Part 1: Mapping the housing needs in the EU, assessing the impacts of scarcity and providing an overview of relevant EU legislation

Overview of the Study

This study, commissioned by the European Parliament’s Special Committee on the Housing Crisis (HOUS) and prepared by policy analysts Alina Makarevičienė, Greta Skubiejūtė, Agnė Zakaravičiūtė and Justinas Jočys, examines current housing needs across the EU. It maps inequalities in affordability, accessibility and quality, and evaluates how EU legislation and funding influence national housing policies. The research combines desk‑based analysis, quantitative data, stakeholder interviews and case studies, offering a comprehensive evidence base for policymakers.

Mapping the Housing Gap

The EU faces a shortage of roughly 925 000 housing units, representing a 0.8 % gap in the overall stock. Germany, Spain, France and the Netherlands exhibit the most pronounced deficits. In 2024, 8.2 % of Europeans were cost‑burdened (spending over 40 % of disposable income on housing), with rates ranging from 2.4 % in Cyprus to 28.9 % in Greece. Overcrowding affected 16.9 % of the population, especially in Romania (40 %) and Latvia (39 %). Severe housing deprivation—overcrowding combined with poor conditions—reached 11.6 % in Latvia and 9.6 % in Romania.

Regional Disparities and Urban‑Rural Divide

Southern and Eastern Europe experience higher overcrowding and deprivation, while Northern and Western regions contend with soaring prices. Urban households are more likely to be cost‑burdened (9.8 % vs 6.3 % in rural areas). Youth in urban centres face the highest cost‑burden rates, with 30.3 % of young people in Greece overburdened. Rural areas, however, exhibit higher overcrowding in some Eastern countries, illustrating varied regional pressures.

Gender and Age Inequalities

Women experience higher after‑housing‑cost poverty (31.2 % vs 28 % for men) and are more often unable to keep homes adequately warm. Single‑parent households, particularly those headed by women, face heightened risk. The average age of leaving the parental home rose to 26.2 years, with men leaving later (27.3 years) than women (25.4 years). Youth housing cost overburden reached 30.3 % in Greece, while 26.5 % of 15‑29‑year‑olds lived in overcrowded dwellings.

Income‑Based Challenges

Low‑income households are disproportionately affected: 27.2 % were cost‑burdened in 2024, compared with 12.7 % overall. In Greece and Denmark, over 50 % of low‑income families faced severe overburden. Severe housing deprivation rates are markedly higher in the lowest income quintile, exceeding 30 % in several Central and Eastern Member States. Energy poverty also concentrates among low‑income groups, with 19.7 % unable to keep homes warm.

Migrants, Refugees and Minorities

Non‑EU citizens experience higher overcrowding (34.2 % vs 13.7 % for nationals) and cost‑burdened rates (18.8 % vs 7.6 %). Discrimination in rental markets remains widespread, with ethnic minorities facing higher rejection rates. Migrants often rely on informal housing networks, leading to precarious conditions and limited access to social housing.

Persons with Disabilities

People with disabilities have a housing cost‑burden rate of 10.4 % (versus 7.8 % for non‑disabled households). Overcrowding is lower for this group (11 % vs 16.1 % overall), yet they face significant barriers to accessible housing: only 28.9 % consider their homes suitable, and barrier‑free dwellings are scarce (e.g., 1.5 % of German homes meet improved accessibility criteria).

EU Legislative Framework

Key EU instruments influencing housing include the Energy Performance of Buildings Directive (EPBD), Energy Efficiency Directive (EED), the European Green Deal, the Renovation Wave, and the Renewable Energy Directive (RED III). Funding mechanisms such as InvestEU, the European Investment Bank, Cohesion Policy, the Recovery and Resilience Facility (RRF) and the Social Climate Fund aim to support affordable, sustainable renovation and new construction. However, transposition varies across Member States, leading to uneven impacts.

Policy Recommendations

The report proposes three pillars: (1) Strengthen legislation and standards—embed social targets in climate‑related building policies, clarify State‑aid rules, and protect tenant rights. (2) Mobilise financing at scale—expand the European Affordable Housing Initiative, leverage Cohesion Policy and RRF, and develop innovative tools such as revolving housing funds and social bonds. (3) Enhance implementation capacity—build local governance, establish an EU Housing Data Hub for harmonised indicators, and promote gender‑sensitive, inclusive planning. These actions aim to reduce the housing gap, improve affordability and ensure that sustainable housing benefits all European citizens.