In recent times much has been written about the housing crisis in Cyprus and how it affects young people in particular, with growing numbers unable to afford to buy or rent decent living conditions.
We’ve reported on Limassolians protesting against high rents in 2018 and again in 2024. And while the Cyprus government has introduced schemes designed to increase affordable rentals and has plans to modernise planning & permit processes (some of which area already in place), there seems to be no light at the end of the tunnel.
We’ve seen the price of new homes skyrocket and reports of a foreign buyer frenzy, especially in places like Limassol, where Greeks, Russians, Brits, Israelis and Chinese buyers feature heavily.
But Cyprus is not alone with its crisis. A recent report in euronews explains how the severity of the European Union’s housing crisis has made it harder for citizens to find a home, as a combination of supply shortages and high rents continues to be a major issue.
EU-wide housing crisis
In 2023, 26% of young people in the EU lived in overcrowded housing, according to Eurostat. That’s 9.2% higher than the general population, highlighting how this crisis disproportionately affects the younger generation. Across the continent, skyrocketing prices and limited availability are locking millions out of their local property market.
The high cost of living
Over the past decade, house prices in the EU have risen by 48%, while rents have increased by 22%. Inflation has driven prices up by a further 36%, compounding the problem. In 2023, EU households were spending, on average, nearly 20% of their disposable income on housing. But young people were often forced to allocate much more, with many spending over 40% of their income just to keep a roof over their heads.
This financial burden is delaying independence for a whole generation. “We are jeopardising young people’s ability to become independent, to start their own lives, to form families,” says Sorcha Edwards, Secretary General of Housing Europe, speaking to Euronews.
Why is this happening?
A key issue is the lack of affordable housing and insufficient non-profit or limited-profit housing schemes. In countries where these types of housing are more prevalent, young people are moving out earlier and building stable lives. Where they’re lacking, the opposite is true.
“We’ve relied too heavily on market forces,” Edwards explains. The 2008 financial crisis dealt a severe blow to the construction industry, leading to a shortage in supply. Meanwhile, wages have failed to keep up with property prices. “If rents and house prices had remained in line with incomes, we wouldn’t be talking about a housing crisis.”
The impact of short-term lettings
The rise of short-term rentals is further exacerbating the issue. These often profit-driven schemes reduce the availability of long-term homes, making it harder for cities to house students, low and middle-income families, and even elderly residents. “We’re letting short-term solutions erode long-term housing options,” warns Edwards.
The result? Empty investment properties, displaced families, and workers pushed to the suburbs—fuelling stress, inequality, and urban disconnection.
Glimmers of hope: what’s working
Some European countries are already showing what’s possible when housing is treated as a social good, not just an asset:
- Germany: Around 2 million people live in housing cooperatives, a non-profit, democratic model that offers stability and affordability.
- Belgium (Flanders): Social housing has reduced poverty by 40% for those with access to it.
- Denmark: Targeted support helps young people avoid precarious living situations such as couch-surfing, a common prelude to homelessness.
- Netherlands: Between 20–30% of the population lives in limited-profit housing—providing vital access for those in need.
Time for a paradigm shift in housing
These examples prove that there are alternatives. “It’s time to shift away from short-term profit and return to housing as a fundamental right,” says Edwards. “We need a critical mass of responsible housing that serves social needs, not just investment portfolios.”
If Europe wants to give its youth a fair shot at adulthood, independence, and stability, the housing crisis cannot be left to the market alone. It’s time for bold public policy, sustainable housing models, and a renewed understanding that homes are for living – not just for profit.
