A broken housing market is driving inequality right across Europe – and fuelling the far right

The article examines the broken housing market across Europe, highlighting how rising housing costs contribute to growing inequality and fuel the rise of far-right political movements. It is published by The Guardian, a reputable British news organization known for its in-depth analysis and commentary on social issues. The piece is authored by various housing experts who provide insights into the housing crisis in different European cities.

Housing is a deeply personal issue, representing not just a place to live but a reflection of individual aspirations and dreams. Unfortunately, for many, the dream of affordable housing is becoming increasingly elusive. The European Parliament reports that from 2015 to 2023, housing prices in the EU surged by nearly 50%, while rents increased by 18% from 2010 to 2022. This trend is not limited to specific communities but is a continent-wide problem affecting individuals and families alike.

The article features contributions from housing experts who illustrate the crisis in various cities. In Lisbon, policy changes following the 2008 financial crisis have led to wealthy foreigners purchasing second homes and short-term rentals, effectively driving locals out of the market. In Amsterdam, older residents often benefit from secure social housing, while younger newcomers struggle with high rents in the private sector. Budapest follows a similar trend, where the privatization of social housing has resulted in increased prices, leaving younger generations at a disadvantage.

Contrastingly, Vienna has maintained a stable stock of social housing since the 1920s, providing affordable options for tenants of all incomes. This long-term focus on social housing has helped to keep rents manageable, even as newcomers typically rent privately. The case of Vienna illustrates how effective housing policies can mitigate the affordability crisis seen in other cities.

Over the past four decades, housing policies across Europe have favored property investors over residents. This shift has turned homes into assets rather than places to live, exacerbating wealth inequality. Such inequality breeds resentment and dissatisfaction, which far-right politicians have exploited for political gain. The European Commissioner for Jobs and Social Rights, Nicolas Schmit, has warned that the housing crisis poses risks to societal cohesion and democracy.

In 2024, European housing ministers collectively signed a declaration advocating for a "new deal" focused on affordable and social housing. This represents a significant step towards addressing the crisis, indicating that there is both political will and potential solutions available. The ongoing series aims to raise awareness and support for those facing unaffordable housing, reminding them they are not alone in this struggle.