# European housing affordability crisis > Live situation record from CLSTR: https://clstr.news/situations/european-housing-affordability-crisis > Updated: 2026-09-22T20:49:04.000Z. Sources: 25. Developments: 2. Europe is experiencing a widespread housing crisis marked by a growing gap between property costs and household incomes. Research indicates that at least 70% of Europeans live in areas where average salaries are insufficient to purchase a home larger than 75 square meters, even with a 30-year mortgage. Financial strain varies by region; for instance, rent in Portugal can consume nearly 85% of wages, while in Spain and Italy, it exceeds 47%. This crisis is further characterized by declining homeownership rates among younger generations. OECD data shows that the percentage of individuals owning homes by age 32 dropped from 60% for those born around 1975 to 52% for those born in 1985. This trend is driven by rising property prices, slower wage growth, and increased borrowing costs due to higher interest rates. In Greece, high costs and limited incomes mean young adults often remain in the family home until after age 30, significantly later than the EU average of 26. Eurostat reports that nearly half of EU residents aged 18 to 34 remain financially connected to or living with their parents. In Spain, the necessity of renting individual rooms has increased. Data from Fotocasa indicates that renting rooms in shared apartments has become a primary necessity rather than a secondary option. This model offers landlords approximately 33% higher profitability than traditional single-tenant rentals, with average returns of 7.2% compared to 5.4%. This trend is particularly visible in Madrid, which accounts for a significant portion of the national supply of rooms for rent. In response, the European Commission is developing regulatory frameworks, such as the proposed Affordable Housing Act. ## Claims - Younger generations in Europe have lower homeownership rates compared to previous generations at similar ages. (corroborated by 6 sources) - The homeownership rate for the cohort born around 1985 at age 32 was 52%, compared to 60% for the 1975 cohort. (corroborated by 6 sources) - At age 29, homeownership rates fell to 45% for the 1985 cohort and 41% for the 1990 cohort. (corroborated by 5 sources) - Renting rooms in a shared apartment provides approximately 33% more profitability for landlords in Spain than renting to a single tenant. (corroborated by 3 sources) - In Spain, renting rooms yields an average return of 7.2%, compared to 5.4% for renting a whole property. (corroborated by 3 sources) - Rising house prices, slower wage growth, and tighter mortgage rules are contributing to the decline in homeownership. (corroborated by 2 sources) - The European Commission has proposed the Affordable Housing Act to address housing pressure and regulate short-term rentals. (single source) - An area is considered under housing stress if it requires at least eight years of per capita disposable income to purchase an average-sized home. (single source) ## Timeline ### 2026-09-22: Europe housing crisis: Young generations face declining homeownership Younger Europeans face declining homeownership due to rising prices and interest rates. In Spain, room rentals are surging for higher landlord profitability, while the EU proposes new housing regulations. 18 sources. https://clstr.news/cluster/europe-faces-housing-crisis-as-homeownership-rates-decline ### 2026-09-12: European housing crisis widens as rent consumes rising share of wages Europe faces a growing housing crisis as rising rents and property costs outpace wages, leaving 70% of residents unable to afford a typical home. EU and national regulators are considering new housing policies. 7 sources. https://clstr.news/cluster/european-housing-crisis-average-salaries-fail-to-meet-home-costs --- Cite as: European housing affordability crisis. CLSTR, https://clstr.news/situations/european-housing-affordability-crisis