The EU's housing crisis
Europe faces a crisis driven by rising house prices and increasing housing costs. The EU is working towards a plan for more affordable housing.
The cost of housing is rising
House prices in the EU have increased by up to 60% on average since 2015, with some member states seeing rises of over 200%, and rent prices and energy costs have also continued to climb.
At the same time, household incomes have not kept pace, leaving many Europeans struggling to cover their housing expenses. EU countries and regions are affected differently, but the broad impact of the crisis makes it a shared concern for all Europeans.
Today, housing takes up almost one-fifth of the average EU household’s income, and around one in ten people report being unable to pay their rent or mortgage on time. In Europe’s major cities, pressure is even higher: one in ten urban residents spends more than 40% of their income on housing.
These developments limit the options for prospective buyers and renters alike and make affordability a major economic and social concern across the Union.
Apartments in major European city centres are increasingly unaffordable
The following graph shows the projected share of salary that will be spent on rent in 2025 across major European cities. A 100% ratio indicates that the entire salary is needed to pay rent, while any value exceeding 100% means rent surpasses the average salary. It is generally considered optimal to pay up to 30% of your salary on rent.
The graph represents the percentage of salary expected to be spent on rent in 2025 across various major European cities.
Lisbon shows the highest expected percentage of salary spent on rent at 116%.
A significant proportion of salary goes towards rent in other cities as well, with 74% in both Barcelona and Madrid.
Milan and Rome are also notable, with 72% and 65%, respectively.
An uneven housing landscape
Housing conditions vary considerably across the EU due to different market structures, legal frameworks and financial systems. Some member states have markets dominated by homeowners, while others rely heavily on private rental or subsidised housing.
About two thirds of Europeans own their home, but this share differs widely between countries. At opposite ends of the spectrum, more than 90% of Romanians own a home, compared to just over 10% of the population in the Netherlands. At the same time, while more than a fifth of French people rely on subsidised rent, this only applies to 0.6% of Swedes.
These structural differences shape how countries experience rising interest rates, demographic pressures and demand in metropolitan areas. In some states, tight rental markets drive up prices; in others, limited construction and strong demand have pushed homeownership further out of reach.
The balance between apartments and houses also varies within member states: nearly 72% of urban residents live in apartments, while 82% of rural residents live in houses. Europe’s urban population is projected to reach 83% by 2050, so housing pressures are expected to intensify, particularly in fast-growing cities where availability and affordability are already under strain.
Housing status in EU countries: owning versus renting
The following graph compares housing statuses across European countries, showing differences in homeownership and rental rates. The data highlights the higher homeownership rates in Eastern European countries such as Romania, Bulgaria or Slovakia, contrasted with higher rental rates in countries such as Austria, Germany and France.
The graph displays housing status across different European countries, showing the percentage of the population in each country based on their housing situation in four categories:
Owner, no outstanding mortgage or housing loan: this represents the percentage of people who own their homes outright, without any mortgage or loan. For example, Romania has the highest proportion at 92.8%.
Owner, with mortgage or loan: this category represents those who own their homes but have an outstanding mortgage or loan. In the Netherlands, 58% of home owners have a mortgage.
Tenant, rent at market price: this shows the percentage of people renting at market price. In Germany 46.9% of people pay market price, compared to 2.4% in Bulgaria.
Tenant, rent at reduced price or free: this category shows the percentage of people paying reduced rent or living rent-free. For example, this applies to 21.9% of people in France and only 0.6% in Sweden.
The aim is to illustrate the differences in homeownership versus renting across the EU, highlighting higher homeownership rates in Eastern European countries such as Romania and Bulgaria compared to higher rental rates in countries such as Croatia and Hungary.
An EU plan for affordable housing
Housing policy is a national responsibility, as the EU has no competence in this area. Regional and local authorities often have a key role in addressing the housing crisis, as they are responsible for implementing housing policies, managing spatial planning and zoning regulations, as well as providing affordable housing solutions that address community-specific needs.
However, the consequences of the housing crisis extend across Europe’s economic and social landscape. Rising housing costs affect labour mobility, limit access to jobs and education, and contribute to inequalities between regions and social groups. These cross-border effects give the issue clear relevance at EU level.
Recognising this, EU leaders discussed the housing situation at the October 2025 European Council and invited the European Commission to present a plan for affordable housing that supports member states’ efforts in the area. The Commission's European affordable housing plan is provisionally scheduled for publication in December 2025.
The Danish presidency has already presented conclusions on the forthcoming plan, which were endorsed by 26 member states. In particular, they highlighted four key areas of focus: financing, construction and sustainability, planning, and social inclusion.
On 29 June 2026, the Council called on policymakers to consider the interplay between housing needs and demographic trends, such as population ageing, shrinking household sizes and rural-to-urban migration. Attention was drawn to the multifaceted and intergenerational nature of Europe’s housing crisis and its impact on aspects such as cohesion, sustainability and competitiveness.
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Last review: 29 June 2026