The energy crisis will exacerbate the housing problem across Europe. According to experts, a significant increase in heating costs (along with rising costs of living) will further limit the ability of a large part of the middle class to find affordable housing.

In Greece, where there is no social housing dampener or housing policy, and rent prices have been reaching unrealistic levels for two years now, the problem is expected to be even more acute.

The impact of the energy crisis on housing in Europe is highlighted in a recent report by Housing Europe, which is made up of members (of various forms) of social or cooperative housing.

The report points to a significant increase in inflation in the EU and therefore the cost of living, along with a continued rise in rents.

This situation has not bypassed housing policy: in Germany, 64% of social housing companies have postponed the construction of new buildings, and 67% – projects for the energy modernization of existing ones. The picture is similar in Denmark, where 73% of construction projects have been halted due to the burden of construction costs, while repair work continues at the expense of the National Building Fund.

At the same time, the cost of buying a home in many European countries has exceeded 2008 levels, according to a recent European Commission technical report (Euro Area Housing Market Development: A Focus on Housing Affordability 2022). .

“House prices have accelerated during the pandemic, and prices today are higher than they were before the global financial crisis began in 2008. Annual price growth exceeds 10% in the Eurozone and 30% in eight of its countries. According to the committee’s estimates, housing prices are currently inflated in more than half of the eurozone countries (…). House price growth outpaced income growth in 21 member countries, by more than 20% in 11 of them. The technical report points to the negative impact of this situation on the economy (because borrowing housing at such high prices “undermines growth”) and society.

“Recent studies have revealed serious burdensome trends in the housing sector due to new risks such as the energy crisis and international events,” says Gavriel Amitsis, professor of social security law at the Faculty of Business Administration at the University of West Attica and director. ” Social Management Research Laboratory, which is Housing Europe’s science partner in Greece. “We see this even affecting countries that have developed social housing systems, so it’s fair to ask how this will affect the rest of us.”

The cost of buying a home has now exceeded 2008 levels in many European countries.

What will be the consequences for Greece? “Already, the growth of the private rental market is significant and affects a large part of society that does not have sufficient income to meet housing needs. They are currently included in the rent subsidy program (a subsidy of 70 to 200 euros per month) and receive some additional benefits such as heating allowance and social tariff. Considering that home ownership in our country remains at 75%, and an additional 3-4% is covered by special forms of subsidized housing (for example, for refugees), the first question that arises is how much of the remaining 21-23% of the population will be able to cover increased housing costs. The second question concerns 75% of own housing, which has also been affected by the energy crisis and part of it will be in energy poverty.”

“Undoubtedly, this will be a huge problem, because Greece is in first place in the list of how much housing costs burden a household, and in third place in Europe for energy poverty,” says Michalis Gudis, director of the Heinrich Bell Foundation’s office in Greece ( which supported the AUTH study on social housing in Thessaloniki).

“In countries where there is a social housing safety net, the state knows who is vulnerable, what the characteristics of households are, and can intervene with long-term measures. In our country, in addition to the Excoionamo program, which is very positive, the housing problem is solved through subsidies. What is missing is an organized approach adapted to the new reality. A national housing policy plan must be developed immediately that recognizes the citizen’s right to decent housing and sets long-term goals such as mobilizing the dormant building stock for social housing and creating a new one, intervening in the aging building stock through project savings. “.

“The EU is now looking at eligible investments in public and social housing, but they are tying these investments to having a strategy,” says Mr Amitsis. “In my opinion, the time has come for a separate housing ministry and public housing agency along the lines of the Irish model.” .