Future is Blue
Addressing the housing crisis in Europe
May 28, 2024
In this discussion, Hans Dubois, a Senior Research Manager at Eurofound, joins housing expert Carlos Carnicero Urabayen to tackle Europe’s housing crisis. They delve into the staggering impact of soaring rents on young adults, forcing many to live with parents. The conversation highlights the effectiveness of various housing policies and innovative solutions like the 'housing first' model. They also emphasize the need for greater investment from EU member states to enhance housing affordability and reduce homelessness, fostering a more secure future for the youth.
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Quick takeaways
- The dramatic rise in housing costs over the past two decades has created significant affordability challenges, particularly affecting young people's ability to achieve independence.
- While various EU policies aim to tackle housing issues, their success varies due to limited authority at the EU level and reliance on member states for implementation.
Deep dives
Rising Unaffordability in Europe
Housing affordability is a critical issue across the European Union, with disposable income growth lagging significantly behind rising rents and property prices. Over the last two decades, while household incomes saw modest increases, housing costs surged, creating a crisis that affects various population groups differently. Young individuals, in particular, face severe challenges in achieving independence, with many unable to move out of their parental homes due to exorbitant market prices. The situation highlights a broader societal concern, as inadequate housing conditions lead to negative consequences for health, productivity, and environmental sustainability.
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