Europe’s Housing Crisis is forcing a generation to put life on hold

Europe’s housing crisis is increasingly impacting a generation, forcing many to delay important life decisions. This resource, published by Euro Weekly News and authored by Farah Mokrani, highlights the pressing issue of rising house prices and rents across Europe, which have made affordable housing more elusive, particularly for younger generations.

Since 2010, house prices in the EU have surged by over 55%, while rents have climbed nearly 27%. In contrast, income growth has lagged, making it difficult for many to afford housing. This disparity has significant implications for young Europeans, who are now facing a reality where finding affordable accommodation is one of the most stressful parts of their daily lives.

A report from Eurofound indicates that individuals aged 18 to 29 are among the most affected by this housing squeeze. Many young adults are struggling to pay rent and bills, often delaying their move to independence or returning to live with their parents due to skyrocketing costs. This demographic is forced to make compromises, such as sharing cramped apartments or living farther from work, which undermines their ability to establish independence.

As job opportunities concentrate in urban areas, young people are drawn to cities, exacerbating the housing shortage. Although cities offer employment, they also face severe housing shortages, where demand continues to outstrip supply, driving prices higher. In countries like Romania, Latvia, and Bulgaria, overcrowding is prevalent, while other regions deal with smaller living spaces and long commutes.

In several EU countries, renting has become nearly impossible for many. In Portugal, Spain, Ireland, Poland, and parts of Austria and Italy, renting a standard two-bedroom apartment can consume more than 80% of the median salary. Portugal's housing market is particularly strained, with prices exceeding fair value by approximately 25%.

The challenges of the housing crisis are not confined to major cities; even coastal towns and tourist areas are witnessing steep price increases. This situation is prompting a growing sense of displacement among younger workers, who find themselves unable to afford living in the regions where they grew up.

In response to the growing crisis, governments across the EU are investing in housing, with an average of 5.3% of GDP allocated to this sector in 2024. However, investment levels vary significantly among countries. The European Commission has initiated its first EU-wide affordable housing plan, allocating funds to address speculation in housing markets and improve supply.

Despite these efforts, the impact of government investments is expected to take time, as new housing cannot be constructed overnight. In the meantime, the consequences for young Europeans are becoming increasingly apparent, including delayed independence, limited career options, and strain on mental well-being.

For many young individuals, the housing crisis is the most significant factor shaping their future, overshadowing education and career ambitions. Until affordability aligns better with reality, the pressing question for many young Europeans is not about where they wish to live but whether independent living remains a viable option at all.