Over the past decade, housing prices in the European Union have risen by more than 20%, while the number of building permits issued in the last five years has fallen by over 20%, according to data presented by European Commission President Ursula von der Leyen in her State of the Union address. The housing crisis is increasingly affecting the entire continent, including Poland. The European Commission is currently conducting consultations on the first-ever European Affordable Housing Plan, expected to be ready later this year.
According to Eurostat, between 2010 and 2024 housing prices in the EU rose by an average of 55.4%, while rental prices increased by 26.7%. In Poland, housing prices doubled over the past 14 years. Even sharper increases were recorded in Hungary (over 250%), Estonia (approx. 230%), and Lithuania (nearly 200%). Poland’s Central Statistical Office (GUS) reported that in Q1 2025, housing prices in Poland rose by 13.2% year-on-year, compared to 5.7% in the EU.
“The European Union is seen as a ‘green island,’ a place where people from around the world want to come because of democracy and a relatively high quality of life. This has driven housing prices up not only in Poland but across many EU countries, sometimes to unrealistic levels. For the first time, the EU has appointed a commissioner to deal with this issue, and Ursula von der Leyen is preparing a special summit where leaders will discuss regulations to ensure that young people have the opportunity to rent or buy housing at reasonable prices,” said Dariusz Joński, MEP from the Civic Coalition, in an interview with Newseria.
Von der Leyen stressed that the situation is no longer just a housing crisis but a social crisis. She announced consultations on the European Affordable Housing Plan, which will include support for housing construction, accelerating the building of new homes and dormitories, and new regulations on short-term rentals. Priorities will be discussed at the first EU Housing Summit.
“Each country has different regulations, slightly different housing problems, and different prices, so this will be a huge challenge. But it’s essential if we want young people to stay, work, and contribute to Europe instead of choosing the U.S., China, India, or other Asian countries. It’s the task of the European Commission and Parliament to create these conditions,” Joński added.
Housing Shortage in Poland
Many EU member states, including Poland, face a significant housing shortage. The issue involves not only the number of available units but also their technical condition and affordability. In Poland, estimates suggest a shortfall of between 500,000 and 2 million homes. The problem is particularly acute in large urban areas and their satellite towns. The crisis is further aggravated by high borrowing costs, as Poland’s interest rates remain relatively high compared to the EU average (4.75%).
“Inflation is one of the lowest in Europe, below 3%. With such low inflation, there is no need to keep interest rates so high, as they directly impact credit costs. If we want to stimulate the housing market and lower expenses for households taking out mortgages, interest rates must come down,” argued Joński.
Structure of Housing Supply
Another problem in Poland is the overwhelming dominance of owner-occupied housing compared to rental units. In 2024, more than 87% of housing space was owned by individuals and housing cooperatives, while only 12.7% consisted of rental housing. This ownership structure has persisted for years. According to GUS, in H1 2025 only 517 municipal apartments (down 40% year-on-year) and 1,500 social rental apartments (up 32%) were completed—together accounting for less than 3% of all new units. For comparison, developers delivered more than 57,000 apartments for sale in the same period.
“Even if we reduced mortgage costs—which is important—housing prices in Poland remain among the highest in Europe. This is a huge challenge. Expanding rental housing and supporting housing associations (TBS) are part of the solution. No single EU country has managed to fully solve this problem alone, which is why a joint European effort may be necessary,” said Joński.
Housing Crisis Perceived as Urgent by Europeans
According to this year’s Eurobarometer survey, the lack of affordable housing is seen as the most pressing problem by urban residents. 51% considered it urgent. In smaller towns and rural areas, the share was lower—37% and 28%, respectively. Respondents suggested solutions such as modernizing existing housing stock, introducing incentives for building more affordable homes, monitoring rent levels, and expanding rental assistance programs.
