Overview of the Study
The report Europe under Housing Stress – Housing‑stressed Areas in Europe: Comparative Approaches and a Proposal for a European Housing Stress Index is authored by Luis Manuel Sanmartín Cava and published by the European Free Alliance. It analyses the growing housing crisis across EU Member States, compares national schemes that identify housing‑stressed areas (HSAs), and proposes a unified European Housing Stress Index (EHSI) to support coordinated policy action.
Key Findings on Housing Affordability
Eurostat data show that between 2010 and 2024 house‑price levels rose by 53 percent and rents by 25 percent, with the EU average house‑price index increasing by ≈ 67 percent from 2013 to 2025. Consequently, 1.3 million Europeans now live in precarious housing, including 400 000 minors. Energy costs exacerbate the problem: 8‑16 percent of the population (≈ 35‑72 million people) experience energy poverty, and housing‑related utilities rose by ≈ 1.8 percent in 2022, the highest among consumer groups.
Comparative National Approaches
- France distinguishes “zones très tendues” (VTZ) and “zones tendues” (TZ), applying rent‑control caps and vacancy‑tax measures.
- Germany permits Länder to designate “Gebiete mit angespannten Wohnungsmärkten” using four indicators (rent growth, rent‑burden, population growth vs. construction, vacancy rate). Over 13 Länder cover 492 municipalities, affecting about 38 percent of the population.
- Scotland introduced Rent Pressure Zones (RPZ) in 2016, limiting rent increases but never achieved formal designation due to evidential hurdles. Recent legislation creates Rent Control Areas (RCA) with mandatory five‑year assessments.
- Ireland set clear thresholds: rent growth > 7 percent over four of six quarters and rents above the national average, leading to coverage of ≈ 65‑80 percent of the rental market by 2023.
- Spain (Law 12/2023) requires either housing costs > 30 percent of average net income or price growth ≥ CPI + 3 percentage points. Designations exist in five autonomous communities, covering 317 municipalities.
Proposed European Housing Stress Index (EHSI)
The EHSI comprises three dimensions:
- Affordability – rent‑to‑income, price‑to‑income, housing‑cost‑burden (≈ 20 percent of income as a preventive benchmark), and price pressure relative to the HICP.
- Availability – housing‑stock growth versus household growth (3‑5 year moving window), functional vacancy rate, and share of social/affordable housing (benchmark ≥ 20 percent).
- Structural Pressures – tourism intensity (overnight stays per 1 000 inhabitants), density of short‑term rentals (STRs), proportion of second homes, insularity, student demand, metropolitan concentration, and cross‑border labour flows. Each indicator includes suggested operational thresholds (e.g., STR penetration < 1 % low, 1‑2.5 % moderate, > 10 % exceptional). The index aims to identify areas where at least two pressure indicators are present, with one from affordability or availability, while allowing aggravating factors (e.g., islands, high tourism) to lower the threshold for designation.
Policy Implications and EU Instruments
The EHSI can guide the European Affordable Housing Plan (EAHP) by targeting Cohesion Policy funds (ERDF, ESF+, JTF) to territories with demonstrable stress. It supports differentiated measures such as:
- Expanding social‑housing stock where the 20 % benchmark is unmet.
- Mobilising vacant dwellings in low‑vacancy zones (functional vacancy < 3 %).
- Regulating STRs and second‑home concentrations in tourist‑heavy regions.
- Implementing pre‑emption rights, vacancy taxes, or progressive fiscal tools to curb speculative acquisitions. The report stresses that any EU‑supported investment should carry long‑term affordability safeguards, especially when public land, grants, or blended finance are involved.
Sustainable Housing Focus
Across all case studies, the authors highlight the need to couple housing affordability with environmental sustainability. Energy‑efficient retrofits, reduced carbon footprints of new construction, and the integration of green‑building standards are presented as essential complements to any stress‑mitigation strategy. The EHSI’s structural‑pressure dimension explicitly accounts for energy‑poverty, encouraging policies that lower household energy costs alongside rent or mortgage burdens.
Conclusion
The document delivers a comprehensive, data‑driven framework for recognising housing‑stressed areas throughout Europe. By harmonising indicators, acknowledging national heterogeneity, and linking stress diagnostics to EU funding mechanisms, the proposed EHSI offers a pragmatic tool for policymakers, planners, and housing advocates committed to building a more affordable, available, and sustainable European housing landscape.