World Insights: Europe's housing crisis fuels social unrest-Xinhua

World Insights: Europe's housing crisis fuels social unrest

Source: Xinhua| 2026-10-20 19:38:30|Editor: huaxia

BRUSSELS, Oct. 20 (Xinhua) -- Protests have erupted in some European countries in recent weeks amid a housing crisis across Europe.

In Spain, demonstrators have pitched tents in central Madrid to protest soaring rents and evictions. Similar encampments have appeared in Portugal, where tens of thousands marched through Lisbon on Oct. 17, demanding relief from rising living costs and a deepening housing crisis. France, Italy and Belgium have also witnessed protests over a broader range of economic and social grievances.

While the protests have different causes, housing has emerged as a major source of discontent.

For Claudia, a young professional in Madrid, the Spanish capital, the problem is deeply personal. Despite holding two university degrees and working in the documentary industry, she still lives with her parents.

"It's simply impossible," she said when asked about living independently. Her father, she recalled, could rent a 70-square-meter apartment in Madrid for less than 100 euros a month when he was 18. For her generation, even education and employment offer no guarantee of similar independence.

Housing costs are a particular flashpoint in Spain and Portugal, but the squeeze is being felt across Europe.

A CRISIS BEYOND FOUR WALLS

In Budapest, finding a rental apartment can feel like a race against time. A woman searching for accommodation in the Hungarian capital told Xinhua that a property she had been interested in was rented out before she could even arrange a viewing.

Some landlords also impose strict requirements. "If you don't meet these requirements, you won't even get a chance to see the apartment," she said.

Between 2013 and 2024, house prices in nominal terms increased by more than 60 percent across the EU, growing faster than household income, with a number of member countries experiencing average increases of more than 220 percent, the Council of the EU said on Oct. 19. More than 1 million people across the bloc are estimated to be homeless.

Young people are particularly vulnerable. Eurostat data show that 26.9 percent of young people aged 15-29 in the EU lived in overcrowded households in 2025. The overcrowding rate for young people was 10.1 percentage points higher than for the total population.

In Spain, average monthly rent reached 1,176 euros (1,317 U.S. dollars), equivalent to 98.7 percent of the average monthly wage of a young person, according to the Spanish Youth Council.

The consequences have extended to education.

"We are facing the risk of a new form of social selection," Matthias Anbuhl, chair of the executive board of the German National Association for Student Affairs, said. "It is no longer simply talent and academic interest that determine which university someone can attend, but whether they can actually afford the rent in that city."

In France, only 45 percent of people aged 18 to 30 lived independently in 2025, according to the country's National Institute for Youth and Popular Education.

French economist Maxime Sbaihi pointed out that high housing costs and inadequate living space can discourage young adults from having children, potentially delaying parenthood and leading to smaller families.

Housing costs can also put better jobs out of reach. An International Monetary Fund study warned that declining housing affordability was restricting labor mobility and economic opportunity, making it harder for workers to move to areas offering better jobs.

SUPPLY LAGS BEHIND

For Edin, who works in Sarajevo, the capital of Bosnia and Herzegovina, homeownership has become an increasingly distant prospect. He said property prices in the city had almost doubled over the past four years.

Across Europe, housing supply has struggled to keep pace with demand, particularly in major cities.

Germany completed just 206,600 homes in 2025, down 18 percent from the previous year and the lowest number since 2012. The average time between building permits and completion rose from 20 months in 2020 to 27 months in 2025, according to Germany's Federal Statistical Office. The German Tenants' Association estimated a nationwide shortage of around 1.4 million homes.

Spain faces a similarly severe imbalance. Bank of Spain Deputy Governor Soledad Nunez estimated that the cumulative housing shortage since 2021 had reached approximately 755,000 units. She projected a further shortfall of about 300,000 units between 2026 and 2028.

Construction costs are one obstacle. In Poland, producer prices for new residential buildings rose 36 percent between 2021 and the third quarter of 2025, compared with an EU average of 24 percent, according to the European Commission.

Building permits are another obstacle. The Dutch government's coalition agreement says lengthy approval procedures and overlapping regulations mean new housing developments can take years to build.

Labor shortages and higher financing costs also make it harder to expand housing supply.

NO QUICK FIX

European governments are under pressure to make housing more affordable for renters and buyers alike. Many are searching for ways to offer relief now while tackling a shortage that has built up over years.

Increasing supply is central to the Dutch government's response. Its coalition agreement acknowledges that the Netherlands has repeatedly missed its target of building 100,000 homes a year and promises a stronger central government role in planning and construction.

Making better use of existing buildings offers another way to ease housing shortages. But many vacant properties are not fit to live in. More than half of vacant dwellings in Portugal, about 350,000 units, are thought to require medium-scale renovations to become inhabitable, according to the OECD.

For those at greatest risk, the immediate priority is keeping a roof overhead. A recommendation adopted by the Council of the EU on Oct. 19 called for emergency rental assistance and earlier intervention to prevent homelessness, alongside investment in new and renovated affordable housing.

For European governments facing public anger, the test is whether their policies bring an affordable home within reach. ■

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