Young Europeans are adopting unconventional paths to home ownership as property prices continue to outpace incomes across the EU.
Over the past decade, house prices in the European Union have grown 10% faster than incomes, according to European Commission research. In Spain, average salaries have risen 26% while property prices have surged 81%, intensifying affordability pressures in major cities.
Buying a Bedroom in Spain
In Spain, startup Habitacion.com sells individual bedrooms in shared flats for up to €80,000, roughly a third of the cost of a comparable one-bedroom apartment in central locations.
The company sold 200 rooms last year and reports a waiting list of 32,000 applicants, with listings across seven cities. Buyers complete compatibility questionnaires and must finance purchases with personal loans rather than traditional mortgages. Resales must also go through the company.
Founder Oriol Valls argues the model reflects shifting social patterns, including later marriages and smaller households, driving demand for cheaper, smaller living spaces.
Some prospective buyers remain cautious. One Madrid-based applicant said financing offered through the scheme carried interest rates around 6%, roughly double typical mortgage rates, and noted limitations for couples wanting to live together.
Co-Buying and Zero-Deposit Mortgages in the UK
In London, developer Fairview runs a “Buddy Up” scheme that connects friends seeking to co-purchase property. The company contributes up to £2,000 toward legal fees for joint buyers in London and surrounding areas.
Across Britain, France, Germany and Italy, banks have revived low- or zero-deposit mortgages that largely disappeared after the 2008 financial crisis. These products carry higher costs and typically require strong, stable incomes, but provide a route for buyers unable to accumulate large deposits.
A couple from West Yorkshire said a zero-deposit mortgage allowed them to purchase a home after receiving an eviction notice shortly after the birth of their child, describing the move as delivering long-term stability.
Investing to Offset Rent
Some tenants are investing elsewhere rather than buying where they live. In Madrid, where central properties can sell for around €1 million, one renter purchased a rental property in southern Spain through investment firm PropHero to generate income to offset his rent.
PropHero also offers fractional stakes in rental apartment buildings in Spain and Ireland starting from €20,000, targeting investors priced out of full ownership.
Real estate consultants say such models reflect worsening affordability rather than innovation alone, arguing that complex legal structures and higher financing costs are being accepted because conventional home ownership has become unattainable for many first-time buyers.
