Younger generations in the EU are facing weaker income prospects and greater difficulty accessing affordable housing than earlier cohorts did at the same age.
A study by the European Commission compares people’s income, homeownership and housing affordability across generations when they were at the same stage of life, and links the findings to demographic change in Europe, the Commission revealed on Thursday.
Recent generations — particularly younger adults — have seen “growing income challenges” and more limited access to affordable housing, the report found.
Earlier-born cohorts generally improved their situation compared with the previous generation, while younger groups are experiencing stagnant income, a rising risk of poverty and a higher prevalence of low-paying jobs.
Income inequality within younger age groups is also widening, according to the report. It found these income shifts coincide with disadvantages in the housing market, with younger people less likely to become homeowners than previous cohorts.
As renters, younger adults are more likely than before to face high housing costs.
Demographic shifts linked to income and housing pressures
The report links changes in income and housing outcomes to trends including an ageing population, smaller household sizes and movement to urban areas.
These trends are associated with greater barriers to homeownership and wealth accumulation for larger parts of recent generations.
The full report — *Intergenerational fairness in the EU: income and housing dynamics in the context of demographic change* — is published by the European Commission’s Joint Research Centre.
