Who in the EU is investing in affordable housing: Greece is again among the outsiders

Europe is experiencing a massive housing crisis. Since 2010, average housing prices in countries EU grew by 55.4%and rental rates are at 26.7%significantly outstripping income growth for many social groups.

According to European Commission at the end of 2025, at Portugal housing prices exceed their fair value by approximately 25%which makes it one of the most overheated real estate markets weight.

The crisis is particularly acute youthespecially between the ages of 18 to 29 years old. According to the latest report Eurofoundit is this age group that most often experiences delays in paying rent and utilities.

Young people want to live in major citieswhere jobs are concentrated, but it is there that the gap between demand and supply of housing is most pronounced. As a result, many are forced stay with parents or relatives.

As the report highlights, this often leads to housing overcrowding. In 2024, the highest rates of overcrowding were recorded in Romania (41%), Latvia (39%) And Bulgaria (34%)while the lowest are at Cyprus (2%), Malta (4%) and in Netherlands (5%).

Even those young people who manage to live on their own spend significantly larger share of income for housing and are much more likely to find themselves in a situation housing congestionthan other age groups.

Which countries are investing in housing? In Bulgaria, Ireland, Poland, Portugal and Spain, as well as in parts of Austria and Italy, rent is so expensive that renting a standard two-room apartment requires more than 80% of average income.

In 2024, in the EU as a whole, housing investment accounted for 5.3% of GDP. Became a leader Cypruswho invested 8% GDPfollowed by Italy (6.8%) And Germany (6.2%).

At the opposite end of the scale were Poland (2.2%), Latvia (2.5%) And Greece (2.6%)which makes the latter one of the countries with lowest level of investment in housing weight.

In response to the crisis European Commission introduced the first Affordable Housing Planproviding for measures to identify speculative practices and restore fairness in the real estate market.

The EU plans to mobilize at least 11.5 billion euros from the multi-year budget, supplementing them with those already allocated 43 billion euros for social, affordable and sustainable housing. National and regional financial institutions are expected to invest up to 375 billion euros by 2029.

The shortage of affordable housing is directly related to inability to live independently, limiting career choicedeterioration mental health And postponing having childrenwhich turns the housing crisis into a long-term social problem.

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