Eurostat: Young Europeans Spend Up to 80% of Income on Rent

Dublin: Young people across Europe are spending as much as 80% of their wages on rent, highlighting the severity of the continent’s housing crisis, according to a new Eurostat study.

The report found that 10% of people aged 15–29 are overspending on housing costs, compared with 8% across all age groups. Denmark recorded the highest pressure, with 29% of young people struggling to meet housing costs—representing 15% of the country’s population. In the Netherlands, 15% of young people face housing cost stress, more than double the national average for all age groups.

EU Housing Shortfall Widens

The European Commission estimates that the EU needs to build more than two million homes annually to address the crisis. Current construction stands at around 1.6 million homes a year, leaving a shortfall of approximately 650,000 units.

House prices across the EU have risen by more than 60% between 2013 and 2024, significantly outpacing household income growth. Over the same period, rents increased by about 20%. Residential building permits have fallen by 22% since 2021, while around 20% of existing homes remain unoccupied, the report noted.

Mental Health Impact

Experts warn that housing insecurity is contributing to rising levels of stress, anxiety and depression, particularly among younger generations. Persistent unaffordable housing and unstable living conditions can undermine mental wellbeing, creativity and long-term personal development.

Specialists are calling for innovative housing and care models to address both the accommodation shortage and its psychological impact. They stress that mental health services must be accessible to those living in insecure housing or under severe financial pressure due to high housing costs.

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