Why owning a home is becoming harder for young Europeans
OECD data show that homeownership among younger generations in Europe is steadily declining compared with previous generations at the same age. Experts cite rising mortgage costs, a growing gap between prices and wages, and shifts in the labour market.
Europe is facing a housing affordability crisis that is hitting young people especially hard, with fewer of them able to buy a home at the same age their parents did. That is the picture emerging from OECD data covering 20 EU countries, analysed by Euronews Business.
The figures show a clear trend: among people born in 1975, about 60% owned a home by age 32, but among those born in 1985 the share had dropped to 52%. Similar gaps appear at younger ages too — at 29, 52% of people born in 1980 owned their home, compared with just 41% of those born in 1990. By contrast, older generations born in the 1960s and 1970s showed very similar ownership rates at comparable ages.
The reasons behind the decline
OECD experts point to a combination of interlinked factors. Rising interest rates since 2021 have pushed up mortgage borrowing costs, while house prices in many countries are climbing faster than incomes. Relatively slow wage growth makes it harder for first-time buyers to save a deposit and secure financing. Longer periods spent in higher education are also delaying young people's entry into the labour force and independent living.
Sharpest declines and exceptions
Comparing the mid-1990s with the most recent available data, homeownership among people around age 30 has fallen in roughly two-thirds of European countries. The steepest drops occurred in Ireland (from 81% to 53%) and Greece (from 78% to 58%), along with the UK and Spain. A UK-based expert notes the problem goes beyond saving a deposit — many buyers simply cannot borrow enough to purchase in the area where they live.
The opposite trend is visible in former socialist countries such as Slovakia, Czechia and Poland, where privatisation of housing stock after 1989 drove ownership sharply upward. Among the five largest European economies, only France recorded an increase.
