How to lose friends and alienate people: The social and political consequences of Europe’s housing crisis

The article "How to lose friends and alienate people: The social and political consequences of Europe’s housing crisis" was authored by Eoin Drea and published by the Wilfried Martens Centre for European Studies in 2024. This publication addresses the pressing issue of affordable housing in Europe, highlighting its social and political ramifications, especially among young people. The piece discusses the urgent need for sustainable housing solutions in the context of a global housing crisis, where an estimated 1.6 billion people are expected to be affected by housing shortages by 2025.

The article defines a housing crisis as a significant lack of affordable housing options for purchase or rent. This issue extends beyond Europe, affecting developed nations worldwide. For instance, the United States is facing a shortage of over four million affordable housing units. In many developed countries, housing prices have outpaced income growth over the last decade, exacerbating accessibility issues. The article notes that in the EU, excessive housing costs are a primary concern for citizens, with a substantial portion of household income allocated to housing, often at the expense of other basic needs.

Drea emphasizes that the housing crisis has profound social implications, particularly for young adults. Many young people are delaying independent living and family formation due to unaffordable housing. Surveys indicate that in countries such as the UK and Ireland, a significant percentage of young adults have postponed starting families because of housing costs. Additionally, the article points out that mental health issues are exacerbated by housing insecurity, creating a vicious cycle that affects young people's overall well-being and resilience.

The article highlights a worrying trend among young people, who increasingly believe they will not achieve the same financial security as their parents. The reliance on inherited wealth is growing, leading to greater intergenerational inequality. Many young adults are returning to live with their parents, further delaying their ability to establish independent lives. This situation has led to a pervasive sense of pessimism regarding future prospects and social mobility.

The article connects housing issues to political alienation, particularly among younger voters. Drea argues that dissatisfaction with established political parties stems from their failure to address the housing crisis effectively. Young voters increasingly associate housing challenges with immigration, which has been leveraged by far-right parties to gain support. In the Netherlands, for instance, younger voters have shown increased support for extreme parties, reflecting their frustrations with mainstream political solutions.

To address the housing crisis, the article proposes three immediate actions. First, it advocates for the expansion of housing construction to meet demand across various sectors, including affordable and social housing. Second, it calls for public funding to ensure housing options are available for all demographics, avoiding schemes that inflate housing prices. Lastly, the article emphasizes the need for equitable taxation across generations, particularly regarding property wealth, to mitigate existing inequalities and foster social mobility.

Drea concludes by reiterating that the housing crisis is a crucial issue that must be addressed to prevent further political polarization and alienation among young people in Europe. The proposed solutions aim to create a sustainable housing market that accommodates the needs of all citizens, ultimately contributing to social and economic stability.