Short rentals and record prices: all the numbers of the EU housing crisis and country comparison

Italy also has strong legislation to protect tenants, designed to provide them with long-term security. Leases are generally long-term, with standard contracts lasting four years, renewable for another four. If a landlord wishes to terminate a lease at the end of the initial four years, it must provide six months' notice and meet specific legal conditions, such as the need to use the property for personal use or significant renovations.

Tenants are also protected from arbitrary evictions and the process of evicting tenants who do not pay their rent is lengthy and often requires court intervention, which can last several months. Vulnerable groups, such as elderly tenants or low-income households, receive additional protections, making the enforcement of evictions even more difficult in some cases.

France has seen a slight decline in the proportion of homeowners: according to data from the Institut national de la statistique et des études économiques (Insee), a French public agency, the proportion of households owning their own home has fallen from 57.7 per cent in 2013 to 57.2 per cent in 2023. Despite this trend, six out of ten households still own their home, a proportion that had been on the rise since 1983 but has shown signs of declining since 2014.

To combat the housing burden, the French government has provided subsidies such as 'Apl' (Personalised Housing Assistance) to cover part of the rent. In addition, to facilitate access to property, the zero-interest loan for young buyers was recently reintroduced, albeit with extremely restrictive access criteria. On the rent regulation front, the ALUR Act of 2015 introduced a cap on rents in some areas, but the effectiveness of the measure has been limited by the lack of systematic controls.

In Austria, the rate of home ownership is relatively low, with only 48% of residents owning a home. According to Statistics Austria, 36.2 per cent of Austrians live in owner-occupied dwellings, while 11.8 per cent own flats. In contrast, almost half of the population, or 43%, reside in rented accommodation. A large proportion of these tenants live in municipal or cooperative dwellings (23.7%), while 19.3% opt for private or commercial rentals. A further 9.1% say they reside in alternative housing solutions, such as rent-free houses with relatives.

In 2024, the Austrian government launched a EUR 1 billion initiative to stimulate new housing construction. Despite a building boom in the past decade, mainly driven by private projects, subsidised construction has slowed down, affecting the availability of affordable housing. However, rising interest rates from 2022 onwards have put the brakes on expansion, and government funds earmarked to boost the sector are only slowly reaching building sites.

In the Czech Republic, 72.7 per cent of households live in their own home, a figure in line with the local tradition of home ownership. However, the country is grappling with a housing crisis exacerbated by a shortage of new construction, increased investment in temporary rental housing - often through platforms such as Airbnb - and rising energy and mortgage costs. This combination has led to rising rental and house prices, creating inflationary pressures.

Former minister Ivan Bartoš of the Pirate Party had proposed a law to support social housing, offering subsidised financing to municipalities for the construction of affordable housing and simplifying building permit procedures. However, following a political crisis, Bartoš was removed from office, and the law was not introduced in parliament. The cost of housing accounts for 30.3 per cent of the income of households living in rented accommodation, which is more than double that of owner-occupied households (14 per cent), highlighting the high incidence of housing costs on the incomes of the weakest groups.

In Greece, home ownership is currently around 72.8 per cent, but the country is facing a significant crisis in the sector. 47.3 per cent of households say they have difficulty covering the costs of rent or mortgage payments, with the percentage rising to 79.1 per cent for low-income households. The concept of the 'right to housing' is enshrined in the Greek Constitution, but its implementation remains a challenge: responsibility for housing coverage has often fallen on households rather than the state.

The Greek state responded by introducing partial measures to protect tenants from rising costs. However, regulation of the rental market remains limited, with a price cap that has not yet been implemented. This has left room for rent prices to rise in the most affected urban areas, increasing the housing insecurity of the most vulnerable social groups.

In Romania, the affordability of buying a house is among the highest in Europe, with 95 per cent of the population owning a home, the highest rate in the EU. Despite this, many Romanians are hesitant to go ahead with the purchase, hoping for a reduction in interest rates or a drop in real estate prices. According to Ciprian Dascălu, chief economist at Erste Bank, the Romanian real estate market is relatively affordable compared to other countries. For example, in Bucharest it takes about 6.5 years of salary to buy a house, while in Cluj-Napoca it takes 11, much lower figures than in countries such as China or Central Europe.

Price trends vary considerably between Romania's regions. Bucharest and Timișoara have lower prices than the average, while cities such as Cluj-Napoca and Brașov are more expensive. A quarter of real estate transactions are concentrated in the capital, while a further 28% take place in the main regional centres. In some areas, such as Giurgiu and Teleorman, real estate transactions are minimal, accounting for less than 0.6 per cent of national sales.

The Romanian real estate market is characterised by relatively moderate transaction costs, between 4.4 % and 10.2 % for buyers and between 3 % and 6 % for sellers. However, significant challenges persist, particularly in less developed areas where access to credit and housing availability remain limited.

In Lithuania, housing affordability is a major concern for 35 per cent of the population, with 66 per cent of tenants saying they live in rented accommodation as their only financially accessible option. A study by the Lithuanian Real Estate Development Association found that more than half of the population considers the supply of affordable housing to be insufficient.

Young people between the ages of 18 and 35 are most concerned about the cost of rent and mortgages, while for Lithuanians over the age of 46, fears are focused on the cost of living in general. This landscape indicates a growing inequality between generations and a strong demand for action to improve housing affordability, especially in the most populated urban areas.

While European countries continue to address the issue of housing affordability, there is a clear lack of a uniform approach. The policies adopted often reflect the cultural traditions and economic structure of each country. In countries such as Italy and the Czech Republic, ownership is still predominant, although difficulties in the rental market are growing. In Greece and France, challenges are related to the high cost of renting and the limited availability of social housing. In countries such as Lithuania, the housing crisis is particularly felt by the younger generations, who see renting as the only sustainable alternative.

Solutions remain fragmented, with some governments attempting to encourage new housing construction, while others focus on incentives for home ownership or rent subsidies. What clearly emerges is the need for a more coordinated and long-term response to address common challenges across Europe.

*This article is part of the Pulse project and was written by Silvia Martelli (Il Sole 24 Ore, Italy), Dan Popa (Hotnews.ro, Romania), Ieva Kniukštienė (Delphi, Lithuania,) Dina Daskalopoulou (EFSYN, Greece), Matěj Moravanský (Deník Referendum, Czech Republic), and Franziska Zoidl and Martin Putschögl (DER STANDARD, Austria).