The EU’s Struggle to Tackle Europe’s Housing Crisis

Housing affordability is a burning issue across Europe, sparking debate and taking center stage in recent elections. From Ireland to Amsterdam, voters are increasingly concerned about the lack of affordable housing options. While the European Union has limited legal power in this area, it’s recognizing the need for a more proactive approach, especially to remain relevant to younger generations.

Statistics paint a stark picture: between 2015 and 2023, average house prices across the EU rose by 48%. Ireland experienced a sharp increase of 69% – well above the European average. Portugal (+105%), the Netherlands (+83%), and Belgium (+86%) also witnessed significant price hikes, with Hungary leading the pack at a staggering 172% increase. In contrast, France saw a more moderate rise of 31%, while Spain experienced a 47% increase and Italy a modest 8% rise.

The Growing Impact on Young People

The consequences of rising housing costs are particularly acute for young people. More and more are delaying leaving their parental homes, contributing to a trend of extended family living arrangements.

The average age for Europeans leaving their parents’ home is 26. However, in Ireland, it’s 28 – the highest in Spain, Italy, and Bulgaria, where young adults remain at home until age 30. At the younger end of the spectrum, Sweden and Finland are leading the way, with people leaving home at 21.

Tentative Steps: The EU’s Response

Concerned by the growing crisis, the EU has taken tentative steps towards addressing the issue. Notably, for the first time, a dedicated Housing Commissioner, Dan Jørgensen from Denmark, has been appointed. The European Parliament has also established a special housing committee tasked with examining solutions and formulating recommendations by 2026, coinciding with Ireland’s EU presidency.

While initial optimism surrounded the potential for a comprehensive EU housing plan, a leaked draft of the European Commission’s 2025 Work Programme hinted at a more limited approach. Although the draft initially promised an “affordable housing strategy,” this commitment was notably absent in the final document presented to the European Parliament.

Responding to MEPs’ questions about the language changes, Commissioner Maroš Šefčovič asserted that the Commission will engage stakeholders in developing an affordable housing scheme for 2024. This initiative, he claimed, will have a “real impact on the ground.”

FINE GAEL MEP Regina Doherty, a vice chair of the Parliament’s Housing Committee, emphasized the need for a concrete plan and outlined potential measures, including streamlining European bureaucracy, enhancing funding from EU social funds for housing construction, and relaxing financing rules for builders. She highlighted the detrimental impact of current rules on smaller and medium-sized builders, stifling new construction efforts.

Labour MEP Aodhán Ó Ríordáin suggested extending EU Consumer Protection laws to encompass tenants’ rights. This, he argued, could facilitate a pan-EU no-fault eviction ban, a common practice in some European nations.

He further emphasized the need for increased social democratic solutions within the EU as a means of addressing the housing crisis and mitigating the growing influence of extreme right-wing movements.

Sinn Féin believes that easing EU fiscal rules, implemented after the financial crisis to curb government spending, could empower member states to invest more heavily in housing construction. They draw a parallel to the Commission’s proposed relaxation of fiscal rules for defence spending and question why similar flexibility isn’t extended to housing.

Fianna Fáil’s MEP Billy Kelleher believes that resolving the housing crisis is a matter of urgency, arguing that societal stability and the future of the European Union itself are at stake. He warns that failing to address the issue could fuel socio-economic unrest and the rise of extremism.

What’s Next?

The EU’s approach to tackling the housing crisis is still evolving. As political pressure mounts, it remains to be seen how concrete and effective measures will be implemented across the bloc.

Stay informed about developments in the housing policy debate and join the conversation about affordable housing solutions for Europe.