Housing hardships hit home

This article discusses the ongoing housing crisis in Europe, highlighting the challenges posed by rising rents and the high cost of borrowing. Published by Euranet Plus News Agency, the report is authored by Joanna Neville, who specializes in covering significant socio-economic issues affecting Europe. The article emphasizes the urgent need for sustainable housing solutions as millions of people face hardships in accessing affordable homes.

Currently, the EU is facing a critical shortage of affordable housing, with 4 million homes needed, particularly affecting low-income individuals and young people. The average house prices across the EU have surged by 53% over the last decade, with rents following suit. In some countries, prices have even tripled, exacerbating the accessibility crisis for young workers and essential personnel.

At a recent summit, EU leaders acknowledged the housing crisis, marking the first time this issue was placed on the agenda. António Costa, President of the European Council, stressed the importance of EU support for member states in addressing this crisis. Luxembourg's Prime Minister, Luc Frieden, revealed that the problem is not confined to any single nation, with his country experiencing a 60% rise in house prices over the past decade.

In Greece, over 35% of household income was allocated to housing costs in 2024, the highest average in the EU. Despite having one of the highest homeownership rates, Greece faces severe housing challenges due to a combination of empty homes and low purchasing power. In cities like Lisbon, Barcelona, and Madrid, tenants are spending an unsustainable portion of their income on rent, sometimes exceeding their monthly salary.

The housing market has created significant economic disparities, with the wealthiest 10% owning 40% of housing wealth while the bottom 50% owns none. This inequality perpetuates a cycle where wealthy individuals can afford to invest in properties, while those without family support or high salaries struggle to secure housing.

Efforts are underway to develop policies aimed at ensuring decent, sustainable, and affordable housing. The European Commission is preparing a plan that will leverage EU funding to enhance national efforts in providing accessible housing and combating homelessness. Meanwhile, experts are advocating for increased investment in affordable rental housing as a solution to the crisis.

Countries like Finland and Austria serve as models for effective housing policies. Finland's "Housing First" initiative has successfully reduced homelessness, while Vienna boasts a robust social housing system that supports a significant portion of its citizens. These examples underscore the importance of prioritizing social housing and innovative solutions to meet the growing demand for affordable living spaces.

Looking ahead, the European Parliament is committed to keeping housing issues on the agenda, with plans for a housing summit in 2026. This ongoing dialogue is crucial for addressing the housing crisis and ensuring that sustainable solutions are implemented across Europe.