EditRenting a home: an unattainable goal for young Europeans
In coastal regions of Portugal and Spain and in some parts of Bulgaria a single full-time income doesn't secure а starter home
Young adults are bearing the brunt of Europe’s housing crisis, as soaring property prices and rents continue to outpace income growth across the EU, according to new research by the European social policy agency Eurofound.
Average house prices in the EU have risen by 55.4% since 2010, while rents have increased by 26.7% over the same period, the study shows. Although these figures are already significant, affordability pressures are far more acute in certain Member States, in large urban centres and among younger age groups.
Eurofound’s report, “Foundational challenges: The housing struggles of Europe’s youth”, highlights a worsening affordability crisis across the continent, with young people particularly exposed due to lower and often more precarious earnings at the start of their careers.
As a result, many young Europeans are finding it increasingly difficult to live independently, struggling to rent or buy homes in areas where jobs and educational opportunities are concentrated. In Bulgaria, Ireland, Poland, Portugal and Spain, as well as parts of Austria and Italy, more than 80% of a young adult’s median wage would be needed to rent a standard two-room flat in many locations.
In coastal regions of Portugal and Spain, and in some parts of Bulgaria, this figure exceeds 100%, meaning that a single full-time income is no longer sufficient for a young person to secure even a starter home. The problem is particularly severe in popular tourist destinations, where long-term rentals compete with short-term lets and second homes.
Ireland stands out as an extreme case, with rental costs exceeding 60% of wages in all regions and surpassing 80% in some, effectively requiring two incomes for a household to afford a modest flat.
Bulgaria’s urban boom
While tourism is the driving force for rental increase in Portuga and Spain, in Bulgaria, which is one of the EU’s poorest states, property prices also surged sharply over the past four years. The are driven by rising real incomes in the capital Sofia and several other large cities where labour demand is strongest. Over the past two years, the price boom has been further fuelled by expectations surrounding the country’s accession to the eurozone, which officially took place on 1 January 2026, according to research by EUalive.
These financial pressures are having tangible consequences for young people’s life choices, particularly when it comes to leaving the parental home. Across several Member States, the average age at which young adults move out continues to rise.
In Ireland, the share of 25–34-year-olds living with their parents jumped from 23% to 40% between 2018 and 2023. By contrast, Hungary recorded the largest decline over the same period, from 43% to 31%, followed by Czechia and Lithuania.
Students are also increasingly dependent on the family home. In Ireland, the proportion of students living with their parents rose sharply from 73% to 93% between 2013 and 2023.
Eurofound notes that young people spend a significantly larger share of their income on housing than older age groups and are more likely to be overburdened by housing costs. They are also more likely to live in lower-quality dwellings, as very little rental housing in urban areas is affordable for someone earning a median wage.
This has led to a growing mismatch between preferred and actual living arrangements. Survey data from Czechia, the Netherlands, Spain and Sweden show that far more young adults live with friends, relatives or parents than they would choose to, with negative consequences including constrained career choices, delayed family formation and adverse effects on mental health.
A growing EU priority
With the European Commission recently assigning housing its own dedicated portfolio, the issue has moved higher up the EU’s political agenda. Driven in part by initiatives from Portugal and Spain, tackling runaway property prices is increasingly seen as a shared European challenge.
In December, the Commission pledged decisive action to address what it described as one of the bloc’s most serious social and economic crises: the lack of affordable, quality housing for millions of Europeans. Over the past decade, house prices in the EU have risen by more than 60%, while rents have increased by over 20%, placing severe pressure on households and, in some countries, fuelling support for far-right and anti-European parties.
So far, the EU has mobilised €43 billion in housing-related investments, with further funding planned under the next long-term EU budget. A pan-European investment platform is also being prepared in cooperation with the European Investment Bank. The Commission plans to invest in student and social housing and to support member states in implementing the “Housing First” approach.
Eurofound argues that governments should prioritise supply-side measures to expand the stock of affordable starter homes, rather than relying primarily on demand-side subsidies or tax incentives. The report also calls for fiscal policies that treat renting and owning more equally.
One largely untapped solution lies in the renovation of vacant and underused buildings, which could help ease housing shortages in many regions. Without decisive action, the report concludes, Europe’s housing crisis risks undermining household formation and damaging the long-term well-being and prospects of an entire generation.
Caption: Activists demonstrate alongside the National Student Union (LSVb), FNV Young and United, and the Housing Association for better housing policy in Utrecht, The Netherlands, 17 October 2025. They are demanding better living conditions, rent reductions, less power for landlords, and more social housing. EPA/KOEN VAN WEEL
Updated: January 9, 2026 - 07:13
