Context and Overview
The document, published by the European Parliament, addresses the growing housing crisis in Europe, highlighting the significant rise in housing prices and rents across the continent, with a particular focus on the impact this has on affordability and sustainable living. As the issue affects many citizens, the European Commission has taken action to tackle the crisis, appointing its first-ever Commissioner for Energy and Housing and establishing a special committee to develop solutions for decent, sustainable, and affordable housing. 📈 Rising Housing Costs
In recent years, the cost of housing has surged dramatically, making it increasingly difficult for people, especially the younger generation, to find affordable living spaces. In 2024, it was reported that housing costs exceeded 40% of disposable income for 9.8% of households in urban areas and 6.3% in rural areas of the EU. Notably, Greece experienced the highest burden, with approximately 29% of urban residents spending over 40% of their income on housing, compared to just 2.3% in Cyprus. 📊 Trends in Housing Prices and Rents
Between 2015 and 2024, the average house prices in the EU rose by 53%, with Hungary, Lithuania, and Portugal experiencing the highest increases at 209.5%, 135%, and 124.4%, respectively. Renting has also become more expensive, with an average rise of 27.8% from 2010 to early 2025. Estonia, Lithuania, Hungary, and Ireland saw the most significant increases in rent prices, driven in part by the growth of short-term rentals that have reduced the availability of homes in the market. 🏗️ The Housing Shortage
The European Investment Bank identifies limited supply as a significant factor contributing to the housing crisis. Following the 2008 financial crisis, investment in new housing projects declined sharply, a trend exacerbated by the COVID-19 pandemic, which resulted in a further slowdown in residential construction. Since 2021, building permits for new residential buildings have decreased by over 20%, leading to a critical shortage of available housing and consequently driving up prices. 👪 Living Conditions Across Europe
As of July 2024, the Eurobarometer survey indicated that many Europeans are concerned about rising living costs, including housing. Over two-thirds of Europeans live in owner-occupied homes, with an average of 1.7 rooms per person and 2.3 people per household. Alarmingly, 17% of Europeans reside in overcrowded homes, lacking adequate space, while 33% live in homes with excess space. 👶 Impact on Young People
Housing costs heavily influence young people's decisions to move out of their parental homes. In 2024, the average age for leaving home across the EU was 26.2 years, varying from 21.4 years in Finland to 31.3 years in Croatia. Other factors affecting this decision include relationship status, job market conditions, and overall cost of living. 🏛️ EU Initiatives
In response to the housing crisis, the European Parliament has prioritized housing in its agenda, following the re-election of Ursula von der Leyen as President of the European Commission in July 2024. A special committee has been established to analyze the root causes of the crisis and propose solutions, with an initial mandate extended until July 2026. This initiative aims to ensure sustainable housing solutions that benefit all citizens across Europe.