Resource context and contributors
“The State of Housing in Europe 2023” is a report produced by Housing Europe (Housing Europe Observatory), with contributions from a network of member organisations and partners across 17 countries. The publication brings together evidence from 22 public, cooperative, and social housing providers, complemented by European and international data sources. The authors listed for this resource include Gerald Kössl, Gerlinde Gutheil-Knopp-Kirchwald, Sara Van den Eynde, Ana Franco, Thierry Martin, Martin Hanak, Solveig Råberg Tingey, and Kristīne Vasļljeva.
Housing affordability: rents, prices, and financial stress
Across the European Union, housing costs have risen faster than incomes. From 2010 to Q4 2022, average EU rents increased by 19% while house prices rose by 47%. The report notes that Q4 2022 marked the first EU-level decline in house prices since 2015, while rents continued to increase. Higher interest rates and inflation are highlighted as key factors squeezing household budgets and reducing affordability for both new buyers and existing mortgage holders.
Social, cooperative, and public housing: stock and demand pressures
The report situates social and affordable housing as a stabilising factor during the cost-of-living crisis because rents are typically below market levels, especially in high-demand urban areas. At the same time, demand has grown sharply: for example, applications for social housing in France reached 2.4 million households (16% higher than 2016 and 7% higher than 2021). The report also points to shortages in affordable supply, with construction and renovation slowdowns expected to translate into tighter markets in the following two to three years.
Energy transition and the renovation challenge
A core focus is how housing providers contribute to a “fair energy transition” while maintaining affordability and supply. The report emphasises that energy performance data are uneven across countries and Energy Performance Certificates are not directly comparable. Nevertheless, available evidence suggests social housing often performs better than the private sector. In France, 46% of social housing units are in EPC categories A–C versus 25% for the overall housing stock, but 18% of social housing is still rated E–G. Renovating the worst-performing French social housing stock (around 1.8 million dwellings) by 2034 is estimated to require raising annual renovation investment from about €5 billion to at least €7.5 billion.
Household energy, emissions, and renewable heat
At EU level, households account for 27% of final energy consumption and 21% of total greenhouse gas emissions. The report highlights the energy mix for EU households: natural gas (31.7%) and electricity (24.8%) are largest shares, with renewables at 20.3%. Renewable heat for heating and cooling varies widely across Member States (e.g., 5.2% in Ireland versus 68.6% in Sweden in 2021), underlining the different starting points for decarbonising homes.
Responses and emerging models: support measures and energy communities
Housing providers have deployed crisis responses such as limiting rent indexation, setting up solidarity funds, advancing payments to energy suppliers, and offering tenant coaching on energy use and access to subsidies. The report also describes growing interest in “energy communities” and collective self-consumption models, but notes regulatory barriers and investment risks. Examples include a large solar park model in Sweden (with shares linked to energy output) and cooperative roll-outs of rooftop solar in Flanders (Belgium), intended to lower residents’ energy costs.
Policy implications for sustainable, affordable housing
The report frames the sector’s task as balancing three goals—availability, affordability, and sustainability—amid higher construction costs, rising financing costs, and increasing social need. It argues that meeting climate objectives while preventing housing exclusion requires coordinated investment and enabling EU and national frameworks that reflect on-the-ground realities across Europe.