Europe faces a growing housing crisis, prompting the European Commission's first-ever Affordable Housing Plan. While most nations offer housing benefits, support levels diverge sharply.
In 2024, housing accounted for €66.5 billion, or 0.37% of EU GDP, averaging €148 per inhabitant. Spending per person varies dramatically, from nearly zero in Bulgaria to €755 in Ireland. Finland follows at €484, with the UK at €406 (based on 2018 data). Denmark, Iceland, Germany, and Switzerland each spend over €300 per person.
Among the top economies, Italy and Spain allocate significantly less housing aid per person than their counterparts. When adjusted for purchasing power, Ireland remains at the top with 535 PPS, followed by Finland and the UK.
Germany leads in total nominal spending at €27.4 billion, with France second at €16.1 billion. The UK's 2018 figure was €27 billion, with projected spending of €43.3 billion for 2025-2026.
As a percentage of GDP, housing benefits range from near zero in Bulgaria to 0.99% in Finland. The UK's 2018 figure stood at 1.11%. Many countries, including Ireland, Germany, Denmark, France, and Cyprus, allocate over 0.5% of their GDP to housing aid.
The new European Affordable Housing Plan aims to boost housing supply, trigger investment, and support those most affected by rising costs. However, over the last decade, EU house prices rose 64% and rents 21%, making affordability a critical challenge.