Europe’s Housing Crisis: A Continent-Wide Struggle

Across Europe, the dream of homeownership is fading for many as prices soar. This crisis, marked by unaffordable housing and rising rents, is reshaping communities and fueling social unrest. It’s a complex issue with consequences far beyond individual households.

The Rising Cost of Shelter

The cost of housing impacts people deeply. A home offers refuge and a space for personal expression. Buying or renting a house reflects aspirations, yet the financial burden is becoming insurmountable for many. This is not a local problem, but a widespread trend across Europe.

Between 2015 and 2023, housing prices in the EU jumped almost 50% on average. Meanwhile, rent costs climbed by 18% from 2010 to 2022, according to the European Parliament. This rapid increase forces people to reconsider their futures.

Specific City Struggles

In Lisbon, Agustín Cocola-Gant highlights how policy shifts after the 2008 financial crisis incentivized wealthy foreigners to purchase second homes and short-term rentals. This has edged out many locals. Some families in Portugal now rent individual rooms instead of entire flats.

The situation in Amsterdam presents another set of challenges, as described by Amber Howard. Older residents benefit from secure social housing, while newcomers and younger people are confined to the costly and uncertain private housing sector. Social housing availability has decreased, while private housing has expanded.

Similarly, in Budapest, as Csaba Jelinek explains, the sale of social housing following the Cold War favored private ownership, pushing up prices. This impacts younger generations the most. In contrast, Vienna provides a possible model of housing affordability, thanks to its stable social housing stock.

The Bigger Picture

Housing policies in Europe often reward those who invest in homes at the expense of those who live in them. This is especially evident where institutional investors are prominent, as explored by Tim White. The imbalance fuels inequality and resentment.

Property has become a primary driver of inequality across Europe. The resulting anger is being exploited by far-right politicians. As the European Commissioner for Jobs and Social Rights, Nicolas Schmit, observed, “The housing problem divides our societies and it may be a risk for our democracies.”

One in five adults in the EU struggle to pay their housing costs, leaving many at risk of poverty, according to a 2024 report (European Commission, 2024).

Potential Solutions

While housing policies are generally set nationally, the European Union can still create frameworks and offer financial support. In 2024, member states’ housing ministers agreed on a declaration calling for a “new deal” on affordable and social housing.

There are solutions, and political will exists. Hopefully, ongoing discussions will help those facing housing affordability challenges realize they are not alone.