Since structural

Housing crisis

Construction lags household formation across most of the EU. The result is rent inflation, mortgage stress and a mobility penalty for workers who cannot move to where the jobs are — a productivity loss that never appears as a government expense.

Accrued this year

€145,221,003,025

€6,686 /sec

Per citizen

€323.43

€470 per year

Per household

€737.16

€1,071 per year

Cost timeline

Modelled yearly cost across the EU, 2015–2026.

EU-wide

Figures are EU-wide and divided equally across 449 million residents.

Direct costs

€106.0 bn/yr

Money that leaves a public budget or an invoice.

  • Housing allowances and rent subsidies€58.0 bn
  • Homelessness services and emergency shelter€6.0 bn
  • Social housing capital shortfall€42.0 bn

Indirect costs

€105.0 bn/yr

Prices, productivity and welfare effects citizens absorb.

  • Excess rent paid above long-run trend€70.0 bn
  • Labour mobility and productivity loss€25.0 bn
  • Delayed household formation€10.0 bn

Sources & references