Unaffordable and inadequate housing in Europe

The report titled "Unaffordable and inadequate housing in Europe" was published by Eurofound, an agency of the European Union established to provide knowledge in the area of social, employment, and work-related policies. Authors Hans Dubois and Sanna Nivakoski, along with contributions from various experts, focus on the pressing issues of housing affordability and adequacy across Europe. The report examines the detrimental impact of housing problems on individuals and society, emphasizing the importance of adequate housing as a fundamental human right.

The report highlights that unaffordable housing is a significant concern within the EU, leading to homelessness, housing insecurity, financial strain, and inadequate living conditions. This situation disproportionately affects young people, preventing them from leaving their parental homes. Between 2007 and 2019, the age at which at least 50% of individuals moved out increased from 26 to 28 years. Almost 700,000 people were estimated to be homeless in the EU in 2021, with many more at risk of eviction or living in overcrowded conditions.

Housing costs have risen considerably, with tenants experiencing a 23% increase from 2010 to 2019, compared to an 8% rise for homeowners. The report indicates that 60% of individuals spending over 40% of their income on housing report difficulties making ends meet. Conversely, many homeowners, while facing fewer issues, still encounter challenges, particularly in post-communist countries where between 10% and 24% of owners without a mortgage are at risk of poverty.

The report identifies groups particularly vulnerable to housing issues, including low-income households, single parents, and ethnic minorities. It notes that individuals in the bottom half of the income distribution are less satisfied with their housing conditions compared to those in higher income brackets. Additionally, people with disabilities face unique barriers to accessing suitable housing.

The COVID-19 pandemic exacerbated existing housing issues, with increased teleworking trends transforming homes into workplaces. The crisis heightened the need for adequate housing solutions, particularly for those displaced by the influx of refugees due to geopolitical events like the war in Ukraine. Rising utility costs further strained household budgets, leading to an anticipated increase in payment difficulties for many.

The report recommends scaling up Housing First policies to provide unconditional housing for the homeless and those at risk of eviction. It emphasizes the need for automatic support mechanisms triggered by eviction notices and calls for better protection for private tenants. Moreover, it suggests enhancing accessibility to housing benefits and social housing to ensure vulnerable populations receive the support they need.

Eurofound’s comprehensive research underscores the urgent need for effective housing policies that prioritize affordability and adequacy. The findings advocate for coordinated efforts across EU Member States to address housing challenges and improve living conditions, highlighting the importance of sustainable housing as a crucial aspect of social protection and resilience in Europe.