In an article published in Politico on 17/12/2024, Spanish Prime Minister Pedro Sanchez stated that Europe's housing crisis is devastating living standards. He warned that without decisive action, Europe risks becoming a temporary shelter rather than a place of true homes.

Data reveals that between 2010 and 2025, house prices in Europe increased by 60%, while rents rose by nearly 30%. In Estonia and Hungary alone, prices have tripled. In major cities such as Madrid, Lisbon, and Budapest, even individuals with stable employment cannot afford to live where they were born or work.

Currently, around 93 million people, or 20% of Europe's population, face the risk of poverty or social exclusion. "Housing, once a basic right, has now become a trap threatening social cohesion and economic dynamism," Sanchez wrote.

Rising house prices put many Europeans at risk of poverty and homelessness. Illustration: Reuters/Nacho Doce

Analyzing the root cause, Sanchez pointed to a persistent supply shortage over the past two decades. Following the 2008 financial crisis, housing investment plummeted and never fully recovered. The subsequent pandemic further exacerbated shortages of labor and raw materials.

Additionally, speculation places residents in a difficult position. Housing is becoming a financial instrument or serving short-term tourism rather than actual residential needs. By 2025, the EU expects around 4 million short-term rental listings on digital platforms. In cities like Madrid and Valencia, local residents are being pushed out of historic centers, which are gradually transforming into "amusement parks" for tourists.

In Ireland, investment funds have acquired nearly one-half of all newly built homes since 2017. In Sweden, institutional investors now control 24% of the total private rental apartments.

In response to this situation, Sanchez welcomed the European Commission's Affordable Housing Plan. Brussels has begun to acknowledge the scale of the emergency and understands that each locality requires specific responses, including restricting short-term rentals and increasing supply.

The Spanish Prime Minister asserted that the time for discussion is over. Now is the moment for action to prevent the crisis from fueling social unrest. "The measure of a strong union is ensuring that all citizens have a place to call home," he concluded.

Minh Phuong (According to Politico)