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The (Many) Consequences of the Housing Affordability Problem in the EU: A Machine-Learning Empirical Analysis

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  • Mr. Jean-Jacques Hallaert
  • Iglika Vassileva

Abstract

Housing affordability is high on the economic, social, and political agenda in Europe. While the economic literature has mostly analyzed the drivers of housing unaffordability, this paper focuses on its consequences, quantifying, at the EU level, its impact on individuals’ well-being as well as its economic and demographic impact. We find that the impact of an increase in housing cost burden is large on housing adequacy as well as on poverty and health. It is somewhat smaller on fertility and labor force participation.

Suggested Citation

  • Mr. Jean-Jacques Hallaert & Iglika Vassileva, 2026. "The (Many) Consequences of the Housing Affordability Problem in the EU: A Machine-Learning Empirical Analysis," IMF Working Papers 2026/124, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2026/124
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