Housing supply issues affecting Europe -why?

Esho

According to the media, the lack of housing is affecting many European countries, not only Ireland.

What caused this?

quokula

A once in a lifetime global pandemic followed by the biggest land war in Europe in almost a century.

There was heavy disruption to building during the peak of the pandemic, and supply chains are still pretty screwed up as China is still locked down, while materials and resources from Russia and Ukraine have dried up which is continuing to push the costs of building up. At the same time there's a flood of refugees from Ukraine arriving across Europe pushing up demand.

thinkabouit

Immigration

Irelandsnumberone

https://www.boards.ie/discussion/2058252834/housing-supply-issues-affecting-europe-why

Greed

Drunken Oaf

Always amazes me the online ranting and raving about how good Europeans have it housing wise.

I wonder do French and German visitors to Ireland complain about how sh1t they have it with rented apartment living, at how the vast majority of city dwellers in Ireland live in spacious two storey terraced and semis with big back and front gardens, that while there is an affordability issue the houses only became truly out of control unaffordable for two brief periods in our history (2005 to 2009, 2021 to the present day).

It's worth remembering two things about our housing crisis:

• Outside of the areas close to our cities, housing is ridiculously affordable. Most counties in the BMW region have former council houses that would be affordable for a single person on relatively average wages.
• The vast majority of the population live in homes they purchased at reasonably sensible prices. Only the cohort buying between 2005- 2009 and 2021 to today (however long this lasts) got burned

HerrKapitan

Because EU leaders have been attending think-ins run by the WEF and Klaus Schaub, for years, that promote a great reset.

You will own nothing is one of their promotions for a new economic system. That includes owning property.

But its all just coincidence that world happenings happen to be advantageous for numerous of their goals.

Drunken Oaf

https://www.boards.ie/discussion/comment/119283047#Comment_119283047

Actually by late 2019 into early 2020 Dublin prices had started to flatline at rates which were pretty damn affordable. Current surge caused by increased savings (no pubs, holidays, restaurants, commuting costs, shopping for 2 years on and off) plus being the only country in the western world to mostly shut construction for a combined 6 months.

Private estates in D15 in 2020 averaging about 220 to 260.

Ex council about 160 to 200.

Now the ones that were 220 are looking for around the 300 mark. Ex council chancing their arm for as high as 270 (realistically probably go for 200 to 250)

Shoog

This problem has been a long time brewing and has a few components. It's redicoulously expensive to build in Ireland so there is little margin to build houses no one can afford. This has chocked off supply.

The main issue is that quantititivr easing has disrupted the market. You may still have to pay 5% to get a mortgage, but if your a investment company you can easily borrow endless amounts of money at zero interest. Since the best rate of return you can get on your free money is property, the vulture funds have been buying up everything that available and renting it back to the public at vast profit. Supply and demand means that people have to pay whatever the landlords ask. Many investment funds are simply buying up properties and leaving them empty till they flip them at the top of the market.

Recent immigration will also effect the supply of rental accommodation - but this is a minor factor in the bigger scheme of things.

Greed.

Rising costs for the construction materials of housing, including the costs involved for the labour involved. The regulation and taxation of the industry which further hikes up the costs involved. The regulatory nature of the Planning Authority, which makes it difficult for certain developments, but makes it easy for others... so, there is greed for authority, and control.

The overall cost of living in Ireland... whether it's the prices charged in shops, or the government charges/taxation on a wide variety of goods. Just think of the differences in price for common items, or even "luxury" items over a decade, two decades, etc. No way that the rises in costs should have been so strong over those periods without greed being involved.

It amazes me just how expensive Ireland has become over 2 decades. The same for other nations. When they become prosperous, prices go up.. sometimes a big hike, but usually, gradual increases every year to the point where nobody really notices or comments on it, until you realise that a bag of crisps or a chocolate bar (produced in Ireland) is now twice or three times the cost of twenty years ago. Or that a single visit to a doctor will cost you at least 50 euro, even if the doctor does nothing but to refer you elsewhere. A piece of paper from a solicitor costing similar.. or more.

Everywhere you can see the prices increase over time... it's just that most people realise they can't stop it from happening. If only we had politicians who cared, but we don't.

It's nuts.

Housing supply stalls for many reasons. Throughout Europe, most towns/cities were not designed for large populations with modern considerations to quality of life. As such, they quickly become congested, housing prices soar, and people are squeezed to the outskirts, with the city expanding as the value within the city increases, and more are pushed further outwards. That's normal, and the case pretty much everywhere. This focus on cities in modern times is what's causing most of the problems regarding housing (along with the expectation by people that they shouldn't be squeezed out due to their low incomes).

Dante

Large investment funds buying up all residential property is the biggest issue.

ancapailldorcha

https://www.boards.ie/discussion/2058252834/housing-supply-issues-affecting-europe-why

The logical consequence of pursuing infinite growth and not investing in housing. You either build social housing or you transfer masses of taxpayer money into private landlords' hands.

I think we need a serious investment in social housing. Not forever homes for people to sit on their asses in but basic flats in areas of high demand for single people and couples at affordable rents. Fleecing people during the best years of their lives isn't great for long term economic viability.

Wanderer78

https://www.boards.ie/discussion/2058252834/housing-supply-issues-affecting-europe-why

financialisation of our property markets! its starting to collapse! the end!

Pussyhands

Immigration.

Go to any open viewings in Dublin and it's nearly all foreigners.

Go to any ad posting on facebook accommodation groups and it's nearly all foreigners being tagged in the comments etc.

Yes, it's not their fault, but a child driving a car isn't their fault either but you need to stop them because it's the right thing to do.

asdfg87

https://www.boards.ie/discussion/comment/119282965#Comment_119282965

Most people in the world want to live in the western world where we have all the gagets. Boris Johnson is not totally wrong in his strategy but he is going the wrong way about it.

The western world needs to invest in the poorer countries to encourage people to make a life in their homeland instead of whinging about people wanting to make their lives better, thats there duty to themselves anf their families.

The original immigrants were slaves and the wheel just keeps turning.

Esho

https://www.boards.ie/discussion/comment/119282969#Comment_119282969

Greed how? More houses , more sales more profit is how I reckon greed should work, but it isn't it.

Esho

Yes definitely, but the supply issues were coming down the track before COVID even.

REITs just added fuel to it

Esho

https://www.boards.ie/discussion/comment/119282965#Comment_119282965

That makes sense for Ireland but is it the same in the rest of Europe too?

Cookie_Monster

too many people

asdfg87

https://www.boards.ie/discussion/comment/119283098#Comment_119283098

I agree, can i choose who goes? there be less bosses here and boards be a better place.

Esho

Good one - yes, it makes financial sense to leave them empty til they are flipped, not to cheapen the current rents or end price

asdfg87

This thread reminds me of a conversation i had about 6 months ago. I was giving this guy a lift home from a funeral. In general chatter we were talking about a wealthy person making big investment when he was about pension age (mid 60) Because this guy is financially very well off i questioned why would he want to be investing to make money he didn't need. The person travelling with me family always had wealth.

He said "sure you can never have enough money" Kinda sums up alot of IRISH people.

HerrKuehn

Germany has many of the same issues we have here with housing. The proportion of social housing to total housing stock is even lower than here (5% vs 10% in Ireland). It is true that there are long term tenancies, but it is also the case that landlords can have a property back for their own use (it happens less than here as a lot of the properties are owned by large rental companies). I am sure Una Mullally/Rory Ahearne would say the problems in the Germany are caused by FG too somehow (more specifically Leo in the case of Una, she seems to think he is the source of all problems for some reason).

Fr Tod Umptious

https://www.boards.ie/discussion/comment/119282969#Comment_119282969

But where does the greed start and finish.

The family trying to build the house think the sub contractors (electricians, plumbers etc) are greedy with the prices they charge.

The sub contractors think their suppliers are greedy because of what they charge them for materials.

The building suppliers think the wholesalers and distributors are greedy because of the prices they charge.

The wholesalers think the manufacturers are greedy.

The manufacturers think the raw materials suppliers are greedy.

Everyone needs to make a profit, while at the same time remaining competitive in the market.

asdfg87

https://www.boards.ie/discussion/comment/119283653#Comment_119283653

https://www.irishtimes.com/opinion/berlin-referendum-shows-the-way-on-fixing-ireland-s-housing-crisis-1.4686524

asdfg87

https://www.boards.ie/discussion/comment/119285663#Comment_119285663

Thats what happened in Germany and happening here for 5 years to my knowledge, bought some from NAMA who are taxpayer funded.

Shoog

Quantities easing has destroyed any semblance of fairness in capitalism.

asdfg87

https://www.boards.ie/discussion/comment/119285728#Comment_119285728

And the people and elected Government are very happy with this arrangement, it would nor have happened if TRIOKA were here.

Brucie Bonus

We all but stopped building social housing. We doubled down on relying on the private market. So supply is limited and even those earmarked as social or affordable can be expensive and the state has allowed that and will subsidise it by giving away land cheaply, subsidies and the requirement to subsidies working people so they can rent.

Add to that varying external factors, but we always manage our own brand of disaster like we did after the celtic bubble popped.

Its short sighted greed.

Dyr

https://www.boards.ie/discussion/comment/119283098#Comment_119283098

Europes native populations are dwidling in a manner that is terminal if its continues as is

Perhaps you can explain how this is causing there to be too many people

John Doe1

https://www.boards.ie/discussion/2058252834/housing-supply-issues-affecting-europe-why

A policy of keeping supply low to benefit landlords.

Also, lax immigration policies.

Jinglejangle69

https://www.boards.ie/discussion/comment/119286931#Comment_119286931

The highest number of commencements this year since records began.

Ubbquittious

https://www.boards.ie/discussion/comment/119283048#Comment_119283048

There are housing shortages in Greenland out of all places. The least densely populated country in the world, similar to here they have new building codes coming out all the time that make construction prohibitively expensive for a lot of people. They operate a lottery system to see who gets the right to build a brand new house in Nuuk

Planning laws are the most expensive thing you'll ever pay for that you won't see on any itemised bill. Not so awful long ago you could build any kind of house on your land here. If all those planning laws were got rid of there will be some problems, like your neighbour might decide to build an eyesore or a 'G' rated house.

But at least you won't spend years working and paying interest on inflated house prices that exist purely due to Government interference.

Even if you live under a bridge and you never pay for accommodation in your life you are still affected - the price of housing is built into almost every single item you buy. A postage stamp costs what it costs partly due to the fact that all employees of An Post need (on average) a €300k stone box to call home.

asdfg87

https://www.boards.ie/discussion/comment/119286959#Comment_119286959

Where did you get this info?