Own apartment or parental home? The reality of young people’s housing in Europe

Housing affordability is becoming one of the biggest challenges for young people around the world. However, in some countries it is more difficult than in others. Unaffordable housing and rental prices are increasing the age of independence. What options do young people have if they want to leave their parents?

Becoming independent from their parents and finding their own housing is one of the most important life steps for young people. However, they increasingly encounter obstacles – the unavailability of apartments, high purchase or rental prices and difficult conditions for obtaining a mortgage. Housing costs are rising faster than salaries, and for many, owning their own home is becoming a distant dream. As a result, young people are leaving their parents at an older age and are increasingly looking for alternatives, such as cohabitation or long-term rental.

According to a Eurostat survey , a total of 93 percent of people are concerned about the rising cost of living. The cost of living varies across Europe, and the difference between countries can be several times greater. The differences are not only in housing prices, but also in food, transport and leisure. However, housing costs take the most out of budgets, which is also a reason to stay with your parents.

The average age of becoming independent in the EU is 26 years

While in Nordic countries such as Finland, Sweden, Denmark and Estonia young people become independent around the age of 21 or 22, in Slovakia it is often only after the age of 30. According to Eurostat, young Slovaks leave their parents on average at the age of 31, which is significantly above the European average (26 years). Only Croatians become independent later, at the age of about 33.

The average age of young people leaving their parents’ home has increased in 14 European Union (EU) countries over the past decade. The highest increases were in Croatia (+1.8 years), Greece (+1.7) and Spain (+1.6). In 2012, the lowest average was in Sweden, at just under 20 years, but even that has increased by 1.5 years over time. Men moved out of their parents’ home later than women. On average, men became independent at the age of 27.3, while women at the age of 25.4.

Slovakia is one of the countries where young people live with their parents the longest. Almost 58 percent of the population aged 25 to 34 still lives at home. In Denmark, it is only 3.5 percent, in Finland 4.2 percent and in Sweden 7.5 percent. On the other hand, Croatia has almost 64 percent of people living in parental homes and Poland almost 54 percent.

Housing costs

Housing is becoming an increasingly financial burden. According to Eurostat, households in European cities spend an average of 19.7 percent of their disposable income on housing costs. The highest figures were in Greece (35.2 percent), Denmark (25.9 percent) and Germany (25.2 percent). For young people, who often move at the beginning of their careers, it can be problematic and demanding, and they therefore choose to stay in their parents’ home for longer.

Many young people are looking for alternatives to owning their own home, which are often more affordable. One option is co-living, a modern form of housing where individuals rent a room in a shared space and share a kitchen, bathroom, living room or work space. The co-living market in Europe accounted for more than 21.8 percent of sales last year. It is often popular in larger cities where young people move to study or work.

Rental housing can also be an alternative. Some European countries even offer social or affordable rental housing for young people and families with low incomes. The European Union has also decided to include the housing crisis among its priorities. In the future, European funds could also help with the construction of rental housing. According to Eurostat data , the highest number of renters is in Switzerland (57.4 percent), Germany (52.4 percent) and Austria (45.7 percent).

The current increase in property prices and housing costs is playing against the disadvantage of young people looking for their own homes. Whether housing will become more affordable will only be determined by further developments in property prices and political decisions. Solutions may include supporting rental housing, increasing the supply of affordable housing or developing alternative models such as co-living. The future of housing for young people will therefore depend on the ability of states and cities to adapt to new needs.