Europe’s Housing Paradox: Under-Occupied Homes Amid Crisis

Europe faces a striking contradiction: widespread housing shortages coexist with millions of under-occupied homes across the continent.

Data from Eurostat reveals that nearly one-third of EU residents (33.4%) live in dwellings larger than needed, highlighting a significant mismatch between housing supply and household requirements. This phenomenon, known as under-occupation, typically affects older residents who remain in family homes after children have moved out.

The situation varies dramatically by country. Rates range from just 8.1% in Romania to an alarming 69.4% in Cyprus, with notable differences across regions.

Eastern Europe Shows Lowest Under-Occupation Rates

Under-occupation remains rare across Eastern and Southeastern Europe. Romania leads with the lowest rate at 8.1%, followed by Serbia (8.2%), Turkey (10.3%), Latvia (10.5%), Greece (12.5%), and Croatia (14.7%).

Other low-ranking countries include Bulgaria (15.8%), Slovakia (15.9%), North Macedonia (17%), Poland (17.9%), Lithuania (18%), and Italy (18.2%). Estonia, Czechia, and Hungary follow closely at approximately 27%.

Highest Under-Occupation Found in Island Nations

Cyprus tops the list at 69.4%, followed by Ireland (66%) and Malta (63.2%)—all island nations. The Netherlands (58.5%), Belgium (57%), Spain (54.3%), Luxembourg (52.2%), and Norway (51%) also report rates exceeding 50%.

Nordic countries show mixed results: Finland (46.6%) and Denmark (42.4%) surpass the EU average, while other Nordic nations remain closer to the midpoint.

The contrast sharpens when examining the EU’s largest economies. Spain reports 54.3% under-occupation—three times higher than Italy’s 18.2%. France stands at 40.4%, slightly above the EU average, while Germany aligns closely at 33.3%.

Southern Europe’s Divergent Trends

The disparity within Southern Europe cannot be attributed to a simple geographic divide. While Cyprus, Malta, and Spain exhibit high under-occupation rates, Italy, Greece, Turkey, and much of the Balkans show significantly lower figures. This suggests varying socioeconomic factors rather than broad regional patterns.

Policy Solutions and Challenges

Experts emphasize the need for housing policies aligned with changing household demands. FEANTSA, the European Federation of National Organisations Working with the Homeless, argues that increasing supply of smaller homes is crucial. The UK’s “bedroom tax” proves ineffective where appropriately sized units remain scarce.

“Bringing empty homes back into use for affordable and social housing may prove more effective than penalizing under-occupation,” FEANTSA noted. “Ignoring structural causes like underinvestment in social housing perpetuates the problem.”

Homeownership’s Role in Under-Occupation

Tenure type strongly influences under-occupation rates. Homeowners experience 40.5% under-occupation compared to just 14.2% among renters. Professor Sebastian Kohl from Berlin’s Free University attributes this to institutional setups favoring homeownership.

Household composition also matters. Most under-occupied spaces belong to one- and two-person households without children, particularly among higher-income groups. Cities contain 41% of under-occupied dwellings, with rural areas and towns each accounting for roughly 30%.

Measurement Complexities

Country-specific definitions complicate cross-border comparisons. Spain, Ireland, and Finland count kitchens as rooms in surveys, while others do not. Additionally, only 40% of officially under-occupied residents consider their homes oversized, revealing a disconnect between objective metrics and lived experiences.

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