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

The article from The Guardian, authored by Kirsty Major, discusses the escalating housing crisis across Europe and its implications for social inequality. As housing becomes increasingly unaffordable, the article highlights how this phenomenon is not just a localized issue but a continent-wide crisis affecting various cities and communities.

From 2015 to 2023, the European Parliament reported that house prices in the EU surged by nearly 50% on average. Simultaneously, rents increased by 18% between 2010 and 2022. These alarming statistics illustrate the extent of the financial burden many individuals face when attempting to secure stable housing.

The article features insights from various housing experts, revealing how local policies have shaped the housing landscape. In Lisbon, for instance, policy changes following the 2008 financial crisis have led to an influx of wealthy foreign buyers, pushing local families out of the housing market. Conversely, in Amsterdam, long-term residents benefit from secure social housing while newcomers often struggle with high rents in the private sector.

In Budapest, the privatization of social housing post-Cold War has created a market where older generations invest in properties, driving up prices and rents for younger individuals. This trend of prioritizing private ownership over social housing has led to increased inequality, reflecting a broader European pattern where policies favor investors rather than residents.

A notable exception to this trend is Vienna, which has maintained a stable stock of social housing since the 1920s. This model allows for a balanced approach to housing, where social housing dampens rental prices and provides security for all income levels, contrasting sharply with the challenges faced in other major cities.

The article emphasizes that the housing policies across Europe have consistently favored investors over ordinary residents. This imbalance is particularly evident in countries with significant institutional investors, where properties are treated as assets rather than homes. Such a dynamic contributes to the widening wealth gap, transforming housing into a catalyst for social inequality.

As inequality grows, so does resentment, which far-right politicians have exploited for their gain. The article references a warning from Nicolas Schmit, the European Commissioner for Jobs and Social Rights, who has stated that the housing crisis poses risks to the integrity of democracies across Europe.

In 2024, housing ministers from European Union member states signed a declaration advocating for a "new deal" on affordable and social housing. This initiative reflects a recognition of the urgent need for reforms to address the housing crisis, emphasizing that there is political will to find solutions.

Kirsty Major concludes by expressing hope that the series will help those facing unaffordable housing recognize that they are not alone in their struggles. The article serves as a call to action for a collective effort to tackle the housing crisis, underscoring the importance of sustainable housing solutions across Europe.