IDEAS home Printed from https://ideas.repec.org/a/euf/qreuro/0241-02.html
   My bibliography  Save this article

Selected Macroeconomic And Social Aspects Of Housing Affordability

Author

Listed:
  • Mirko Licchetta
  • Vitor Martins
  • Matteo Salto
  • BoÅ™ek VaÅ¡Ã­Ä ekr

Abstract

Over the past decade, the housing market in the EU has been characterised by significant price growth, putting pressure on housing affordability. Despite a price moderation in 2022 and 2023 due to monetary tightening and increased mortgage interest rates, house prices remain historically high in approximately three-quarters of the EU, highlighting an underlying mismatch between demand and supply. On the demand side, urbanisation and demographic changes have driven up demand, while on the supply side, constraints in construction have hindered the market's ability to meet demand, leading to reduced affordability. To improve overall housing affordability, there is an urgent need to increase investments in new construction and in the renovation of existing stock as well as to review the role of regulation and to improve administrative capacity, which have been hindering the expansion of housing supply in the recent decades.

Suggested Citation

  • Mirko Licchetta & Vitor Martins & Matteo Salto & BoÅ™ek VaÅ¡Ã­Ä ekr, 2025. "Selected Macroeconomic And Social Aspects Of Housing Affordability," Quarterly Report on the Euro Area (QREA), Directorate General Economic and Financial Affairs (DG ECFIN), European Commission, vol. 24(1), pages 31-39, June.
    • Handle: RePEc:euf:qreuro:0241-02
    as

    Download full text from publisher

    File URL: https://economy-finance.ec.europa.eu/document/download/15716dd3-94fa-4fcd-b975-a1680ed7cd5b_en?filename=ip322_en.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:euf:qreuro:0241-02. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ECFIN INFO (email available below). General contact details of provider: https://edirc.repec.org/data/dg2ecbe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.