The European housing crisis: How Baby Boomers, Immigrants, and NIMBYs created the perfect storm

Alright, let’s dive into the absurd, mind-boggling mess that is the European housing crisis, shall we?

Because, if you thought Brexit was a disaster, wait till you hear how Europe has royally screwed up something as basic as putting a roof over people’s heads.

Spoiler alert: it's not just about building more houses, and it’s certainly not going to be fixed by some magical wand wave. No, this is the kind of trainwreck that only decades of short-sighted policy-making, demographic tantrums, and an absolute inability to learn from past mistakes can create. So, buckle up because this is going to be as bumpy as a Ryanair flight.

First off, let’s talk about the Baby Boomers.

Ah, the Baby Boomers—everyone’s favorite generation to blame for literally everything. But this time, it’s actually justified. See, back in the day, these folks had it all: free love, affordable homes, and governments that actually gave a damn about whether they had a place to live. After World War II, Europe went on a building spree that would make Bob the Builder blush. Millions of houses and apartments were constructed, all with the noble aim of ensuring that every family had a home. It was a beautiful thing—like watching a unicorn give birth to a rainbow.

But here’s the kicker: as soon as the next generation came along—smaller in number, mind you—governments suddenly decided, “Eh, maybe we don’t need to build so much anymore.” Because why plan for the future when you can just kick back and enjoy the moment, right? So, the public housing projects that had saved Europe from a post-war housing apocalypse were scaled down. Governments handed over the keys to the private sector, saying, “You’ve got this, don’t you?” And the private sector, ever the optimist, said, “Sure, we can totally handle this. What could possibly go wrong?”

Fast forward to today, and what do we have?

A generation of Baby Boomers who are refusing to die—God bless their stubborn hearts—while clinging to their homes like Jack clinging to that door in "Titanic". Meanwhile, the younger generations are left scrambling for whatever scraps they can find. It’s like a really depressing game of musical chairs, but instead of chairs, it's overpriced studio apartments, and instead of music, it’s the sound of millennials and Gen Zers crying into their avocado toast.

Now, let’s add another layer to this cake of doom: immigration.

Because nothing makes a housing crisis more challenging than throwing a bunch of people into a system that’s already hanging on by a thread. In the 1990s, Europe, being the welcoming place that it is, decided to open its doors to immigrants—many of whom were fleeing wars, poverty, and the kind of dictatorships that make you long for the good old days of medieval feudalism. Europe needed workers, and these immigrants were ready and willing to take on jobs that nobody else wanted. But—and here’s the plot twist—Europe somehow forgot that these workers would also need places to live. Genius, right?

Let’s take Paris and London as examples, because why not? In these cities, immigrants and their descendants make up a significant chunk of the population, particularly in social housing. And why wouldn’t they? After all, social housing was supposed to be the safety net, the cushion, the thing that stops you from falling flat on your face in the cobblestone streets of Europe. But now, thanks to years of neglect and a complete lack of foresight, this safety net has more holes in it than a block of Swiss cheese.

And it gets better. The private sector—who, remember, were supposed to be the heroes of this story—have been about as useful as a chocolate teapot. Faced with rising construction costs, bureaucratic red tape, and a labor market that’s tighter than a pair of skinny jeans after Thanksgiving, they’ve managed to do... well, not much. Building houses has become an exercise in futility, with developers more interested in luxury condos for the super-rich than affordable homes for the people who actually, you know, work for a living.

It’s almost like they forgot that poor people also need a place to sleep.

But don’t worry, Europe has a plan!

And by "plan," I mean a series of half-baked, contradictory policies that have all the effectiveness of a screen door on a submarine. In the Netherlands, for example, the government recently decided to cut taxes for social housing corporations by €1.7 billion. Sounds good, right? Except it’s basically like trying to put out a forest fire with a water pistol. The scale of the problem is so vast that this is barely a drop in the bucket. But hey, it’s something, right? Let’s all pat ourselves on the back and pretend we’re making progress.

Meanwhile, over in France, they came up with the Pinel Law, which offered tax breaks for people who build rental properties. Between 1999 and 2018, this led to the creation of 724,000 new homes. Not bad! Except, of course, that these homes were mostly for people who already had money to burn. So, while the rich got richer, the poor got a lovely view of the new apartments they couldn’t afford from their dingy, overcrowded flats. Bravo, France! Encore!

And if you think that’s bad, let’s talk about NIMBYism, the delightful acronym that stands for "Not In My Back Yard." This is the phenomenon where people—usually older, usually homeowners—do everything in their power to stop new housing developments in their neighborhoods. Why? Because they don’t want their precious property values to drop, or their views to be obstructed, or heaven forbid, they have to live near people who aren’t exactly like them. It’s the ultimate expression of selfishness wrapped up in a nice, respectable package.

Take the UK, where NIMBYism has become practically a national sport.

The planning system is so bogged down by local opposition that getting permission to build anything more ambitious than a garden shed is a Herculean task. And the best part? A lot of these NIMBYs are the very Baby Boomers who benefited from the post-war housing boom and are now doing everything they can to stop anyone else from getting a slice of the pie. It’s like winning the lottery and then burning down the shop so no one else can buy a ticket.

But wait, there’s more!

Because some experts, in their infinite wisdom, have suggested that the solution to the housing crisis might just be to... wait it out. That’s right, folks. The "silver tsunami" is coming—sooner or later, all those Baby Boomers will shuffle off this mortal coil, and their homes will flood the market, making housing affordable again. It’s the ultimate long game: just hang tight for a few decades and hope that you’re still around to see the benefits. If that’s not a plan, I don’t know what is.

Of course, this ignores the inconvenient truth that we can’t exactly put life on hold while waiting for an entire generation to die off. People need homes now, not in 30 years. And besides, when that "silver tsunami" finally hits, who’s to say it’ll make housing affordable? Maybe the prices will drop, or maybe we’ll just end up with a bunch of empty homes that no one can afford to maintain. It’s a gamble, and not the fun kind with flashing lights and free drinks.

So, what’s the way out of this mess?

Well, if you’re hoping for a quick fix, you’re going to be disappointed. There are no easy answers here—just a lot of hard choices and uncomfortable truths. Europe could try rethinking its approach to public housing, maybe even taking a page out of its own post-war playbook and building on a massive scale. But that would require political will, money, and, let’s be honest, a willingness to admit that maybe, just maybe, the private sector isn’t the magic bullet we’ve been led to believe.

Then there’s the thorny issue of immigration. Europe needs immigrants, that much is clear. But if it’s going to continue welcoming them, it needs to invest in the infrastructure to support them—starting with housing. Otherwise, we’re just setting ourselves up for more of the same: a never-ending cycle of demand outstripping supply, with the poorest and most vulnerable paying the price.

And let’s not forget NIMBYism.

Tackling this one is going to be tricky because it involves changing hearts and minds—a tall order when you’re dealing with people who are, shall we say, set in their ways. But if Europe is serious about solving its housing crisis, it’s going to have to find a way to make new developments more palatable to the public. Maybe that means relaxing planning laws, maybe it means incentivizing communities to accept new housing. Or maybe it just means being honest about the fact that everyone needs a place to live, even if it means a slightly less picturesque view from your back garden.

So, what’s going to happen next?

Well, if history is any guide, probably more of the same. Governments will continue to tinker at the edges, developers will keep building for the wealthy, and the rest of us will keep fighting over the scraps. But maybe, just maybe, if enough people start paying attention, we’ll finally see some real change. Or maybe we’ll just keep shouting into the void. Either way, I’ll be here with popcorn, waiting to see how it all plays out.

What do you think?

Are we doomed to live in this housing nightmare forever, or is there a glimmer of hope on the horizon?

Let’s talk about it—because God knows, something needs to change.

https://www.youtube.com/watch?v=TY53TCJ39DE&t=387s