Who's most affected by Europe's housing crisis?

This resource is an Euronews article by Loredana Dumitru and Inês Trindade Pereira examining who is most affected by Europe’s lack of affordable housing, with a focus on young adults and the wider social impacts.

The article describes a sharp deterioration in affordability since 2010. Across the EU, average house sale prices increased by 55.4% while rents rose by 26.7% over the same period, trends that have outpaced income growth for many groups. 🇵🇹 Market pressures and overvaluation signals The piece highlights Portugal as an example of intensified market pressure. By the end of 2025, the European Commission estimated that housing prices in Portugal were, on average, about 25% above their fair value, which the Commission described as exceeding other overvalued property markets in the EU.

According to Eurofound, young people aged 18–29 are especially exposed to the crisis. They are more likely to fall behind on paying housing costs and utilities than other age groups. The article links this vulnerability to the life stage when many people try to leave the parental home, establish stable employment, and build financial independence.

The article notes that many young adults seek housing in cities, where job opportunities are concentrated. However, urban areas are also where the mismatch between housing demand and supply is often most severe. As a result, young people may end up in living arrangements they would not otherwise choose, including staying with parents or relatives.

A key consequence discussed is overcrowding, driven by limited access to affordable, adequate homes. In 2024, the highest overcrowding rates were recorded in Romania (41%), Latvia (39%), and Bulgaria (34%). The lowest rates were seen in Cyprus (2%), Malta (4%), and the Netherlands (5%).

Even when young people do manage to live independently, the article reports that they typically spend a larger share of their income on housing and are more likely to be overburdened by housing costs compared with older age groups.

The article points to both national investment patterns and EU initiatives. Eurostat data cited indicates that in 2024 the EU invested 5.3% of GDP in housing. Cyprus invested the most at 8% of GDP, followed by Italy at 6.8% and Germany at 6.2%. Poland invested the least at 2.2%, with Latvia and Greece also low at 2.5% and 2.6% respectively.

In several countries—Bulgaria, Ireland, Poland, Portugal, and Spain, plus parts of Austria and Italy—the rental market is described as so unaffordable that renting a standard two-room apartment can require more than 80% of the median wage in many areas. The European Commission’s Affordable Housing Plan is described as aiming to address speculative behaviour and improve fairness in residential markets, with at least €11.5 billion to be mobilised from the EU’s multiannual budget on top of €43 billion already committed to social, affordable, and sustainable housing. National and regional promotional banks and institutions are expected to invest €375 billion by 2029.

Finally, the article links unmet housing preferences to wider social and economic outcomes, including delayed independent living, constraints on career choices, negative impacts on mental health, and postponement of having children.