Rising housing and rent prices in Europe are increasingly limiting people’s access to adequate housing and increasing the risk of homelessness, according to the European Union Agency for Fundamental Rights (FRA)’s annual report, Fundamental Rights Report: Challenges and Achievements in 2025.
According to the FRA, between 2015 and 2024, home prices in the EU rose by an average of 53%, while rents increased by nearly 17%. The agency notes that the housing crisis is becoming not only an economic issue but also a human rights issue, as the right to adequate housing is becoming increasingly inaccessible to vulnerable groups.
“Rising costs are affecting many people and families, as more and more people cannot afford housing and are at risk of becoming homeless,” said FRA Director Sirpa Rautio.
According to an estimate by the European Federation of National Organizations Working with the Homeless (FEANTSA), cited by the FRA, there were nearly 1.3 million homeless people in the EU in 2025. The agency identifies young people, private-market renters, low-income families, migrants, refugees, and people already on the brink of social exclusion as particularly vulnerable.
The FRA notes that more than two-thirds of EU residents own their homes, yet among those with incomes below the at-risk-of-poverty threshold, fewer than half are homeowners. This exacerbates inequality: rising housing prices increase the wealth of property owners but worsen the situation for renters and those without access to mortgages.
The report covers all 27 EU countries, as well as three candidate countries or countries potentially linked to the European integration process—Serbia, Albania, and North Macedonia.
The housing crisis is becoming one of the key social challenges for Europe. Rising housing prices are already affecting not only the real estate market, but also demographics, labor mobility, social stability, and trust in public institutions.
According to data from Idealista, the cost of renting a home in Spain hit an all-time high in May 2026, averaging 15.1 euros per square meter per month.
Rents rose by 0.6% over the month and by 4% year-over-year. The previous high was recorded in early 2026, when the average rate stood at around €15 per square meter. Thus, the Spanish rental market continues to grow despite the government’s attempts to curb pressure on the housing market.
The rise in prices is linked to a persistent imbalance where demand exceeds supply, particularly in major cities, tourist regions, and areas with a high concentration of jobs. The market is also influenced by a shortage of affordable rental housing, the shift of some apartments to short-term rentals, rising demand from migrants and students, as well as caution among landlords following tighter regulations.
In April 2026, the average rent in Spain was €15 per square meter, which was 5.2% higher than in April 2025. In May, the figure rose to €15.1 per square meter, though the annual growth rate slowed to 4%.
The most expensive markets remain the major economic and tourist hubs. In Madrid, the average rent in April reached €23.3 per square meter per month, which is 8.6% higher than a year earlier. This is one of the highest levels among the country’s largest markets.
At the provincial level, rents rose across nearly all of Spain in the spring of 2026. Prices rose in 49 of 50 provinces, with the sole exception being Barcelona, where a decline of 8.5% was recorded. The largest increases were recorded in Lleida, Toledo, Guadalajara, and Segovia.
High rental rates are intensifying social and political pressure surrounding the housing market. In recent years, Spanish authorities have been discussing restrictions on short-term rentals, expanding affordable housing, regulating rental rates in high-demand areas, and offering incentives to landlords willing to rent out apartments at moderate prices.
For foreign buyers and investors, rising rents mean continued interest in Spanish real estate as an income-generating asset, but at the same time, they increase regulatory risks. In regions with a housing shortage, authorities may tighten rules for vacation rentals and impose additional restrictions on short-term rentals.
Spain remains one of the largest real estate markets in Southern Europe. Rental demand is driven by major cities, international migration, tourism, the student sector, and the remote work market. The tightest market conditions persist in Madrid, Barcelona, the Balearic Islands, the Canary Islands, Malaga, Valencia, and other popular cities and coastal regions.
The average cost of long-term housing rentals in Spain reached a historic high of EUR15 per square meter per month in April 2026, according to the Idealista portal.
According to analysts, rents have risen by 5.2% over the past year. However, the growth rate has been the most moderate since the summer of 2022, indicating a gradual slowdown in the market following several years of sharp rate increases.
Despite the slowdown, the market remains tight. The main reason is the persistent gap between supply and demand. In major cities, tourist regions, and university centers, demand is driven by local renters, foreign workers, students, digital nomads, and short-term rentals. At the same time, new supply is entering the market slowly, and some landlords prefer tourist rentals over long-term contracts.
For tenants, record-high prices mean housing is becoming even less affordable. The problem is particularly acute in Madrid, Barcelona, Valencia, Málaga, and the Balearic and Canary Islands, where rental demand is driven not only by domestic migration but also by foreigners. According to Idealista, rents in Spain rose to EUR15 per square meter in April, though no longer at the double-digit rates seen in previous years.
The migration factor remains one of the key drivers of the market. According to data from Spain’s National Institute of Statistics, as of January 1, 2025, the largest groups of foreigners in the country were citizens of Morocco—968,999 people—Colombia—676,534—and Romania—609,270. Other major groups include immigrants from Venezuela, Italy, China, Peru, the United Kingdom, Ukraine, and other countries.
In 2024, the number of Colombian citizens grew the fastest—by 98,057 people—followed by Venezuelans—by 52,555— and Morocco—by 48,306. At the same time, the number of Ukrainian citizens, according to INE data, decreased by 7,907 people, which may be due to changes in residency status, the relocation of some Ukrainians to other countries, or naturalization.
The influx of foreigners is driving up demand for rentals, particularly in cities with job opportunities, universities, and a developed service sector. In the fourth quarter of 2025, the main groups of new immigrants to Spain were citizens of Colombia, Venezuela, and Morocco.
Investment demand is creating additional pressure on the market. Foreign homebuyers in Spain pay significantly more than locals: in the second half of 2025, non-residents purchased homes at an average of EUR 3,242 per square meter, foreign residents at EUR 1,963, and Spanish citizens at EUR 1,839. This also affects the rental market, as investment purchases are often aimed at renting out the property.
Thus, Spain faces a double challenge: rents have already reached record levels, but a structural supply shortage does not yet allow for a rapid decline in prices. Even a slowdown in annual growth to 5.2% does not signal a market reversal, but rather indicates a shift from sharp price increases to a more stable, though still expensive, level of rents.
JSC “Ukrgazvydobuvannya,” part of the “Naftogaz” group, contributed UAH 5.4 billion in royalty payments to the country’s consolidated budget based on its operations in January–March 2026, the company reported on Tuesday.
“In accordance with current legislation, 5% of this amount, or 270.5 million UAH, was allocated to local and regional budgets in the regions where the company conducts hydrocarbon production,” the company noted.
The royalty funds are distributed among the regions as follows: Kharkiv – 150 million UAH, Poltava – 96.6 million UAH, Lviv – 13.3 million UAH, Dnipropetrovsk – 3.4 million UAH, others – 7.2 million UAH.
As reported, in 2025, the state-owned company “Ukrgazvydobuvannya,” the largest player in the market in terms of gas production volume, incurred a loss of 5.5 billion UAH, compared to a profit of 52.6 billion UAH in 2024.
The vacation rental market in neighboring Bulgaria may see a significant increase in housing prices—by approximately 25–30%. According to the Novinite website, the reason cited is the entry into force on May 20, 2026, of new European regulations for short-term rentals, which could result in up to half of the listings on major online platforms being removed due to non-compliance.
According to market participants, the main effect will be linked not to a surge in demand but to a reduction in supply. If some small-scale landlords exit the market due to new administrative requirements and rising costs, the number of legally available apartments in popular resorts will decrease, which will drive prices up. At the same time, representatives of the hotel sector believe that the market will become more transparent, and consumers will be better protected from informal and misleading offers.
Based on available market indicators, in 2025, renting resort accommodation in Bulgaria remained relatively affordable by EU standards. As of April 2026, average rental rates in resort areas ranged from approximately 5 to 11 euros per square meter per month, depending on location and type of accommodation. This means that a 35–40-square-meter studio typically cost around 175–440 euros per month, while a 55–70-square-meter apartment cost approximately 275–770 euros per month.
According to Serbian Economist, Montenegro’s long-term residential rental market entered a cooling phase in 2026: following the rapid growth of previous years, oversupply began to shift the balance in favor of tenants.
Currently, studios in Montenegro are offered at an average price of 300–400 euros per month, one-bedroom apartments at 400–800 euros, two-bedroom apartments at 600–1,200 euros, and houses starting at 1,000 euros. In the premium segment, villas and luxury properties can cost from 2,000 to 10,000 euros per month and higher.
The main reasons for the market stagnation are the decrease in the number of foreign residents staying in the country long-term and the accumulated oversupply. According to a representative of a local real estate agency, property owners are increasingly finding that apartments remain vacant longer than they did a year ago, while tenants have more room to negotiate prices and terms.
The market is no longer operating according to the 2022–2024 model, when owners could quickly rent out properties amid an influx of foreigners and limited supply. Now, in a number of locations, tenants are increasingly choosing between several options, securing discounts, or demanding better terms regarding the lease, furnishings, and utility bills.
For Montenegro, this shift is significant not only for the housing sector but also for the broader demand model, which in recent years has relied heavily on the influx of foreigners, relocators, and investors. If the number of long-term tenants continues to decline, some landlords may increasingly switch to short-term rentals or adjust their price expectations downward.
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