Housing in the EU: more than 2 million new homes per year needed by 2035 to meet demand

Owning a home has gradually become more difficult since Europe’s financial crisis of the 2010’s, further deteriorating after the pandemic. House prices in the EU grew faster than income: at the end of 2024, they were about 55% higher than in 2015, compared to 49% growth of net household income per capita in the same period. In 2024, the cost of housing, water and energy made up 23.6% of all household expenditure. 

To respond to the ensuing widespread public concern, the European Commission published on 16 December 2025 a European Affordable Housing Plan. JRC support of the strategy includes research on investment needs in housing by 2035, on area-specific factors associated with housing prices, and on the relation between intergenerational gap in housing affordability, income and demographic change. It also includes the New European Bauhaus, which champions research, skills and innovation to design and deliver affordable, sustainable and quality housing solutions for all. 

Read the full article from the Joint Research Centre here: https://joint-research-centre.ec.europa.eu/jrc-news-and-updates/housing-eu-more-2-million-new-homes-year-needed-2035-meet-demand-2025-12-16_en