{"id":37376,"date":"2026-03-25T08:59:07","date_gmt":"2026-03-25T05:59:07","guid":{"rendered":"https:\/\/bnbnews.gr\/?p=37376"},"modified":"2026-03-25T00:03:38","modified_gmt":"2026-03-24T21:03:38","slug":"the-first-report-on-the-housing-crisis-in-the-european-union-has-been-approved","status":"publish","type":"post","link":"https:\/\/bnbnews.gr\/en\/news\/37376\/the-first-report-on-the-housing-crisis-in-the-european-union-has-been-approved\/","title":{"rendered":"The first report on the housing crisis in the European Union has been approved"},"content":{"rendered":"
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With a broad majority (367 votes in favor, 166 against), the European Parliament adopted its first comprehensive report on the housing crisis in the European Union, marking a policy shift: from treating housing as a purely national issue to pursuing a more coordinated European approach.<\/p>\n

The report calls for joint action at EU level, aiming to reduce housing costs, increase housing supply, and protect citizens from precarious living conditions. It represents an intervention that recognizes housing not only as a social good, but also as a critical factor for economic stability and competitiveness.<\/p>\n

Soaring prices and post-pandemic deterioration<\/strong><\/h2>\n

The housing crisis in Europe has deep roots. It began after the 2008 global financial crisis but worsened dramatically following the 2020 pandemic.<\/p>\n

The data is striking:<\/p>\n

    \n
  • House prices have increased by 60.5% since 2015<\/li>\n
  • Rents have risen by approximately 28%<\/li>\n
  • In 2025, the homeownership rate for ages 24\u201335 fell by 6% compared to 2005<\/li>\n
  • 1 in 10 Europeans is unable to afford rent<\/li>\n<\/ul>\n

    The problem is more acute in major cities, where the house price-to-income ratio often exceeds 8\u201310 annual incomes, and in some capitals reaches as high as 12\u201315 years.<\/p>\n

    At the same time, tenants now spend 30%\u201340% of their income on housing, exceeding affordability thresholds.<\/p>\n

    Structural causes: Supply, costs, and financing<\/strong><\/h2>\n

    The crisis is not cyclical, but the result of structural weaknesses:<\/p>\n

    1. Insufficient housing supply<\/strong>
    Demand is rising due to urbanization, labor mobility within the EU, and the increase in smaller households.<\/p>\n

    At the same time, construction activity falls significantly short of needs. The European Investment Bank points to a shortage of millions of homes.<\/p>\n

    2. Rising construction costs<\/strong><\/p>\n

      \n
    • Increased land prices<\/li>\n
    • Higher costs for materials and labor<\/li>\n
    • Strict urban planning regulations<\/li>\n
    • Lengthy permitting processes<\/li>\n<\/ul>\n

      3. Monetary policy and interest rates<\/strong>
      The period of low interest rates (2015\u20132022) fueled price increases. However, since 2022, the European Central Bank has raised rates up to 4%, making mortgages significantly more expensive.<\/p>\n

      As a result, more people remain in the rental market, intensifying pressure on rents.<\/p>\n

      4. Investment activity and short-term rentals<\/strong>
      In cities such as Madrid and Barcelona, foreign buyers account for a significant share of transactions, institutional investors play a dominant role, and the growth of short-term rentals reduces housing availability.<\/p>\n

      Social impact: From delayed independence to homelessness<\/strong><\/h3>\n

      The crisis is now affecting broader segments of society:<\/p>\n

        \n
      • Young people delay leaving the family home<\/li>\n
      • Nearly 48% of people aged 18\u201334 live with roommates<\/li>\n
      • Social housing is insufficient, with long waiting lists<\/li>\n
      • Homelessness has increased by 30% since 2019<\/li>\n<\/ul>\n

        Today, around 1.28% of Europeans live in precarious housing conditions or without permanent accommodation.<\/p>\n

        The European response: Funding and strategic interventions<\/strong><\/h3>\n

        Although housing policy remains a national competence, the EU is seeking to shape a support framework through funding tools and strategic initiatives.<\/p>\n

        Key pillars:<\/strong><\/p>\n

        1. European Affordable Housing Plan (2025)<\/strong>
        Includes measures to increase housing supply, attract investment, support vulnerable groups, and promote reforms at national level.<\/p>\n

        2. Financial instruments<\/strong><\/p>\n

          \n
        • \u20ac43 billion for the period 2021\u20132027<\/li>\n
        • An additional \u20ac10 billion for 2026\u20132027<\/li>\n
        • \u20ac15.1 billion for social housing through the Recovery Fund<\/li>\n
        • \u20ac100 billion for energy renovations by 2030<\/li>\n<\/ul>\n

          3. Green transition and energy efficiency<\/strong>
          Initiatives such as the Renovation Wave and the Energy Performance of Buildings Directive aim to reduce energy costs and energy poverty.<\/p>\n

          4. Improving the construction sector<\/strong>
          The new strategy focuses on reducing bureaucracy, digitalization, faster permitting, and modern construction methods.<\/p>\n

          Political challenges and limits of the EU<\/strong><\/h3>\n

          EU intervention has clear limits:<\/p>\n

            \n
          • It cannot impose a unified housing policy<\/li>\n
          • Decisions on rents, taxation, and urban planning remain with member states<\/li>\n<\/ul>\n

            However, as experts point out, the crisis can no longer be addressed solely at the national level. It requires multi-level cooperation between the EU, governments, and local authorities.<\/p>\n

            What is at stake: Economy, society, and trust in Europe<\/strong><\/h3>\n

            The housing crisis directly affects:<\/p>\n

              \n
            • Labor mobility<\/li>\n
            • The functioning of the single market<\/li>\n
            • Economic growth<\/li>\n
            • Social cohesion<\/li>\n<\/ul>\n

              At the same time, it carries political risks. If European initiatives fail to deliver tangible results, Euroscepticism may intensify.<\/p>\n

              Conclusion<\/strong><\/h3>\n

              The European Parliament\u2019s report represents an important political step in recognizing the housing crisis as a European issue with both economic and social dimensions.<\/p>\n

              However, the success of the measures will depend on:<\/p>\n

                \n
              • The willingness of member states<\/li>\n
              • The speed of reform implementation<\/li>\n
              • The effective use of European funds<\/li>\n<\/ul>\n

                At a time when access to housing is becoming increasingly difficult, Europe is called upon to prove that it can deliver solutions to one of its citizens\u2019 most pressing challenges.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n

                <\/div>","protected":false},"excerpt":{"rendered":"

                With a broad majority (367 votes in favor, 166 against), the European Parliament adopted its first comprehensive report on the housing crisis in the European Union, marking a policy shift: from treating housing as a purely national issue to pursuing a more coordinated European approach. The report calls for joint action at EU level, aiming<\/p>\n","protected":false},"author":4,"featured_media":37373,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[506],"tags":[1485],"class_list":["post-37376","post","type-post","status-publish","format-standard","has-post-thumbnail","category-news","tag-housing-crisis"],"_bunyad_layout_template":null,"_bunyad_layout_spacious":null,"_bunyad_sponsor_name":null,"_bunyad_sponsor_logo":null,"_bunyad_sponsor_url":null,"_bunyad_sub_title":null,"_yoast_wpseo_metadesc":"Housing crisis in the EU: key findings, causes and measures in the first European Parliament report on housing affordability and supply.","_yoast_wpseo_focuskw":null,"_yoast_wpseo_title":"Housing crisis in the EU: First European Parliament report approved","_bunyad_layout_style":null,"yoast_head":"\nThe first report on 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