22/12/2025
For the first time in history, the European Union has unveiled a strategy dedicated to access to housing, a sign that the crisis has become impossible to ignore. Across l’ok, soaring rents and property prices are disrupting daily life, and it is young people who are paying the highest price. This dysfunctional housing system is depriving an entire generation of affordable housing, delaying their independence and exacerbating social and economic inequalities across the continent.
Soaring prices and rents
Since 2010, the average price of housing in the EU has risen by almost 60%, with some countries, such as the Netherlands, seeing prices double. At the same time, rents have risen sharply in countries such as Estonia, Lithuania, Ireland and Hungary, with increases of over 100% in some regions. These trends have far outstripped wage growth, increasing the burden of housing costs on household budgets.
As a result, many young Europeans cannot afford to rent or buy a home on their own. Recent data show that around 30% of 25-34 year olds in the EU still live with their parents, with this figure reaching almost half in countries such as Spain, Portugal and Poland. Young tenants often spend up to a third of their income on housing, and in some cities, a large part of their salary goes towards renting a small flat.
What are the causes of the crisis?
Experts point to the financialisation of housing, where homes are seen as investment assets rather than places to live, as the main cause. Since the 1980s, many governments have given up on building social housing, allowing markets to drive up prices. High construction costs and a limited supply of affordable housing have only exacerbated the situation.
The lack of affordable housing does not only affect individuals. Cities facing extremely high costs find it more difficult to attract workers, particularly essential personnel such as nurses and teachers, which exacerbates overall economic and social difficulties.
New strategies, significant gaps
Aware of the crisis, the European Commission has launched its first affordable housing strategy, which aims to:
- Give governments more scope to build and subsidise affordable housing, including for the “missing middle class” who are not eligible for social housing.
- Regulate short-term rentals in highly strained property markets in order to free up more long-term housing.
- Encourage Member States to expand the housing supply and curb speculation.
This strategy offers tools that could alleviate some of the pressure on young Europeans. However, experts warn that the scale of the challenge is enormous. Without bold and sustained investment and rigorous implementation at national and local level, this strategy risks being more symbolic than transformative.
For young people across Europe, the stakes are high. Access to affordable and secure housing determines their ability to study, work, start a family and participate fully in society. As the EU attempts to navigate this crisis, the coming years will reveal whether these measures can truly reverse deeply entrenched inequalities, or whether the European housing system will continue to push a generation towards delayed independence and economic insecurity.