Europe’s housing shortage persists despite millions living in larger homes

16 July 2026

Around one in three people across the European Union live in homes that are larger than their household size requires under Eurostat’s statistical definition, highlighting a growing mismatch between Europe’s housing stock and changing demographic trends. At the same time, many cities continue to face severe shortages of affordable housing, illustrating that the continent’s housing challenges extend beyond the availability of residential space.

According to the latest Eurostat housing statistics, 33.4% of the EU population lives in dwellings classified as under-occupied, meaning they contain more rooms than are considered necessary based on household size and composition. The measure reflects a statistical standard rather than indicating that homes contain unused bedrooms available for immediate occupation. Spare rooms may serve as home offices, guest accommodation, care spaces or other household needs.

The highest levels of under-occupation were recorded in Cyprus, where 69.4% of residents live in homes larger than the statistical benchmark, followed by Ireland (66.0%) and Malta (63.2%). Other countries with comparatively high levels included the Netherlands (58.5%), Belgium (57.0%), Spain (54.3%), Luxembourg (52.2%) and Norway (51.0%).

At the opposite end of the spectrum, Romania recorded the lowest rate at 8.1%, followed by Serbia (8.2%), Türkiye (10.3%), Latvia (10.5%) and Greece (12.5%). Under-occupation also remained relatively uncommon in Croatia, Bulgaria, Slovakia, Poland, Lithuania and Italy, where fewer than one in five residents lived in homes exceeding the statistical room standard.

The figures reflect significant differences in housing markets across Europe. Countries with high levels of homeownership, ageing populations and predominantly detached housing typically report higher levels of under-occupation, as older households often remain in family homes after children have moved away. By contrast, many Central and Eastern European countries continue to experience higher household occupancy levels, smaller average dwellings and greater rates of overcrowding.

Among Europe’s largest economies, the contrast is particularly pronounced. More than half of Spain’s population lives in statistically under-occupied housing, compared with 40.4% in France, 33.3% in Germany and 18.2% in Italy, highlighting the diverse structure of housing markets even within Western Europe.

Housing experts caution that under-occupation should not be interpreted as a simple solution to Europe’s housing shortage. Research indicates that many households occupying larger homes have limited opportunities to relocate because suitable, affordable alternatives—particularly smaller homes designed for older residents—are often unavailable. Moving costs, accessibility requirements and personal circumstances also influence household decisions.

Organisations working in the affordable housing sector argue that policies aimed solely at encouraging households to downsize are unlikely to resolve broader affordability challenges. Instead, they point to the need for greater investment in affordable and social housing, increased residential construction and the redevelopment of vacant buildings that can be returned to productive use.

The latest Eurostat data underline the wider imbalance within Europe’s housing market. While millions of residents occupy homes that exceed their statistical housing needs, many others continue to face overcrowding or struggle to access affordable accommodation. According to Eurostat, households across the European Union spent an average of 18.9% of their disposable income on housing in 2025, with significantly higher shares recorded in several member states.

As demographic change continues to reshape household composition, policymakers are increasingly focusing not only on expanding housing supply but also on ensuring that new developments better reflect evolving demand. Industry experts argue that delivering more affordable apartments, accessible housing for older residents and a broader mix of dwelling sizes will be essential if Europe’s housing market is to respond more effectively to changing population needs.

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