Housing is at the top of the concerns of Portuguese society, with houses for sale becoming increasingly expensive and rents rising, making it difficult for those with low or medium salaries to access a decent home. But this is not only a problem in Portugal; it extends across the entire European continent. In this context, Brussels wants to act as a beacon in resolving the housing access crisis in the European Union (EU), proposing a set of solutions to increase the supply of public and private housing, as well as to support access to housing for the most vulnerable groups, such as young people. This is precisely what the most recent report of the Special Committee on the Housing Crisis reveals, which idealista/news has carefully reviewed.

The roots of the housing access crisis in Europe

Brussels wants to catalyze solutions for the housing crisis
Solutions for housing in Europe

  • Increasing housing supply: more land and fiscal simplification

  • Ensuring public financing and facilitating private investment in housing

  • Supporting housing demand: from young people to the homeless

  • Data helps create effective housing policies

The roots of the housing access crisis in Europe

“Access to housing in the EU has become one of the great challenges of our time and is one of the main concerns of our citizens,” admits the European Parliament (EP) in the recent draft resolution on the EU housing crisis, signed by Spanish MEP Borja Giménez Larraz.

The numbers speak for themselves. In the last 15 years, houses sold in the European Union have become almost 60% more expensive, while rents have increased by almost 30%, according to the latest Eurostat data. In Portugal, this rise in housing costs was even greater: prices of homes for sale more than doubled, and rents increased by almost 50%.

This scenario increases the weight of housing expenses on families’ monthly income, making housing unaffordable, especially for young people and families with low and medium incomes. UN-Habitat, a United Nations program, considers housing affordable when monthly net housing expenses do not exceed 30% of a household’s total income.

The increase in house prices in Europe has obvious social effects: delays in young people leaving their parents’ homes, postponement of life decisions (such as starting a family), and an incentive for emigration, point out the MEPs.

“When housing becomes unaffordable, the impact is disproportionately felt by young people and undermines family stability.” – Special Committee on the EU Housing Crisis

The root of the problem, stresses the Special Committee on the EU Housing Crisis, lies in the “limited supply of housing, both private and public, resulting from insufficient construction and lack of investment in recent decades.” This whole scenario is worsened by lengthy licensing processes, “excessive tax burden” on housing, a shortage of skilled labor in companies, and rising construction costs, further aggravated by the pandemic and the war in Ukraine.

In addition, illegal occupation of homes, lengthy litigation in eviction cases, and legal uncertainty ultimately drive away owners and investors, contributing even further to the reduction of housing available on the market, adds the document published last week, which will be discussed in the Special Committee this Thursday, September 25.