crisis, though their overall market share remains moderate compared to total housing units.