Rising Construction Costs, High Inflation Worsen Housing Shortage in Major European Cities
(MENAFN) The housing market in major European cities is facing a significant challenge due to the imbalance between supply and demand. Rental payments are skyrocketing, and the situation is being worsened by rising construction costs caused by high inflation and interest rates. Although governments are trying to find solutions to limit the rise in rents, it is predicted that high inflation will continue to suppress rent and housing prices.
According to research by Eurofound, an institution affiliated with the EU, the housing shortage is exacerbating the housing insecurity experienced by private sector tenants. The rising costs of construction and inflation, coupled with increasing interest rates, are making it harder for families to find affordable housing. In some provinces, families are spending more than 50 percent of their monthly income on housing and heating, further exacerbating the problem.
The pressure on rents has increased tremendously in recent months with the influx of immigrants from Ukraine, particularly in big cities like Berlin, making it challenging for those seeking flats to rent. As a result, families in many European cities, such as Berlin and London, see buying a house as impossible.
The housing shortage is not only causing economic problems, but it is also having a significant impact on people's lives. Families are struggling to find suitable housing, and many are forced to live in cramped conditions or in areas with limited access to essential services. The situation is particularly challenging for low-income families who are unable to afford the high cost of living.
Governments are working to address the housing shortage by implementing policies to limit rent increases and increase the supply of affordable housing. However, it is clear that more needs to be done to address the root causes of the problem, such as rising construction costs and inflation. Unless significant action is taken, the housing shortage in major European cities is likely to persist, causing continued economic and social problems for families and communities.
MENAFN07052023000045014228ID1106191710
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.