Europe is facing a housing contradiction: widespread shortages of affordable homes on one hand, and a large share of underused living space on the other. New Eurostat data shows that one in three people in the European Union live in homes considered under-occupied, meaning they have more rooms than they need.
Under-occupation typically describes properties that exceed household requirements, often because older residents remain in larger family homes after children have moved out. Across the EU, 33.4% of people fall into this category, though national differences are striking.
Cyprus records the highest rate at 69.4%, followed by Ireland at 66% and Malta at 63.2%. The Netherlands (58.5%), Belgium (57%), Spain (54.3%), Luxembourg (52.2%) and Norway (51%) also show high levels. In contrast, Romania sits at just 8.1%, with Serbia, Turkey, Latvia, Greece and Croatia also reporting relatively low figures below 15%.
The pattern is not neatly divided along regional lines. Southern Europe shows sharp contrasts, with Spain among the highest while Italy and Greece sit much lower. Eastern and south-eastern Europe generally report lower levels of under-occupation, while parts of northern and western Europe trend higher.
Housing experts say the imbalance reflects deeper structural issues rather than simple shortages. The European Federation of National Organisations Working with the Homeless (FEANTSA) argues that policy responses focused on penalising under-occupation risk missing the real problem: the lack of affordable smaller homes.
A spokesperson for the organisation said measures like the UK’s “bedroom tax” did not work effectively because households often had no viable alternatives, leaving them financially penalised without improving housing supply. FEANTSA has instead called for greater investment in social housing and efforts to bring vacant properties back into use.
Ownership patterns also play a key role. Eurostat data shows that 40.5% of homeowners live in under-occupied homes, compared with 14.2% of tenants. Researchers say this gap reflects long-term settlement patterns, with owners more likely to remain in larger homes over time.
Sebastian Kohl, a professor at Berlin’s Free University, notes that homeownership is one of the strongest predictors of under-occupation, alongside demographic ageing and household size. Smaller households, particularly single-person and two-person homes, account for most under-occupied dwellings.
Income is another factor, with higher earners more likely to live in larger homes with spare rooms. Urban areas account for 41% of under-occupied housing, while rural regions and towns make up the remainder in roughly equal shares.
Researchers also point to inconsistencies in how countries define a “room,” which can affect comparisons. In some cases, kitchens are counted, adding further variation to the data.
Despite official classifications, perceptions differ. Studies suggest only two in five people in under-occupied homes actually believe their housing is too large, highlighting a gap between statistical definitions and lived experience.
