How to solve Europe's vacancy problem
05 February 2025
Yes, you read that title right. While major cities face severe housing shortages, Europe also has a vacant property problem. In 2011, an estimated 38 million homes stood empty across the continent. While there are no more up-to-date numbers, it's likely to be still true: OECD data from 2021 revealed that over 10% of homes in Hungary, Cyprus, Slovenia, and Finland are vacant. As of May 2022, two million apartments in Germany were empty. This is especially the case in rural areas, like in Italy and Spain, where entire villages are deserted as people move from the countryside to larger urban areas.
This emptiness poses risks for municipalities and surrounding residents. Disinvested neighbourhoods suffer from greater exposure to mould, lead, and asbestos, with abandoned areas inviting pollution, violence and crime. Vacant buildings reduce the value of surrounding properties, affecting individual wealth and municipal tax revenue. Unused buildings also cost money for maintenance and public safety, so it is often more profitable for authorities or companies to simply demolish them.
Where to go from here?
The German government recently proposed a plan to bring more vacant and decaying buildings in rural areas, particularly prevalent in East Germany, into use. They plan to make affected areas more attractive places to live.
To do so, improving public transport, education, jobs, and digitalisation are crucial. Energy-efficient renovation is incentivised to counteract vacancies while achieving climate targets. Vacant buildings can be turned into desperately needed affordable and sustainable housing or used to address homelessness.
Some countries, such as France and Spain, incentivise landlords through tax cuts, grants, and subsidies to activate empty housing or convert it to social housing. Other countries try to solve the issue with penalties: Ireland and some Austrian states charge vacancy taxes on unoccupied properties, and in Catalonia, cities can straight-up seize long-term vacant properties. In Italy, meanwhile, several municipalities famously offer vacant houses for €1.
Urbanisation is a major cause of vacant properties across rural areas in Europe, but it's not the whole story. Many European countries have ageing and declining populations, reducing demand for rural housing. As industries shrink or disappear from rural areas, investment, jobs, and people go with them. Local authorities and property owners often lack the funds to renovate buildings, leaving many of these in states of disrepair.
 | Toyah Höher It seems ridiculous that Europe simultaneously deals with housing crises and vacancy issues. Yet, there are many ways to turn this problem into an opportunity. First and foremost, rural areas need to become more attractive to residents and investors. Though not likely to solve housing shortages in cities, combating property vacancy is important to urban and rural development. If handled smartly, it can become a social and environmental opportunity offering wins for everyone involved. |
Welcome to The European Correspondent
Europe lacks true European media: in Germany alone, there are more media devoted exclusively to football than news outlets specialising on Europe. The established players mainly focus on Brussels and European institutions. The European Correspondent aims to change that. We cover the whole of Europe and write for a community of citizens who want to look beyond their own national borders. Without European journalism, there is no European civil society.
〉Read our manifesto
〉The stories we would like to write for you
Become a donor!
The European Correspondent is fully funded by its readers. We can only produce the newsletter with your support - and work towards the bigger project: building true European media. Donate now!
With your help, we can create true European journalism. Thank you!
We are non-profit. Every donated € goes directly into The European Correspondent.