Just the Facts - Under One Roof? Europe’s Housing Crisis

The document titled "Just the Facts - Under One Roof? Europe’s Housing Crisis" was published by European Movement Ireland in 2024. It addresses the pressing housing crisis in Europe with a focus on current statistics and trends, particularly in Ireland, where housing and homelessness emerged as the most important issue for voters in the 2024 General Election.

Recent data from an Ipsos B&A exit poll indicated that housing was a major concern for 44% of Irish voters, significantly above the EU average of 10%. The Central Statistics Office reported an 8.6% increase in Irish residential property prices from June 2023 to June 2024, with median prices reaching €337,000. This reflects a troubling trend since the economic crash of 2008, as housing prices in some areas have surpassed those during the Celtic Tiger era. Furthermore, Eurostat's 2023 figures reveal that 56.2% of Irish adults aged 25 to 29 still live at home, which contrasts sharply with lower rates in other European nations.

The housing crisis affects various demographics across Europe, with rising costs outpacing disposable income since 2016. While homeownership rates are generally high in the EU, with 70% of the population owning their homes, disparities exist among member states. For instance, countries like Romania and Croatia exhibit high homeownership without mortgages, yet many homeowners still struggle to meet ongoing costs. Homeownership decreased from 71% in 2012 to 70% in 2020, with significant declines observed among young adults.

Young people and low-income groups are disproportionately impacted by the housing crisis. The percentage of young adults aged 20-29 who rent increased from 66% to 68% between 2010 and 2019. The age at which half of the EU population has moved out of their parents' homes rose from 26 to 28 from 2007 to 2019. This trend reflects broader social issues, such as delayed life decisions and potential impacts on social cohesion.

Eurofound's 2023 report identifies four primary housing problems: exclusion, insecurity, rising housing costs, and inadequacy. The homeless population represents approximately 0.2% of the EU, while many young adults face obstacles to independent living. Housing insecurity is prevalent, with a significant percentage of renters fearing eviction. Rising housing costs further exacerbate financial strain, particularly for low-income families.

While the EU lacks direct authority over housing policies, it influences them through fiscal and competition regulations. The Renovation Wave strategy aims to enhance energy efficiency and living standards, including affordable housing initiatives. Upcoming changes include the appointment of an EU Commissioner for Energy and Housing, emphasizing the importance of addressing housing issues in the next legislative term.

To combat exclusion, implementing Housing-First schemes has shown promise in reducing homelessness. Addressing housing insecurity requires proactive measures to prevent evictions. Financial subsidies and tax breaks can alleviate housing costs, though many programs have income thresholds that exclude some citizens. Improving housing adequacy involves increasing supply through construction and renovation while ensuring accessibility to essential services.

This summary presents a comprehensive overview of Europe’s housing crisis, highlighting the need for sustainable housing solutions that address the diverse needs of the population.