News
Europe’s Housing Crisis Worsens, Young Spaniards Struggle to Enter Market
Europe’s housing crisis continues to escalate, with soaring property prices and a lack of affordable housing making it increasingly difficult for young people to enter the market—particularly in Spain, where residents in major cities are being priced out.
Rising Housing Costs Across the EU
Affordable housing has become a pressing issue across the EU, with one in 10 households in major cities spending more than 40% of their income on rent, according to the latest Eurostat data. This figure drops to 7% in rural areas. A combination of rising property prices, limited housing supply, and the expansion of tourist rentals is making access to housing more challenging, especially for young people.
Between 2010 and the third quarter of 2024, house prices in the EU surged by 54%, while rents increased by 26%. Estonia and Lithuania experienced the steepest increases, whereas Italy saw house prices decline, and Greece was the only country where rent prices fell.
Spain Faces a Severe Housing Crunch
Spain has been particularly affected, with rental prices soaring by 11.5% in 2024, according to property website Idealista. December marked a record high, with average rental prices reaching €13.5 per square meter.
“In Madrid, housing prices have surged by 20% in the past year for purchases and 15.4% for rentals,” said Quique Villalobos, a spokesperson for urban planning and housing at the Federation of Neighbourhood Associations of Madrid.
In the city centre, rents have jumped by 21%, with few properties available for less than €2,000 per month. In nearby metropolitan areas, three-bedroom apartments now command between €1,200 and €1,500 per month.
Barcelona faces a similar crisis, with the booming short-term rental market playing a key role in driving up costs.
Young People Struggling the Most
The housing crisis has hit young people particularly hard. On average, Europeans leave their parental homes at 26.3 years old, but in Spain, that figure rises to 30.4—one of the highest in the EU.
“Housing is responsible for 70% of inequality in Spain,” said Víctor Camino, a Socialist Party (PSOE) lawmaker. “Thousands of young people spend up to 70% of their salary on rent or mortgage payments.”
Paula de las Heras, a lawmaker from the opposition People’s Party (PP), noted that young people have been struggling for over a decade due to stagnant wages and limited savings. The upfront cost of homeownership, requiring €20,000–40,000 in initial investment, remains out of reach for many.
Political Divide Over Housing Solutions
Spain’s government, led by PSOE, is enforcing a new Housing Law that includes rent caps in high-cost areas. Camino pointed out that while rent prices have declined in Catalonia, they have continued to rise in Madrid, where local authorities have refused to implement the law.
De las Heras defended Madrid’s approach, emphasizing initiatives to expand affordable rental housing and help young buyers enter the market.
Villalobos argued that increasing public housing supply is key, calling for government investment to raise Madrid’s public housing share from 1% to 9%. He also advocated for taxing vacant homes and banning evictions without alternatives.
A Widespread Challenge Across the EU
Europe’s housing crisis is not confined to Spain—it is a structural problem affecting the entire bloc. Recognizing adequate housing as a fundamental right, the European Parliament passed a resolution in 2021 calling for stronger protections. In 2024, European Commission President Ursula von der Leyen prioritized housing policy, leading to the creation of a special committee to propose solutions by 2025.
As policymakers seek solutions, millions of young Europeans face an uncertain future in an increasingly unaffordable market. Camino stressed the need for coordinated political action, warning against a society divided between wealthy property owners and struggling tenants.
News
EU Must End ‘Naivety’ on Trade and Confront China’s Industrial Strategy, Says French Minister
France’s Minister for Foreign Trade, Nicolas Forissier, has called on the European Union to abandon what he described as “naivety” in its approach to global trade, urging a tougher stance on countries accused of distorting markets through industrial policy and trade practices.
Speaking in an interview with Euronews’ 12 Minutes With programme, Forissier said Europe must respond more firmly to what he described as the weaponisation of trade dependencies, warning that China in particular could damage its own long-term interests by undermining European industry.
“The Chinese have to understand that they won’t win anything if they destroy the European industry and then the European market, which is an essential market for them,” he said. “We must no longer be naive.”
His comments come as the European Commission prepares to hold an “orientation debate” next week on how to respond to a surge of low-cost Chinese imports. The discussion is expected to shape possible new trade defence measures, with further talks likely when EU leaders meet in Brussels in mid-June.
Forissier said the shift in thinking was not limited to China alone but applied to any country using commercial leverage to gain strategic advantage. “It is not only China,” he said. “It is all the countries that weaponise trade.”
Among the proposals under consideration is a requirement for EU companies to diversify supply chains, sourcing components from at least three different suppliers in order to reduce dependency on any single foreign market. Asked whether he supported such a measure, Forissier replied: “Yes, we have to.”
Other options include targeted tariffs on sensitive industries such as chemicals, alongside stronger use of anti-dumping and anti-subsidy tools to counter imports priced below domestic market levels. These measures are designed to address concerns over overcapacity in China’s industrial sector and its impact on European manufacturers.
The debate is taking place against a backdrop of widening trade imbalances. EU goods imports from China exceeded exports by €359.3 billion in 2025, marking an increase of nearly 20% compared with the previous year.
China has already warned it could retaliate if the bloc imposes new restrictions, raising concerns about potential escalation in trade tensions between two of the world’s largest economies.
France has repeatedly pushed for a more assertive European trade policy, arguing that state subsidies, export controls on raw materials and industrial overproduction in major economies are distorting global markets.
Forissier stressed that Europe must maintain open dialogue with Beijing while defending its own industrial base. “We try to respect the Chinese,” he said. “The Chinese have to respect us, and this is the message European institutions have to send.”
News
US Says Iran Talks ‘Borderline’ as Pakistan Pushes Diplomacy Amid War Tensions
News
US Green Card Rule Change Forces Most Applicants to Apply From Abroad
-
Entertainment2 years agoMeta Acquires Tilda Swinton VR Doc ‘Impulse: Playing With Reality’
-
Sports2 years agoChina’s Historic Olympic Victory Sparks National Pride Amid Controversy
-
Business2 years agoSaudi Arabia’s Model for Sustainable Aviation Practices
-
Business2 years agoRecent Developments in Small Business Taxes
-
Home Improvement1 year agoEffective Drain Cleaning: A Key to a Healthy Plumbing System
-
Politics2 years agoWho was Ebrahim Raisi and his status in Iranian Politics?
-
Sports2 years agoKeely Hodgkinson Wins Britain’s First Athletics Gold at Paris Olympics in 800m
-
Business2 years agoCarrectly: Revolutionizing Car Care in Chicago
