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

This study titled "Part 1: Mapping the housing needs in the EU, assessing the impacts of scarcity and providing an overview of relevant EU legislation" is published by the European Parliament and authored by Alina Makarevičienė, Greta Skubiejūtė, Agnė Zakaravičiūtė, and Justinas Jočys. It examines critical housing needs across the EU, highlighting issues related to affordability, accessibility, and quality.

The study reveals that housing scarcity poses significant social challenges, undermining inclusion and economic stability while limiting access to decent living conditions. Approximately 8.2% of Europeans spend over 40% of their income on housing, with disparities seen across Member States; for instance, Greece has the highest cost overburden rate at 28.9% while Cyprus reports only 2.4%.

The report maps housing needs across various territories, noting that Southern and Eastern Europe face high rates of overcrowding and deprivation. In contrast, Western and Northern Europe experience soaring prices and limited housing availability, with 16.9% of the EU population living in overcrowded conditions. The study emphasizes that urban areas are particularly affected by acute shortages, while rural regions struggle with deteriorating housing and investment issues.

Specific demographic groups are disproportionately affected by housing issues. Women, single parents, and youth experience heightened vulnerabilities, with single mothers facing the most significant challenges in securing stable housing. In 2024, 31.2% of women were identified as living in poverty after housing costs, compared to 28% of men. Furthermore, young adults are delaying independence due to affordability pressures, with the average age of leaving home reaching 26.2 years.

EU policies play a crucial role in shaping housing initiatives. The study reviews how legislation influences housing quality and accessibility, identifying significant gaps in legal definitions of adequate housing across Member States. It highlights that at least 18 countries lack clear legal frameworks, which complicates efforts to monitor and improve housing conditions.

The report analyzes factors affecting housing demand and supply, attributing challenges to rising construction costs, regulatory barriers, and land availability. The financialization of housing drives affordability issues, turning housing into a financial asset rather than a social good. The European Investment Bank estimates a shortfall of 925,000 housing units needed by 2025 across the EU.

Sustainable housing is critical for addressing these challenges. The study emphasizes the importance of integrating environmental and social sustainability in EU housing policies, calling for actions that ensure all residents have access to secure, adequate, and climate-resilient housing. It suggests strengthening legislation, mobilizing funding for social and affordable housing, and enhancing local capacities for effective implementation. In summary, the study provides a comprehensive overview of the housing crisis in the EU, revealing the urgent need for coordinated action to enhance housing quality, affordability, and sustainability across various demographic groups and regions.