Summarize this content to 2000 words in 6 paragraphs
Europe’s housing crisis is worsening, and young people in Spain are struggling to get on the ladder as prices soar, experts tell Euronews.
A lack of affordable housing has become one of the main concerns for citizens in the EU, especially in Spain where residents of cities like Barcelona and Madrid say they are being priced out of the property market. In the bloc’s biggest cities, one in 10 households spend more than 40% of their income on rent, according to the latest data from Eurostat. In rural areas, this figure drops to 7%.In this context, soaring prices, a lack of supply and the rise of tourist rentals are hindering access to decent housing in the bloc, especially for young people.Spain in the spotlightBetween 2010 and the third quarter of 2024, house prices in the EU increased by 54% and rents by 26%, the Eurostat data shows. Estonia and Lithuania registered the highest rises in both respects across the bloc, while Italy was the only country to see falling house prices and Greece the only nation to see rent prices drop.According to Spanish property website Idealista, rental prices in Spain rose by 11.5% in 2024, reaching an all-time high in December with an average of €13.5 per square metre.Quique Villalobos, a spokesperson for urban planning and housing with the Federation of Neighbourhood Associations of Madrid said that in the capital “in just one year the price of housing has risen by 20% in terms of purchase, and 15.4% in terms of rent”.This phenomenon is particularly noticeable in large cities such as Madrid, Barcelona and Valencia, fuelled by a combination of demographic pressure and booming tourism.In Madrid, the city centre has seen rents increase by 21% in one year, with prices rarely falling below €2,000 per month, Villalobos said. In municipalities in the metropolitan area, rents of €1,200 to €1,500 are being demanded for three-bedroom properties, he added.In Barcelona, the picture is similar, with the boom in tourist flats being a key factor. Young people are the hardest hitOn average, young people in the EU leave their parental home at the age of 26.3 years, according to Eurostat. Spain has the fourth highest average age in the bloc, at 30.4.”Housing explains 70% of the inequality in this country,” Víctor Camino, a lawmaker for Spain’s Socialist Party (PSOE), told Euronews. “Thousands of young people pay up to 70% of their salary on rent or on a purchase.”Paula de las Heras, a lawmaker for Spain’s People Party (PP) in the Madrid Assembly, said that young people had been going through tough economic times for a decade.”They have little capacity to save, salaries are not rising,” she said. To access housing, an initial investment of between €20,000-40,000 is required, which is unattainable for many.In Spain, political positions divergeSpain’s central government, led by the PSOE, is committed to enforcing the nation’s new Housing Law, which includes measures such as rent caps in the worst-affected areas. Camino pointed out that rents had dropped in Catalonia but risen in Madrid, and criticised the city for not applying the legislation.De las Heras defended Madrid’s strategy, and said the city was supporting schemes to build thousands of affordable rental homes and help young people get on the ladder.The key is increasing the supply of public housing, according to Villalobos, who called for this to hit 9% of total housing in Madrid, up from 1% at present.”We need to invest between 2% and 3% of GDP,” he said, adding that empty homes should be taxed while evictions without alternatives should be banned. “The solution to housing is a multifaceted problem.”A shared challengeThe housing crisis transcends borders, reflecting a structural problem across the EU.The bloc has taken some steps to address this crisis. In 2021, the European Parliament passed a resolution recognising adequate housing as a fundamental human right.In July 2024, Ursula von der Leyen, president of the European Commission, announced that housing would be a priority, with the creation of a specific commissioner on the issue. In December, a special committee was set up to propose solutions within a year.While institutions and policymakers search for answers, millions of citizens, especially young people, face an uncertain future in the face of a runaway housing market. In the words of Camino, “we cannot allow a society divided between rich multi-owners and poor tenants”. The solution requires political will and coordinated action, he said.
