The study conducted by a team from the Technical University of Vienna (TU Wien) is one of the most comprehensive studies on housing affordability in Europe. The analysis of over 22 million advertisements allowed the creation of detailed maps that show the geography of the housing crisis at the level of individual municipalities. These data show that as many as 44 percent of Europeans live in places where one third of the average monthly salary can buy less than 50 square meters of living space on credit. This is the area equivalent to a small one-room apartment or studio apartment.
Even more disturbing are the data on the rental market. As much as 39 percent Europeans cannot afford to rent an apartment of this size, which means that almost two fifths of the continent's inhabitants cannot afford even basic housing conditions.
It's worst in big cities
The study indicates that the most difficult situation is in large cities and agglomerations, where real estate prices are growing much faster than residents' incomes. Particularly affected are the areas of Paris, Berlin and Madrid, where the average person can only afford to buy a very small apartment.
The results show that over 70 percent Europeans live in regions where even a 30-year mortgage allows you to purchase a maximum of 75 square meters. This is a clear signal that for many families the dream of having their own spacious apartment is becoming less and less realistic.
Tourist regions
Not only large cities struggle with the problem of housing availability. Tourist regions such as coastlines and mountainous areas are also becoming less and less accessible to local residents. An increase in the number of investors purchasing properties for short-term rental and a growing number of so-called second homes cause property prices in these places to go up quickly, displacing the local population.
Who is affected by the crisis?
The authors of the study point out that the housing crisis particularly affects people who are just entering the real estate market and those who often change their place of residence for personal or professional reasons. They are the ones who most often have to deal with high prices and limited availability of apartments, especially in capitals, large cities, coastal and mountainous regions.
The study emphasized that the problem of housing availability has two main sources: on the one hand, rising real estate prices, and on the other, insufficient income growth. Experts indicate that effective solutions must take into account both of these aspects. Although the housing crisis affects almost all surveyed countries, the level of housing availability varies greatly. In some countries, such as Portugal, Poland or the Netherlands, the situation is particularly difficult, both for people wanting to buy or rent an apartment.
Interestingly, even in countries with higher middle incomes, such as Germany or France, residents of large cities have to take into account very high costs of purchasing or renting real estate. Researchers point out that high prices in city centers gradually increase prices in neighboring regions, which further deepens the problem.
Challenges
Experts emphasize that the greatest challenges currently face the authorities of metropolises and tourist regions. This is where the most decisive actions are needed, which can stop further price increases and improve the availability of apartments for people with average incomes. Possible solutions include: regulations on the short-term rental market and restrictions on the purchase of second homes by investors. Such actions could help curb price increases and increase the supply of housing available to local communities.
The authors of the study admit that their analysis is based on offer prices, not transaction prices, which may slightly distort the actual market picture. Moreover, data for entire communes do not reflect differences between individual districts, and the study does not take into account barriers such as the need for an own contribution when purchasing an apartment. Despite these limitations, the published results are an important warning signal for politicians and the public. Experts emphasize that without decisive action, the housing crisis in Europe may intensify, leading to further housing exclusion and deepening social inequalities.
