A data-driven look at housing pressure across Europe
A new EU method helps local authorities identify areas where house prices are outpacing incomes
Housing affordability has become a growing concern across Europe, but the scale and causes of the pressure vary considerably between places. On Wednesday, 9 September, the European Commission proposed the Affordable Housing Act, which aims to help make housing more available and affordable across the EU. The proposal recognises that effective action requires a clearer understanding of where housing pressure is most severe.
One element of the proposal is a new data-driven method that compares average house prices with average annual household incomes. An area may be identified as being under housing stress when its price-to-income level is high, or when it is moderate but has increased over the previous ten years. Authorities can also consider local pressures such as population changes, housing supply or short-term rentals.
As this methodology shows, open data plays an important role in understanding and addressing housing pressure. Reliable and comparable data can help public authorities identify differences between territories, monitor changes and tailor responses to local needs. The European Data Portal offers access to housing-related datasets supporting research on affordability, housing costs and living conditions.
Curious about how your country compares? Explore our housing data story or browse housing-related datasets. To learn how authorities can identify areas under housing stress, read the Joint Research Centre article ‘A novel data-driven approach to identify EU areas under housing stress’.
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