A new study by Eurostat has revealed the scale of Europe’s housing crisis, showing that many young people are spending up to 80% of their income on rent.
According to the findings, 10% of people aged 15–29 across the European Union are considered overburdened by housing costs, meaning a large share of their income goes on rent or housing expenses. Across all age groups, the figure stands at 8%.
The problem is particularly severe in some countries. In Denmark, 29% of young people are affected by housing cost burdens, compared with 15% of the total population. In the Netherlands, 15% of young people face housing stress, more than double the rate seen across all age groups.
Europe needs millions of new homes
The European Commission estimates that the EU needs to build more than two million homes every year to tackle the crisis. At present, only about 1.6 million homes are being delivered annually, leaving a shortfall of around 650,000 homes each year.
Between 2013 and 2024, house prices across the EU rose by over 60%, far outpacing household income growth. Rents also increased sharply, by around 20%. At the same time, residential building permits have fallen by 22% since 2021, further tightening supply. The report also notes that around 20% of existing homes across the EU remain unoccupied.
Mental health impact
Experts warn that housing insecurity is having a serious impact on mental health, particularly among younger generations. Constant financial stress linked to unaffordable rent is associated with anxiety, depression and reduced creativity, and can hinder long-term personal and professional development.
Specialists are calling for new and innovative mental health support models, tailored for people living in unstable housing or under severe financial pressure from rent. They argue that addressing Europe’s housing shortage is not just an economic issue, but a public health priority affecting an entire generation.