The housing crisis is not just about homes, it's about Cyprus’ future

By Andros G. Karagiannis*

The housing crisis is no longer a temporary economic difficulty. It is evolving into one of the European Union’s (EU) most significant public policy challenges, affecting social cohesion, demographic renewal, economic competitiveness, and the sustainable development of both cities and rural areas.

For those who have served in local government, housing insecurity has never been just a statistic. It has been a daily reality reflected in the anxiety of young people struggling to secure a decent home and start a family.

The EU now recognizes that housing cannot be treated solely as a commodity or an investment product. The European Commission has made affordable housing a key priority of its social and development agenda, promoting initiatives aimed at increasing housing supply, making use of European funding tools, and strengthening cooperation between European institutions, member states, and local authorities.

At the same time, Eurostat data confirms that rising housing costs are placing increasing pressure on more households, particularly young people, single-parent families, and vulnerable social groups.

International experience shows that the success of housing policy depends on effective cooperation between central governments and local authorities.

Spain is a notable example. In Barcelona, policies were introduced to limit new short-term rental licenses, with the aim of returning homes to the long-term rental market. Meanwhile, the Basque Country has long maintained one of Europe’s most comprehensive systems of social and protected housing.

These interventions go beyond simply managing the housing market. They form part of a broader strategy to protect social cohesion and quality of life.

Cyprus also has important examples of good practice. The Housing Revitalization Scheme for mountainous, remote, and disadvantaged areas demonstrated that housing policy can serve as a tool for regional development, demographic support, and social cohesion.

The success of the scheme was based not only on state funding but also on close cooperation between the Ministry of Interior and local authorities, which acted as the link between public policies and the real needs of local communities.

This experience highlights the importance of multi-level governance, a fundamental principle of European public policy.

The EU provides the strategic framework and funding tools. The state creates the institutional and legislative environment. Municipalities and communities transform policies into practical solutions for citizens.

The housing crisis cannot be addressed through fragmented measures or isolated subsidies. It requires coordination, long-term planning, and shared responsibility across all levels of government.

The public debate should no longer focus only on rental prices or the number of homes being built. The real success of a housing policy is measured by whether young people can remain in their communities and start families; businesses can find workers; schools can maintain their student populations; and local societies can remain vibrant.

In this sense, housing policy is simultaneously a social, developmental, demographic, and educational policy.

The human dimension of the crisis becomes even clearer through the lens of education.

Behind every figure are children who move homes repeatedly, families struggling to secure stable housing, and young people delaying starting a family because of financial uncertainty.

Housing insecurity does not only affect household budgets. It also affects school performance, mental well-being, equal opportunities, and ultimately the cohesion of society itself.

Affordable housing is not a luxury or merely a social benefit. It is an investment in democracy, social cohesion, and sustainable development.

Cyprus today has the experience, institutions, and European tools needed to develop a comprehensive housing strategy centered on people, with a strong role for local government.

Societies that ensure young people have access to decent housing are not only investing in buildings. They are investing, above all, in citizens’ trust, their demographic future, and their own long-term prosperity.

*Mr. Andros G. Karagiannis is the former mayor of Deryneia.