Young People Fleeing Unaffordable Housing

Young People Fleeing Unaffordable Housing

Peter Kopa, Prague, May 7, 2026

https://www.youtube.com/watch?v=xG_ydpJQAMU

Introduction to the Topic

Over the past decade, housing prices in many European cities have risen faster than wages, becoming one of the main obstacles to young people’s independence. According to Eurostat data, in 2024, 9.7% of young people aged 15 to 29 in the EU lived in households that spent 40% or more of their disposable income on housing, which is considered a situation of housing cost burden. This economic pressure is driving thousands of young people to leave major cities, whether to the suburbs, smaller towns, or other countries in search of more favorable conditions.

https://www.youtube.com/watch?v=LdbEh7o3yxY

The high cost of housing is not an isolated phenomenon, but a symptom of an urban-financial model that drives young people out of urban centers and threatens social cohesion.

The most regrettable and dramatic effect of this situation is the decline in birth rates. It is time for the state to give this issue the highest priority, considering that in Europe the tax burden has reached 50% of an individual’s economic productivity. The state therefore has a great deal of money that is, unfortunately, spent on aid to Ukraine, on maintaining a runaway bureaucracy, on waste, and on corruption.

Most Expensive Cities and Capitals

In 2026, Paris tops the ranking of expensive European cities with a median price of around €11,000/m², followed by Munich at around €10,138/m² and central districts of Lisbon where prices exceed €9,600/m². At the capital city level, a recent study ranks Luxembourg as the most expensive capital in Europe to buy a home in 2026, with an average price exceeding €960,000 and a cost per square meter of over €11,000.

Other capitals such as Paris, Reykjavik, Lisbon, Berlin, and Amsterdam also have average home prices ranging from approximately €546,000 to €727,000.

These figures are hardly compatible with the average income of a young person, even one with a college degree and a skilled job, which results in very limited access to homeownership. Housing cost burden refers to households that spend 40% or more of their disposable income on housing. In 2022, 9.9% of young people aged 15 to 29 in the EU lived in households with a housing cost burden. In countries such as Denmark or Greece, nearly 28% of young people are in this situation, double the EU average.

Internal and external migration

https://www.youtube.com/watch?v=TY53TCJ39DE

Internal migration: young people moving from large cities to metropolitan suburbs or medium-sized cities, where rental and purchase prices are somewhat more affordable.

External migration: moving to other European countries with better employment and housing conditions, a phenomenon particularly visible in Southern Europe since the 2008 crisis and reinforced over the past decade.

A report on Spanish youth estimated that more than 650,000 young people had emigrated abroad in search of better opportunities, amid economic precariousness and difficulty accessing housing. Although this data focuses on a single country, it reflects a dynamic shared across various European regions with highly strained urban housing markets.

Causes of the problem

Real estate speculation by large corporations unscrupulously exploits the high demand for housing, driven by divorces and mass immigration from Arab countries and North Africa. Another factor is short-term rentals to tourists, which in popular tourist destinations generate two to three times the income of a traditional rental.

The government has made a major mistake by failing to enact laws to protect young married couples. In this regard, Spain previously offered social housing at lower costs with very long-term mortgage repayment plans.

In Europe, there is a luxury housing “boom” in cities like Prague and Lisbon, which contributes to raising overall price levels and displacing middle- and low-income residents.

Social Housing Shortage

The weakness of social housing in many countries limits governments’ ability to intervene in the market and ensure affordable options: The average share of social housing in the EU is around 9.3% of the total housing stock.

Countries such as the Netherlands (30%), Switzerland (25%), Austria (24%), Norway (23%), and Denmark (20%) far exceed this average, demonstrating models where public intervention plays a significant role.

At the opposite end of the spectrum, Romania (1.5%), Estonia (1.7%), Croatia (1.8%), and Portugal (2%) have very low proportions of social housing; Spain stands at around 2.5%.

Solution: Promote social housing

Sustainably increase investment in social housing, funded by the state, with the aim of approaching the levels of countries such as Austria or the Netherlands, where more than 20% of the housing stock is social housing. Allocate public land to social rental projects, housing cooperatives, and land-use transfer schemes, so that housing remains outside the speculative market.

Such policies not only expand the supply of affordable housing but also generate an “anchor effect” on free-market prices, reducing volatility.

Limit the number of homes designated for short-term tourist rentals in high-demand areas and require strict licensing for digital platforms.

Introduce higher taxes on vacant homes and on certain short-term speculative transactions, incentivizing the inclusion of homes in the stable rental market.

Promote hubs of employment, innovation, and public services in medium-sized cities and outlying regions, thereby reducing pressure on major capitals.

Promote the expansion of remote work to encourage more flexible living arrangements, allowing young people to live in more affordable areas without losing access to skilled jobs.

Introduce government-backed guarantee programs for young homebuyers, which reduce the down payment required to purchase a home without triggering excessive debt.

Rental subsidies for people under 35 in cities with tight housing markets, contingent on income levels and stable rental contracts.

In the case of Spain, where the down payment for a home can be equivalent to four full years of a young person’s salary, these types of measures are particularly important for breaking the cycle of prolonged dependence on family support.

Dictionary

young people noun, plural

jóvenes pl m

The multicultural encounter taught young people to be tolerant. El encuentro multicultural enseñó a los jóvenes a ser tolerantes.

Many young people successfully combine work with study. Muchos jóvenes compaginan exitosamente el trabajo con el estudio.

gente joven f

less common:

juventud f

personas jóvenes pl f

adolescentes pl m/f

chicos pl m

young adjective

joven adj

I have never seen such talent in a young singer. Nunca he visto semejante talento en un cantante joven.

The victory was a great achievement for the young athlete. La victoria fue un gran éxito para el joven atleta.

less common:

de juventud

juvenil adj

reciente adj

verde adj

young noun

cría f

cachorro m

Dictionary

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