Housing prices in the EU: rising prices and rents, the debate on housing policies
Eurostat data confirm the growth trend in Europe and Italy, while the government evaluates possible incentives for young people in the next budget.
Quick Look
- House prices and rents continue to grow in the EU (+4.7% and +3% in the second quarter of 2026).
- In Italy, the government evaluates measures for young people, while the market records a quarterly decline of 1.1% compared to an annual increase of 3.3%.
AI-generated summary
Why It Matters
House prices and rents in the EU are constantly increasing. The Italian government is evaluating support measures for the purchase of a first home for those under 36.
Homes increasingly expensive in the EU. Both for the rent and for the purchase price. The topic, which has already been on the table in Brussels for some time, is being addressed by the governments of the countries of the Old Continent with various recipes. In Italy in particular, the Housing Plan has been talked about for some time. But, with an eye to the next budget, targeted interventions for young people are also being envisaged ("concrete help for those looking for a home, with a flat rate of 5% for long-term rentals", asks Maurizio Lupi today). Also because in the meantime the Spanish cousins are grappling with an unprecedented protest against the high cost of housing with camps in various cities and Pedro Sanchez's government at risk.
Meanwhile, rents and prices of houses for sale in the EU are growing inexorably. And sales are increasing even if the phenomenon, in times of high interest rates, is destined to decline significantly. According to Eurostat, in the second quarter of 2026, house prices in the EU increased by 4.7%, while rents increased by 3% compared to the second quarter of 2025. The Italian figure is in line with the EU one.
Compared to the first quarter of 2026, house prices increased by 1.2% and rents by 0.7%. Also according to Eurostat, in 2025, home sales in the EU increased in most countries for which data are available, compared to 2024.
In Italy, the residential market meanwhile closes the third quarter of 2026 with a drop in prices of 1.1%, to an average of 2,031 euros per square meter. On an annual basis, the balance remains positive, with 3.3% more than in September 2025; while on a monthly level the prices remain stable, says idealista, the real estate portal.
"We need quality training, a safe and stable job, an adequate salary, a house at a fair price. Everything that pre-establishes the conditions for starting a family", said Prime Minister Giorgia Meloni recently. "A measure that could be studied, financial resources permitting, are incentives for the purchase of the first home for under-36s", anticipated the deputy minister of Economy, Maurizio Leo.
Open Questions
- What will be the financial coverage for incentives under 36?
- How will the protest in Spain evolve?
