Resource Overview
The study “Place‑based determinants of housing prices in Europe” is a joint research effort by the European Commission’s Joint Research Centre (JRC) and a team of academics including Filipe Batista e Silva and colleagues from ESPON, the Technical University of Vienna and several European universities. It analyses how local factors shape house‑price levels across 78 000 municipalities in the EU‑27, using econometric models on data collected from 2024‑2025 web‑scraped listings, census statistics, Eurostat, TomTom, Ookla and AirDNA.
Key Price Drivers
Across the EU, house prices are higher where housing construction has lagged behind population and household growth, and where land availability is limited. Additional positive correlates include higher household income, strong transport and digital accessibility, proximity to coastlines, intense tourism activity and a larger share of short‑term rentals (STRs). The study notes that STRs account for about 1.2 % of all dwellings, but their impact on prices is markedly stronger in cities and tourist hotspots.
Supply‑Demand Imbalance
The analysis shows a persistent mismatch: while the EU’s overall population grew by 1.4 % between 2015 and 2024, households increased faster (especially in cities), yet conventional dwelling construction rose only 9 % in both urban and rural areas. Unoccupied dwellings grew by 21.2 %, reaching roughly 20 % of the housing stock in 2021, highlighting structural disincentives that constrain supply elasticity and contribute to price pressure.
Accessibility and Infrastructure
Municipalities with better transport links, higher digital connectivity, and larger shares of working‑age residents consistently exhibit higher asking prices per square metre. Potential accessibility is especially significant for rental markets, while actual accessibility influences sales prices. These findings underline the importance of infrastructure investment for sustainable urban development.
Tourism and Short‑Term Rentals
Higher tourism intensity and a larger proportion of STRs are linked to elevated house prices. STRs are concentrated in coastal and city centres, with some EU cities showing up to 20 % of dwellings linked to STR activity. Despite this concentration, STRs represent a modest fraction of total housing stock, suggesting limited EU‑wide impact but notable local effects.
Unoccupied Housing Stock
A substantial share of dwellings is not used as primary residence, ranging from 17.8 % to 19.7 % nationally, with higher rates in rural areas. Unoccupied homes, including seasonal or vacant units, constrain overall supply and may reflect higher renovation costs or regulatory barriers. Improving statistics to differentiate permanent vacancy from seasonal use is highlighted as a policy need.
Territorial Differences
The study confirms that territorial regimes matter: land scarcity, housing supply growth, and demand‑supply mismatches influence prices similarly across territories, but the strength of associations varies. Cities experience stronger price responses to land scarcity and STR prevalence, while rural areas show weaker links.
Policy Implications for Sustainable Housing
The authors recommend addressing structural supply constraints, enhancing data on unoccupied housing, and adopting place‑based management of STRs to balance tourism benefits with housing affordability. A targeted, local‑level approach is deemed essential for sustainable housing strategies, ensuring that interventions reflect the diverse conditions across European municipalities.
Research Context
The findings are based on a comprehensive dataset covering 78 000 municipalities after excluding Greece and Estonia due to data gaps. The econometric analysis incorporates spatial spillover effects, acknowledging that price dynamics in one area can influence neighboring locations. The study is currently under peer review and will be published as a scientific paper, providing a robust evidence base for EU housing policy.