
The cost of housing is soaring across Europe, with students and first-time buyers particularly hard hit. In Norway, 13,700 students are without accommodation, while in Germany, rising construction interest rates and high property prices are making homeownership increasingly unattainable for many.
In Norway, the annual student housing survey by NSO reveals that 13,700 students lack housing to meet NSO's goal of 20% of all students living in student housing. Currently, only 15.28% of students have access to student housing. In Stavanger, the situation is particularly dire, with long waiting lists for student housing. "Here, students get their own room with everything they need, a fridge, a stove, and a pretty nice view," says Kristina Renberg, Marketing and Communications Director at Studentsamskipnaden i Stavanger (SiS). However, many students are forced to look for accommodation in the private market, where rents have increased by 35% from October 2021 to April 2026.
In Germany, the dream of homeownership is becoming increasingly elusive. Rising construction interest rates and high property prices are making it difficult for first-time buyers to enter the market. According to the Handelsblatt article, the average home price is reaching record levels, and the necessary equity has increased to around €131,000. "The dream of owning a home is moving further away for a growing number of people," the article states.
In the Netherlands, student room rents outside the Randstad are rising significantly faster than the national average, according to Kamernet. This trend is making it harder for students to find affordable housing. Additionally, in Amsterdam, more homes are being listed and sold, but at lower average transaction prices, indicating a potential shift in the market.
In Spain, home sales continue to fall while prices soar. According to Expansión, home sales fell by nearly 12% in May, marking the fifth consecutive month of decline. Meanwhile, prices increased by 8.8%, exacerbating the affordability crisis.
The housing market challenges are not limited to students and first-time buyers. In Estonia, the real estate development market is highly cyclical, with costs constantly incurred and results fluctuating significantly. According to an article from PMO, three listed companies—Liveni, Arco Vara, and Hepsori—reported growing revenues but deepening losses in the first half of the year. However, these companies expect their results to turn profitable by the end of the year as several major development projects are completed.
In France, the rental market is also facing pressures. According to La Vanguardia, renting a property is no longer just about setting a rent and finding a tenant. The pressure on the market, regulatory changes, and increased litigation around leases have made signing a contract an economic decision that requires prior checks. "The property continues to be seen as a tangible asset and that gives a lot of peace of mind to the investor," explains Pilar Tomé of Vilches Abogados. However, this perception should not lead to minimizing risks, she warns.
In Greece, a heartwarming story emerges amidst the housing crisis. A woman who saved money for nine years to buy a plot of land but couldn't afford to build a house saw her dream come true thanks to 800 volunteers who helped construct her home.
In Frankfurt, many Germans fear receiving too low a pension and are looking for alternative ways to secure their income in old age. One seemingly lucrative option is renting out apartments in a multi-family house. However, a recent survey by the Haus & Grund owners' association showed that many private landlords are only breaking even or even making losses with their properties.
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