Press release - 8 January 2026 10:00

Over 80% of median wage required to rent two-room apartment in Bulgaria, Ireland, Poland, Portugal, Spain

Young adults are disproportionately affected by soaring prices and rents, with average EU sale prices and rents increasing by 55.4% and 26.7% respectively since 2010, often far outpacing income growth. These averages mask even more severe problems in certain Member States, in larger cities and for younger cohorts according to Eurofound’s new report, Foundational challenges: The housing struggles of Europe’s youth which reveals an exacerbation of the housing affordability crisis across Europe.

Eurofound’s research underscores the particular impact on young people, who are typically navigating lower and often more precarious employment earnings. As a result, they are finding it increasingly difficult to achieve independent adult living, struggling to rent or purchase a home in areas where opportunities are concentrated.

The challenge is most acute in the rental sector. In Bulgaria, Ireland, Poland, Portugal, and Spain, and parts of Austria and Italy, the degree of unaffordability means that more than 80% of a young adult's median wage would be required to rent a standard two-room apartment in many areas.

Crucially, in coastal areas of Portugal and Spain, and some regions of Bulgaria, this proportion climbs to over 100%, effectively requiring more than one full-time income for a young person to secure a starter flat. This crisis is compounded in popular tourist destinations where the regular rental market competes with short-term lets and secondary housing, such as holiday homes.

Furthermore, Ireland stands out with rental costs above 60% of wages in all regions, rising to over 80% in some, effectively requiring two incomes for a family to afford a starter flat.

These financial pressures have tangible consequences on the decision to leave the parental home. The average age at which young adults leave the home continues to rise across several Member States. In Ireland, the proportion of 25–34-year-olds living with their parents jumped by 17 percentage points between 2018 and 2023, from 23% to 40%. Conversely, Hungary saw the largest drop in the same period (43% to 31%), followed by Czechia and Lithuania.

Students are also increasingly reliant on the family home: the share of students living with their parents increased most dramatically in Ireland, rising from 73% to 93% between 2013 and 2023.

Beyond cost, young people who manage to achieve independent living face continued challenges: they spend notably more of their incomes on housing and are more likely to be overburdened with housing costs compared with older age groups, yet they tend to live in poorer-quality dwellings. The report notes that across the EU, very little property available to rent in urban areas is affordable for a young person on a median wage.

The result is significant mismatches between actual and preferred living arrangements. Survey data from Czechia, the Netherlands, Spain, and Sweden show that far more young adults are living with friends, relatives, or parents than would choose to do so, leading to negative outcomes such an inability to follow a chosen career path, delaying starting a family, and adverse impacts on mental health.

With the European Commission recently assigning housing its own dedicated portfolio, the report identifies several policy areas for action. It stresses the importance of understanding both quantitative data on housing challenges and qualitative data on young people's preferences.

The report suggests that governments can focus on supply-side solutions to increase the stock of affordable starter homes rather than demand-side monetary and tax benefits. It also calls for policymakers to ensure tenure neutrality in fiscal policy, treating owning and renting equally.

A critical untapped resource lies in the existing stock of vacant and underused buildings, which could be renovated to alleviate housing shortages. The report concludes that the housing crisis is impeding household formation and negatively impacting the well-being and future prospects of an entire generation.