“Despite some improvements, the effectiveness of the social protection system in mitigating poverty risks and reducing inequalities remains low, and new challenges have emerged in the housing sector,” stated the European executive in a report on social and employment dimensions, released today as part of the European Semester autumn package.
Specifically, according to Brussels, last year the proportion of the population facing excessive housing costs in Portugal was 6.9%, still below the EU average of 8.2%, but representing one of the largest increases in the European Union (EU), with a two percentage point rise.
This is thus “an indicator to monitor,” the institution notes, justifying it with “the continuous rise in housing prices and rents in recent years.”
Portugal is among the EU countries experiencing annual double-digit growth rates in house prices, driven by strong demand and limited supply.
Due to the significant housing crisis in the EU, the European Commission will present a European Affordable Housing Plan in mid-December, aimed at complementing national, regional, and local housing policies while maintaining the principle of subsidiarity, as housing is a competency of member states.
The presentation of this European housing package, including an EU plan for affordable housing, a proposal to revise state aid rules related to services of general economic interest, a new European Bauhaus program, and a new strategy for housing construction, is scheduled for December 16.
The plan will include funding, state aid, and limits on short-term rentals.
The European Union faces a housing crisis in countries like Portugal, where house prices and rents have risen significantly, making it difficult to access affordable housing, especially for young people and low-income families.
It is estimated that in the EU, more than one in four people aged 15 to 29 live in overcrowded conditions, with a large portion of young Europeans leaving their parents’ home around or after the age of 30 due to the inability to afford their own home.
In 2023, about one in ten Europeans spent 40% or more of their income on housing and related costs.
