The housing shortage is leaving new generations without a home.

The housing crisis has left 14.8% of young Europeans aged sixteen to twenty-nine struggling to pay their rent, according to Eurostat data published in 2024. Moreover, 75% of people in this age group still live with their parents, and the average age at which the new generation leaves the family home currently stands at 26.3 across the European Union (Young people – housing conditions, Eurostat, 2023).

Rising rents, closing doors

The rise in rents in recent years is no secret. Young people are one of the hardest-hit groups. Finding somewhere to live, whether to study or to work, has become almost impossible without financial support. For many of them, staying with their parents has become less a choice than an obligation. The impact of this is immeasurable. It can mean living in overcrowded housing, being homeless, being unable to leave the family home or living without enough resources. In some cases, a large share of a person’s wages goes on rent, leaving little room for food and other basic needs. These conditions undermine a fundamental human right: the right to live with dignity.

Consequences and responses

Some countries are now trying to provide concrete responses. In France, people can apply for housing benefit. In addition, the authorities impose rent caps in some major cities to curb abuses. Nevertheless, these measures remain partial. Restricting short-term lets, such as holiday flats or Airbnbs, will not be enough to make up for the structural shortfall in the housing market. What is at stake is clear: enabling young people to become independent must once again be a public priority. Even so, the current responses remain limited, which makes the situation worse. The social inequalities created by this shortfall are enormous. Young working people, immigrants and students living in big cities are the most vulnerable to the housing crisis. Situations vary from region to region: Eastern Europe, notably Latvia, Romania and Bulgaria, has far higher overcrowding rates than the North. In other words, in richer countries the main problem is cost. In Southern and Eastern Europe, overcrowding comes on top of a lack of resources. Although the crisis takes different forms, its impact is undeniable.

Living independently is an essential, formative experience: learning to manage a budget, finding the balance needed for well-being… This lack of personal development and knowledge leads to the exclusion of a generation. In this worrying situation, the difficulties are not limited to money: mental health is also at stake. Although access to support at university, at work or even remotely is improving, prolonged dependence on parents or living in overcrowded housing increases the risk of anxiety and depression.

Shaping a generation

The impact of this crisis on young people may be irreversible. But the consequences are not only economic. The frustration it generates could lead to political alienation in the future. A generational divide is already emerging between young adults who lack the resources to find decent housing and older generations for whom buying a home was more affordable.

According to the International Monetary Fund (IMF), property prices in many countries have risen faster than wages.

A supportive environment and acceptable conditions are necessary for good academic results. Having a safe place, a home, is a key factor in a person’s development and well-being. The housing crisis is shaping the identity, independence and political outlook of new generations across Europe. Giving young people the opportunity to access the housing market should be a priority at European level: an essential condition for universal well-being.