The European Housing Crisis is a growing socio-economic challenge, marked by rising home prices, rental unaffordability, and housing insecurity across the European Union (EU) Member States. Decades of policy shifts —from strong state intervention to market-driven housing models— have transformed housing from a social necessity into investment assets. This has resulted in supply shortages, speculative investment, and widening inequalities, disproportionately affecting younger generations and lower-income households.
While housing policy primarily falls under national jurisdiction, the European Union has begun to recognise the urgency of the crisis and is taking steps to address it. Though constrained by its limited legislative authority in housing, the EU is leveraging financial instruments, regulatory frameworks, and coordination mechanisms to support affordable housing initiatives. This article explores the historical buildup, the most prominent manifestations —demonstrated in the cases of Ireland, the Netherlands, and Portugal— and the socio-economic consequences of the European Housing Crisis while assessing the EU’s evolving role in fostering longterm, sustainable housing solutions.