Europe’s Housing Crisis: A Growing Challenge for Young People
The housing crisis in Europe is intensifying, with young people in Spain facing significant challenges in accessing affordable housing as prices continue to rise. Experts speaking to Euronews highlight that the lack of affordable housing has become a critical concern across the EU, particularly in countries like Spain. In major cities such as Barcelona and Madrid, residents are increasingly being priced out of the property market. Eurostat data reveals that in the EU’s largest cities, one in ten households spends over 40% of their income on rent, while in rural areas, this figure drops to 7%. Soaring prices, limited supply, and the rise of tourist rentals are exacerbating the problem, making it especially difficult for young people to find decent housing.
Spain’s Housing Struggles: Rising Prices and Limited Access
Between 2010 and the third quarter of 2024, house prices in the EU increased by 54%, while rents rose by 26%, according to Eurostat. Spain has been particularly hard hit, with rental prices reaching an all-time high in December 2024, averaging €13.5 per square meter. In Madrid, rents have surged by 15.4%, with city center rents now exceeding €2,000 per month, while in Barcelona, the boom in tourist flats has further strained the market. The situation is dire for young people, who are struggling to save for the initial investment of €20,000-40,000 required to access housing, an amount many find unattainable.
The Impact on Young People: delayed Independence and Financial Strain
The housing crisis is taking a significant toll on young people in the EU, who on average leave their parental homes at 26.3 years old. In Spain, this age is much higher, at 30.4 years, making it one of the highest in the bloc. Lawmakers emphasize that housing inequality is a major issue, with young people spending up to 70% of their income on rent or mortgage payments. This financial burden is compounded by low wages and limited savings, leaving many young people in a precarious position. The struggle to access housing is not just a financial challenge but also delays their independence and long-term stability.
Political Responses: Divergent Strategies in Spain
In Spain, political parties are proposing different solutions to address the housing crisis. The central government, led by the Socialist Party (PSOE), is implementing measures such as rent caps in severely affected areas. However, these efforts have met with mixed results, as seen in Catalonia where rents have decreased, but in Madrid, prices continue to rise. The opposition People’s Party (PP) defends Madrid’s approach, which includes building thousands of affordable rental homes and assisting young people in accessing the housing market. Experts advocate for increasing the supply of public housing, raising it to 9% of total housing in Madrid, and investing between 2% and 3% of GDP in housing solutions.
A Shared Challenge: The Broader European Context
The housing crisis is not confined to Spain; it is a structural issue across the EU. In 2021, the European Parliament recognized adequate housing as a fundamental human right, and in 2024, the European Commission prioritized housing, appointing a specific commissioner and establishing a committee to propose solutions. Despite these efforts, millions of citizens, especially young people, face an uncertain future as housing markets continue to spiral out of control. The crisis underscores the need for coordinated action and political will to address the systemic issues driving housing insecurity.
Conclusion: The Need for Multifaceted Solutions
The European housing crisis requires comprehensive and coordinated solutions that address its root causes. Experts stress the importance of increasing the supply of affordable housing, implementing rent controls, and investing in public housing. The crisis is not just about economics; it is a matter of social justice and equality. Ensuring access to affordable housing is essential to prevent a divided society where only the wealthy can own homes, while others are left behind. The path forward demands political commitment and a multifaceted approach to ensure that housing remains a right, not a privilege, for all Europeans.
