Housing policies in the European Union

Overview of the Report

The document presents the annex of “Housing policies in the European Union – Country Reports” compiled by the Institute for Housing and Environment (IWU) in Darmstadt. The report aggregates expert questionnaires, scientific country experts and housing focal points for each EU member state, providing a snapshot of national housing systems, tenures, policy instruments and emerging challenges. It is intended for policymakers, researchers and practitioners interested in the comparative analysis of housing across Europe.

Publisher and Author Background

The Institute for Housing and Environment (IWU) is a German research institute specializing in housing market analysis, urban development and environmental aspects of dwelling. The authors – Max‑Christopher Krapp, Martin Vaché, Björn Egner, Kai Schulze and Samantha Thomas – are senior researchers at IWU with expertise in housing economics, policy evaluation and sustainability. Their work combines quantitative data from Eurostat, the European Mortgage Foundation and national statistical offices with qualitative insights from national experts.

Key Housing Statistics

Across the EU, the report highlights that real‑GDP per capita ranges from €6 550 in Bulgaria to €48 530 in Denmark, reflecting divergent economic contexts for housing. Population density varies widely, from 63.9 inhabitants km⁻² in Bulgaria to 375.3 inhabitants km⁻² in Belgium. The proportion of the population aged 65 + spans 15.9 % in Cyprus to 21.0 % in Bulgaria, indicating aging pressures on housing demand. Housing cost over‑burden rates are consistently higher in cities than in rural areas, with several countries reporting over‑burden exceeding 10 % of disposable income for urban households.

Tenure Structures Across Countries

Owner‑occupation dominates in most nations, ranging from 65 % in Belgium to over 80 % in Bulgaria and Croatia. Rental tenures are less uniform: private market rentals account for 10–30 % of dwellings, while social or subsidised rentals constitute 5–15 % depending on the country. Notable exceptions include Austria’s strong municipal housing sector and Denmark’s mixed system of private, cooperative and public rentals. Cooperative housing and limited‑profit housing associations (LPHA) play a significant role in Austria and the Czech Republic, offering lower‑cost rentals and promoting energy‑efficient retrofits.

Policy Instruments for Sustainability

All surveyed countries employ a mix of subsidies, tax reliefs and allowances to improve housing affordability and energy performance. Common tools include:

• Housing allowances tied to income and household size (e.g., Austria’s “Wohnbeihilfe”).
• Mortgage interest tax deductions and first‑time‑buyer subsidies (e.g., Croatia’s “Kaufförderungen”).
• Targeted energy‑efficiency premiums for retrofitting (e.g., Austria’s “Energy Saving Premiums”).
• Grants for low‑income households to offset heating costs (e.g., Bulgaria’s Winter Supplement Programme). Several EU members have introduced “green” building codes and minimum energy standards, with Denmark emphasizing village renewal and the Czech Republic supporting barrier‑free renovations.

Trends and Challenges

Demographic change, net migration and urbanisation are recurring drivers of housing demand. Austria and Belgium report rising pressures on affordable urban housing, while Bulgaria and Croatia face population decline and ageing, prompting a focus on maintaining existing stock. Energy poverty remains acute in Eastern Europe, where a large share of the building envelope predates modern insulation standards. The report notes that many countries lack comprehensive data on the condition of older dwellings, hindering targeted interventions. Additionally, regulatory fragmentation – especially in rental markets – creates barriers to coordinated sustainability policies.

Recommendations for Sustainable Housing

The annex suggests that EU‑wide coordination could improve data collection on building performance, enabling better benchmarking of retrofitting outcomes. Strengthening financial incentives for deep‑energy renovations, particularly for owner‑occupied flats, is highlighted as a priority. Expanding cooperative and limited‑profit housing models may increase the supply of affordable, energy‑efficient rentals. Finally, integrating housing policy with broader social and environmental strategies – such as linking housing allowances to energy‑efficiency upgrades – is presented as a pathway to achieve both affordability and sustainability goals across Europe.