Standfirst: Homeownership rates among younger Europeans have fallen compared with earlier generations, OECD data shows. Higher house prices, slower wage growth, tighter mortgage rules and delayed entry into work are making it harder for first-time buyers, with Ireland recording one of the sharpest declines.
Young Europeans are increasingly being locked out of homeownership as property prices rise faster than incomes and borrowing becomes more expensive. New OECD analysis shows that younger generations are less likely to own a home at the same age than people born in earlier decades.
The figures provide important context for Europe’s housing crisis, although national markets differ significantly. In some countries, homeownership rates have risen because of historic housing privatisation, while others have experienced steep declines since the 1990s.
Homeownership has fallen among younger generations
OECD data covering an average of 20 EU countries shows a clear generational shift. By age 32, around 60% of people born in 1975 owned a home. That figure fell to 58% for those born in 1980 and 52% among people born in 1985.
At age 29, the homeownership rate declined from 52% for the 1980 cohort to 45% for those born in 1985 and 41% for people born in 1990. The gap is also visible among younger adults: by age 23, ownership stood at 32% for people born in 1985, compared with 26% for the 1990 cohort.
Earlier generations followed a more stable pattern. By age 44, homeownership rates were broadly similar among people born in 1965, 1970 and 1975, at roughly seven in ten.
Why are young Europeans struggling to buy homes?
The OECD points to several connected causes rather than a single explanation. Mortgage access became more difficult after interest rates began rising in 2021, increasing the cost of borrowing for households seeking to buy.
House prices have also increased faster than incomes in many countries. Even prospective buyers who can assemble a deposit may not earn enough to qualify for a mortgage large enough to purchase a suitable property close to work or family.
Other factors include:
- Slow wage growth, which reduces the ability to save for a deposit.
- Higher education participation, which can delay entry into the labour market.
- Less secure employment for some younger workers.
- Stricter mortgage lending standards after the 2008 financial crisis.
- Insufficient housing construction in high-demand areas.
- Rising rents, which make saving for a deposit more difficult.
The result is that affordability is not only a deposit problem. The relationship between house prices, earnings and borrowing capacity has become a central barrier for first-time buyers.
Ireland records one of the largest declines
Ireland saw the biggest fall identified in the OECD comparison of people in their 30s. Homeownership declined from 81% in the mid-1990s to 53% in the most recent period available, representing a 28 percentage-point drop.
The comparison uses 1995, or the closest available year, against the latest pre-COVID year or 2022/23, depending on the country. It therefore does not represent a single-year change or a live 2026 estimate.
For Irish households, the findings underline how the housing crisis affects both affordability and access to credit. Rising prices and rents can make it difficult for younger workers to save, while mortgage eligibility depends on income, deposit levels, interest rates and lender assessments.
Large declines across several European countries
Ireland was followed by Greece, where homeownership among people in their 30s fell from 78% to 58%. The United Kingdom recorded a decline from 74% to 56%, while Spain fell from 77% to 60%.
Other substantial decreases were reported in:
- Denmark: down 13 percentage points.
- Austria: down 11 percentage points.
- Luxembourg: down 10 percentage points.
- Germany and Switzerland: down 9 percentage points each.
The pattern suggests that the affordability challenge is widespread, but its scale is shaped by national housing supply, labour markets, mortgage systems and historic policy decisions.
Why some countries recorded increases
Not every country followed the same trajectory. Slovakia recorded a rise in homeownership among people in their 30s from 38% to 88%, while Czechia increased from 36% to 76%. Poland also recorded a substantial increase, from 57% to 77%.
These figures reflect the legacy of post-socialist housing transitions. In Slovakia and other countries, much of the housing stock was previously state-owned. After 1989, residents were able to purchase flats at nominal prices, leading to widespread privatisation.
Those historic changes make direct comparisons with western European housing markets difficult. A high ownership rate may reflect earlier transfers of existing homes rather than improved access for today’s first-time buyers.
Why the European picture needs careful interpretation
The OECD data is valuable for showing long-term trends, but national experts have questioned some country-level comparisons. In the Netherlands, for example, separate housing survey data shows that ownership among 25- to 34-year-olds declined from 50% in 2002 to 44% in 2024.
This illustrates why age groups, survey methods and reference years matter. A country may show a long-term increase compared with the 1990s while younger adults still face falling ownership rates after the financial crisis.
France was the only one of the five largest economies included in the comparison to record an increase, rising by four percentage points.
What happens next for Europe’s housing crisis?
The data places housing affordability firmly within wider European economic and social policy debates. National governments remain responsible for many housing measures, including planning, construction, taxation and rental regulation. However, EU-level policies on employment, economic coordination, energy efficiency and access to finance can also affect household costs.
For young buyers, the central issue is whether incomes and housing supply can catch up with property prices. Without more affordable homes in areas with jobs and transport, lower interest rates alone may not resolve the problem.
The key takeaway: Europe’s homeownership gap is increasingly generational. While historic conditions produced high ownership in parts of central and eastern Europe, many younger adults elsewhere face a combination of expensive housing, limited supply and borrowing constraints that make buying a home substantially harder than it was for previous generations.
