Europe's housing crisis has hit a breaking point. Wages cannot keep pace with soaring costs, and EU-wide solutions keep running into national rules. Ask the Euronews AI chatbot how the EU aims to make housing more affordable.
While the Commission wants to invest more than €43 billion by 2027, housing is becoming a structural crisis.
ADVERTISEMENT
ADVERTISEMENT
House prices increased by 60.5%, and rents rose by 28.8% compared to 2015. House ownership in 2024 was 68%, down from 69% in 2023 and 70% in 2020. Today, Luxembourg records the highest price-per-square metre ratio, at €8.000-€9.000. Monthly rent ranges from €800 in Budapest to €2.500 in Amsterdam.
Residents in major European cities spend more than 40% of their income on housing, while one in ten cannot pay rent on time. In low-income cities like Barcelona and Rome, an average of €1.300 out of a €1.900 net income goes towards rent, making saving impossible.
Today, 30% of 25 to 35-year-olds still live with their parents, affecting employment opportunities and delaying household formation. Experts point the finger at the financialization of houses, the rise in short-term rentals, and the limited housing supply.
Last year, the EU launched its first European Affordable Housing Plan. With key actions rolling out in 2026, the plan wants to increase supply, boost investments, and tackle short-term rentals.
A first-ever EU summit of heads of state or government on housing will be held this year to deliver a coordinated solution across the bloc.
Curious how the EU’s Affordable Housing Plan could benefit you? Ask the Euronews AI chatbot!