Young Europeans are facing a growing housing crisis that threatens their independence, security and future prospects. Widespread increases in house prices and a shortage of available rental accommodation, exacerbated by gentrification and growing economic instability, are making it increasingly difficult for the younger generation to find decent housing. If not tackled decisively, this problem could jeopardise social cohesion, birth rates and the continent’s sustainable development.
Housing costs in Europe have risen sharply in recent years. Between 2015 and 2023, house prices in the European Union will increase by an average of 48%. This increase has particularly affected young people, who often find themselves in precarious employment situations or with insufficient income to cover housing costs. The lack of affordable housing forces many to stay in their parents’ homes or to live in overcrowded and unsafe conditions.
European initiatives to tackle the emergency
In response to this emergency, the EU has launched several initiatives to tackle the housing crisis. In 2025, the European Commission set up a new working group on housing to develop and implement a European plan for affordable housing. This working group, chaired by Energy and Housing Commissioner Dan Jørgensen, aims to coordinate European policies to unlock public and private investment in sustainable and affordable housing.
In parallel, the European Investment Bank (EIB) has announced an action plan to support housing with an investment of around €10 billion over the next two years. This plan includes the construction of new housing, the renovation of existing housing and the implementation of innovative solutions to improve the energy efficiency of buildings, affecting a total of 1.5 million homes.
Recommendations for a truly inclusive plan
FEANTSA, the European network of organisations working with homeless people, has welcomed the Commission’s commitment but urges that the most vulnerable groups are not neglected. The concept of ‘accessibility’ is often vague and there is a risk that new policies will only benefit middle-income groups, leaving out those living in extreme poverty.
According to FEANTSA, there are more than 1.3 million homeless people in Europe, including 400,000 children. The report argues that accessible housing policies must prioritise the needs of those excluded from the market, both as a preventive measure and as a stable solution to the problem of homelessness.
In its report, FEANTSA estimates an annual shortfall of €57 billion in public investment in affordable housing in the EU and makes 13 recommendations to the European Commission. These include:
- Prioritise non-speculative, public and cooperative projects.
- Support proven programmes such as Housing First.
- Address the problem of short-term rentals and inefficient use of real estate assets.
- Exclude social housing expenditure from the calculation of the public deficit.
Finally, the report expresses doubts about excessive reliance on private capital: the goal of guaranteeing high returns to investors risks conflicting with the urgent need to provide housing for people on low incomes.
A strategic challenge for Europe
The housing crisis is a growing obstacle to growth and social cohesion in Europe. Joint initiatives by the European Commission and the EIB aim to reverse this trend, but their effectiveness will depend on the ability to include everyone, starting with the most disadvantaged. It is a complex and urgent challenge. It requires a joint commitment from European institutions, national governments and civil society organisations. Only through specific policies, adequate investment and an inclusive approach will it be possible to guarantee all young Europeans the fundamental right to safe and affordable housing.
