Europe is currently facing a housing crisis that is prompting nearly a quarter of its citizens to consider emigrating in search of more affordable living conditions. This issue is particularly acute in Ireland, where a significant number of people are contemplating moving to another country due to the decreasing levels of affordability.
A survey conducted by Opinium for real estate group RE/MAX, which involved 20,000 Europeans, revealed that 33% of Irish individuals are thinking about relocating to escape the housing affordability challenges in the country. This figure is surpassed in Europe only by Malta.
According to Michael Polzler, CEO of RE/MAX Europe, the affordability crisis in Europe has reached unprecedented levels. The survey found that a fifth of respondents are either struggling or really struggling to afford their housing costs, while another 37% are just about managing with affordability. The proportion of individuals facing affordability issues in Ireland is among the highest in Europe.
The history of Ireland has been marked by emigration, from the devastating famine in the mid-19th century to more recent waves of departures driven by financial pressures following the collapse of the “Celtic Tiger” during the global financial crisis. Despite strong economic growth and a surplus, the decline in affordability in Ireland could trigger another wave of emigration.
The lack of housing stock in Ireland is a major contributing factor to the current crisis. The country’s central bank estimates that 52,000 homes need to be built annually to meet demand. Meanwhile, the average rent in Dublin has reached €1,829 per month, leading to a rise in homelessness.
RE/MAX’s Polzler pointed out that the common issue across Europe is the failure of governments to facilitate more housing construction. Tightening belts has become a common strategy for many European homeowners to cope with rising mortgage costs, which have been exacerbated by increasing interest rates and inflation.
The survey also revealed that many respondents have cut back on discretionary spending, such as going out, holidays, and subscriptions to services like Netflix and Spotify. Michael O’Leary, CEO of Ryanair, noted a decrease in demand for flights, indicating a possible recessionary trend among European passengers.
In conclusion, the housing crisis in Europe, particularly in Ireland, is driving people to consider emigrating in search of more affordable living conditions. The lack of housing stock, rising rent prices, and tightening belts among homeowners are all contributing to the challenges faced by individuals across the continent. Governments need to prioritize and facilitate housing construction to address this pressing issue.