AI-Generated Summary
Resource context (European Parliament / EPRS)
This resource is an informational article with infographics from the European Parliament, prepared by the European Parliament Research Service (EPRS). It compiles recent Eurostat, Eurobarometer, and European Investment Bank (EIB) figures to describe the scale of Europe’s housing affordability pressures and to summarise European Union actions taken in response.
How affordability pressure is measured
A common indicator used is the share of households whose housing costs exceed 40% of disposable income. Crossing this threshold is treated as a sign of severe housing-cost burden. Using this benchmark, the article reports that in 2024 the share of households above the 40% threshold was 9.8% in EU cities and 6.3% in rural areas.
Where the burden is most acute
The burden is uneven across member states. In 2024, 29% of people living in cities in Greece had housing costs above 40% of disposable income, while the equivalent figure cited for Cyprus was 2.3%. The article also notes that Greece recorded the highest average housing-cost share in the EU, with about 35.5% of household income used to cover housing costs.
House prices and rents: long-run increases
The resource highlights broad price growth over the last decade. Between 2015 and 2024, house prices in the EU increased by an average of 53%. The steepest reported increases over that period were in Hungary (+209.5%), Lithuania (+135%), and Portugal (+124.4%). Renting is also described as becoming more expensive: between 2010 and the first quarter of 2025, rent prices rose by 27.8% on average across the EU, with rises in all countries except Greece (reported at -11%). The largest rent increases cited include Estonia (+220%), Lithuania (+184%), Hungary (+124%), and Ireland (+115%).
Supply constraints and reduced construction activity
Limited supply is presented as a key driver of rising prices. The EIB is cited as pointing to shortages in new housing. The article links current constraints to reduced investment after the 2008 global financial crisis and to slower residential construction during the COVID-19 pandemic period. It reports that building permits for residential buildings have fallen by more than 20% since 2021, implying fewer new dwellings coming onto the market relative to demand.
Living conditions and public concern
Beyond prices, the article summarises Europe’s housing conditions. It states that over two-thirds of Europeans live in owner-occupied households, with an average of 1.7 rooms per person and an average household size of 2.3 people. It also reports that 17% of Europeans live in overcrowded homes according to the adequacy definition referenced, while 33% live in homes with more space than considered adequate. The wider economic context is reflected in a July 2024 Eurobarometer survey cited in the article, which found that rising prices, the cost of living, and the economic situation were main factors influencing voting in the European elections.
Impacts on young people’s housing transitions
The resource describes housing costs as one factor shaping decisions about leaving the parental home, alongside relationship status, labour-market conditions, cultural habits, and the general cost of living. It reports an EU average age of 26.2 years for leaving the parental household in 2024, with country variation ranging from 21.4 years in Finland to 31.3 years in Croatia.
EU institutional responses highlighted
On the policy side, the article notes that housing was presented as a priority for the European Commission’s new term in mid-2024, and that the Commission appointed its first Commissioner for Energy and Housing. It also describes the European Parliament’s establishment of a special committee on the housing crisis tasked with analysing root causes and proposing solutions for decent, sustainable, and affordable housing across Europe; the committee’s initial one-year mandate was extended by six months, continuing until 30 July 2026.