How bad is Europe's youth housing crisis?

The generational housing crisis is the focus of the most recent episode of Eurofound Talks, as Mary McCaughey sits down with Marie Hyland, a lead author of the newly released report, Foundational challenges: The housing struggles of Europe’s youth. The discussion highlights the pervasive challenge of rising property prices across the European Union which have surged by over 55% since 2010, while rents have followed a similarly aggressive upward trajectory.

This economic landscape has created an unaffordable environment for young adults, who are increasingly caught between stagnant wages and a market that demands an ever-greater share of their income. The research reveals that the crisis is most acute in the rental sector, where affordability has become an unattainable concept.

Results show that in countries such as Bulgaria, Ireland, Poland, Portugal, and Spain, renting a standard two-room apartment can require more than 80% of a young adult’s median wage. In coastal regions of Spain and Portugal, this figure frequently exceeds 100%, effectively mandating a dual-income household just to secure a modest starter flat. The impact of tourist-driven short-term lets further depletes the stock of viable long-term housing.

These financial pressures are fundamentally altering the life trajectories of Europe’s youth. The age at which young adults leave the parental home continues to rise; in Ireland, the proportion of 25–34-year-olds living with parents has jumped from 23% to 40% in just five years. This delayed independence is a structural barrier that inhibits career mobility and postpones family formation.

Even those who manage to secure independent housing often find themselves overburdened by costs, frequently inhabiting poor-quality dwellings that consume the vast majority of their disposable income. The episode explores how EU institutions can help alleviate the situation, particularly as the European Commission has appointed its first dedicated Commissioner for Energy and Housing.

The discussion suggests a shift toward supply-side solutions, including the renovation of vacant buildings and the promotion of tenure neutrality. This episode is essential listening for those seeking to understand the shortcomings of the current housing market for young people, and what can be done about it.

The podcast is available for streaming on Spotify and Apple Podcasts, as well as on our dedicated page.