Overview of the Report
The article is published by Anadolu Agency, a Turkish state‑run news organization that aggregates and distributes international news. It presents findings from global housing experts, including UN special rapporteur Balakrishnan Rajagopal and Julieta Perucca of The Shift, an NGO focused on housing rights. The piece compiles data from the European Union, United Nations, Harvard University, and national statistics to illustrate how investment‑driven housing markets are reducing affordability across Europe and beyond.
Rising Rent Pressures in Europe
In the EU’s largest cities, one in ten households spends more than 40 % of their income on rent. Between 2010 and 2024, house prices across the bloc increased by over 50 %, while rents rose by roughly 25 %. In France, housing prices jumped 88 % from 1996 to 2023, outpacing wage growth of just 13 %. Similar trends are observed in the United Kingdom, Germany, and the Netherlands, where high‑cost housing markets are linked to growing homelessness and “hidden homelessness.”
Global Investment and Housing as an Asset
Experts note that housing is increasingly treated as a financial asset. Real estate is valued globally at about $304 trillion, attracting investors who buy, sell, leave properties vacant, or rent them short‑term for profit. This financialisation pushes prices up and squeezes low‑ and middle‑income households, making homes unaffordable and driving evictions.
Key Data from the United States and Other Regions
In the United States, median single‑family home prices rose nearly 50 % from 2019 to 2024, far outpacing median income growth. Homelessness rose sharply, with a record 771,480 people experiencing homelessness on a single night in 2024. In Mexico City, rental prices have surged over 110 % in some neighborhoods within three years. Hong Kong remains the world’s least affordable market, with average home prices exceeding 14 times median household income.
Policy Models That Preserve Affordability
Rajagopal highlights Vienna and Singapore as examples where long‑term public ownership, land‑price regulation, and extensive social housing keep homes affordable despite high demand. The Netherlands’ 2012 abolition of its housing ministry is cited as a misstep; the ministry was reinstated in 2023 to address mounting homelessness and affordability pressures.
Calls for Sustainable Housing Solutions
Perucca urges large‑scale social housing investment, community land trusts, stronger tenant protections, and eviction‑prevention teams. She emphasizes “housing first” approaches that secure permanent homes before tackling other social issues, noting that such models reduce chronic homelessness when combined with broader market reforms. Both experts reject migration as a cause of housing shortages, identifying global capital flows into housing as the primary driver.
Implications for a Pan‑European Audience
For policymakers and advocates focused on sustainable housing, the article underscores that market‑driven investment is eroding affordability across Europe. Data show that without regulatory interventions—such as land‑price controls, public ownership, and robust social‑housing programs—housing markets will continue to marginalise vulnerable households, increase homelessness, and undermine social cohesion. The evidence calls for coordinated European strategies that balance investment with the right to adequate, affordable housing.