Latvia ranked among the EU leaders in housing overcrowding: in 2024, this figure reached 39%, second only to Romania. Against the backdrop of a Europe-wide housing affordability crisis, young people aged 18-29 are suffering the most, and the situation for Latvia is complicated by the fact that the country is among those investing the least in housing.
Youth Are Suffering
According to estimates by the European Commission, by the end of 2025, housing in Portugal was expected to be priced about 25% higher than its actual value. This is more than in any other country in the bloc, reports Euronews.
The problem hits young people aged 18 to 29 the hardest. As stated in a recent report by Eurofound, a foundation focused on improving living and working conditions, this group of Europeans is most likely to miss payments for housing and utilities.
Young people are also inclined to seek housing in cities where job opportunities are concentrated, but it is precisely there that the gap between supply and demand is most acute. This often leads to overcrowding – a situation where too many people live in one apartment or house.
In 2024, the highest rates of housing overcrowding were observed in Romania (41%), Latvia (39%), and Bulgaria (34%), while the lowest were in Cyprus (2%), Malta (4%), and the Netherlands (5%).
Little Construction
In Bulgaria, Ireland, Poland, Portugal, and Spain, as well as in some parts of Austria and Italy, the level of rental market inaccessibility is such that in many areas, renting a standard two-bedroom apartment requires more than 80% of the average salary.
Nevertheless, some countries are investing in housing construction to try to mitigate the effects of the crisis. According to the latest data from Eurostat, in 2024, 5.3% of GDP was invested in housing in the EU.
Cyprus invested the most in housing – 8% of GDP, followed by Italy (6.8%) and Germany (6.2%). In contrast, Poland invested the least – 2.2%. Latvia and Greece followed with 2.5% and 2.6%, respectively.
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