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Europe's housing shortages are even worse than America's

Samuel Hughes · 16 Jun 2026

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Housing affordability is almost the direct inverse of how many new homes are built, so the answer is to build more houses.

Without densification restrictions, housing shortages will only ever be serious in cities where land is really intensely scarce, as in Hong Kong.

Also said by Daniel Herriges, Noah Smith, Pieter Levels

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Samuel Hughes did not write this page.

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  1. In fact, European housing shortages are generally worse than America’s.
  2. But this effect is far too small to explain the increase in house prices in Europe since 1914, when, after all, most urban continental Europeans lived in flats.
  3. Without densification restrictions, housing shortages will only ever be serious in cities where land is really intensely scarce, as in Hong Kong.
  4. In fact, zoning was invented in Europe, in Germany and Austria-Hungary, in the late nineteenth century.
  5. I suspect the same is often true in the rest of Europe: NIMBYism is the ultimate reason why the French and German states don’t solve their housing shortages through unbanning densification, but since the claims of the NIMBYs have been preemptively conceded by everyone, NIMBYism has basically remained latent.

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