The State of Housing in Europe 2025: Trends in a Nutshell

The document titled "The State of Housing in Europe 2025: Trends in a Nutshell" is published by Housing Europe, which serves as the European Federation of Public, Cooperative and Social Housing. The foreword is provided by Marco Corradi, the President of Housing Europe, highlighting the urgency of the structural housing crisis across Europe. This crisis has tangible impacts on people's lives, contributing to rising inequality and social exclusion.

Europe is facing a significant housing crisis characterized by a persistent gap between housing needs and supply. Factors such as population growth, urbanization, and migration are driving demand, while supply is hindered by rising costs and limited financing. Over 2.8 million people are currently on social housing waiting lists in France, with hundreds of thousands in Italy, Portugal, and Germany. The report indicates that countries like France need to build 518,000 homes annually, including 198,000 social homes, while Germany requires at least 400,000 homes, of which 140,000 should be social.

The report reveals that many countries, including France, Finland, and Germany, are experiencing declining construction rates due to escalating material costs and rising interest rates. Social housing production is under extreme pressure, with waiting lists indicating deep structural shortages. Despite these challenges, countries like Luxembourg, Hungary, and the Czech Republic are making strides in social housing supply through acquisitions and new construction initiatives.

Renovation efforts across Europe show mixed results. Some countries are advancing due to climate-driven policies, while others struggle with funding and economic constraints. For example, Austria and France are progressing with climate-related retrofits, whereas Germany and Ireland are facing setbacks in their renovation activities. Public, cooperative, and social housing providers continue to play a crucial role in the housing supply, maintaining significant shares even amid economic downturns.

The report discusses recent governance and regulatory developments across Europe, noting both progress and setbacks. Positive reforms have occurred in countries like Denmark, Ireland, and Portugal, aiming to improve housing affordability and increase stock. However, negative changes in Austria and Finland have raised concerns about stability and investment capacity.

The European Union is perceived as both a barrier and a lifeline for housing providers. While EU fiscal rules can limit investment capacity, EU funds and the potential for a European housing strategy offer opportunities for unlocking new housing supply. Many stakeholders are calling for more flexible EU support mechanisms tailored to cooperative and affordable housing, emphasizing the need for stable, long-term financing.

The report underscores the urgent need for a new housing paradigm that is strategic, inclusive, and forward-looking. The insights and data presented aim to guide policymakers in addressing the housing crisis effectively. Housing Europe, along with its 43,000 public, cooperative, and social housing providers, is poised to turn this vision into reality, aiming for sustainable and inclusive housing solutions across Europe.