European rent crisis could become a defining issue

Significance

Rental rises are most acute in major cities, where institutional funds with substantial wealth have increased their weight in the rental market, making housing less affordable. The COVID-19 pandemic has exacerbated the renting crisis, with many of those who rent in cities disproportionately affected by the economic effects of the lockdowns.

Impacts

• The return to ‘normal’ following the COVID-19 crisis will see other issues, like the rent crisis, grow in political salience.
• State investment in housing may suffer as countries prioritise spending on public health and education following COVID-19.
• Building costs have risen substantially in cities including Geneva, Zurich, London and Dublin over the last few years.