Housing crisis in Europe

Many major European cities currently have a massive problem in common: rent increases, which mainly hit low-income earners and those who lack a stable occupation. Even though a widely spread solution is usually to increase wages, the only real way to slow down and eventually fix the issue is to have a response from governments, which however remains rare.

Many factors are contributing to this result, including tourism, migration, low housing supply, and gentrification. All these trends are pushing rents up, especially in proportion to incomes. An EDJNet engaged in an investigation, led by EUrologus, analysed the reasons that lie behind this housing crisis, and what would be the feasible solutions for such a problem. The investigation collected data from 26 major European cities, showing how rare it is for residents with average salaries to spend less than a third of their income for rents.

Main findings:

  • Low- and middle-income earners are increasingly getting cut out of the housing market in big European cities. However, cities with higher nominal wages are still relatively better-off compared to those in which salaries are already low.
  • Vienna and Budapest are, respectively, one of the best-performing and the worst-performing cities in our database. The former has implemented strict control policies and extensive tenant support systems, whereas the latter has very limited housing policies, which resulted in a disastrous housing situation.
  • Low-income renters are among the categories that suffer the most from housing crisis, because high renting prices force them to live in cheaper, poorly connected neighborhoods.
  • Tourism and short-term rentals have a huge impact on raising the prices in the housing market. Platforms to offer and find short accommodations reduce the housing supply for people looking for long-term rental contracts, and regulation is still at the embryonic stage.
  • National and international migration also contribute to rising rents, because newcomers are more likely to be employed remotely or to have different sources of income, making it easier for them to afford higher renting prices.
  • In addition to these issues, low supply of houses must also be taken into consideration, as it comes as the result of gentrification of poorer neighborhoods and the several limitations to new constructions.

Stories

  • Renting in Belgrade: a burden for many

    Analysis of almost 1,600 advertisements shows that flats in Belgrade are unaffordable for low-income earners and a major obstacle for people on an average wage. Rents are very high.

    Teodora Ćurčić

    February 6, 2025

  • Europe’s rents are on the rise: Who’s hardest hit?

    Rising rents across major European cities are creating a housing crisis, disproportionately affecting low-income earners and those in unstable employment. Contributing factors include tourism, migration, low housing supply, and gentrification. Our investigation, led by EUrologus, highlights the need for policy changes to address these issues and ensure affordable housing for all.

    Kata Moravecz

    February 6, 2025

  • Is Sofia becoming just another faceless city?

    The cityscape of Bulgaria's capital has changed dramatically since 1989. But the building boom has paid scant regard to either regulations or the city's distinctive architectural heritage. And upcoming projects might well disfigure the city forever, as is shown on a 3D map created by Boyan Yurukov, an open-data activist.

    Hugo Dos Santos

    January 31, 2025

  • Discrimination in housing: the other face of Europe’s habitational crisis

    In Spain, the housing crisis has a particularly strong impact on religious and ethnic minorities, for whom access to housing is even more difficult. The systemic discrimination they suffer can cause serious damage, says Bianca Carrera.

    Bianca Carrera

    January 31, 2025

The data unit

Kata Moravecz (EUrologus, coordinator)
is an Hungarian EU research journalist and PhD candidate. She focuses on the European Union and democratic backsliding in EU members. She has been collaborating with EUrologus for several years now, drafting articles on EU-related issues.

EDJNet members which took part in this investigation:

Kata Moravecz

CINS – Center for Investigative Journalism of Serbia

Teodora Ćurčić

Maria Delaney, Alice Chambers

Laura Popa

Browse our data

Links to datasets:

Media uptakes

From EDJNet members: