EU reveals countries with highest housing prices, growth higher than incomes

The rise in housing prices in Europe is being seen as a strong concern in the countries of the Union. However, figures show that Portugal has emerged as the country with the most overvalued property prices.
A European Commission report estimates that "the average overvaluation is most significant in Portugal, at around 25%, exceeding other overheated property markets in Sweden, Austria or Latvia."
It further adds that growth is happening much faster than incomes. “Price growth has been stronger than income growth, reducing affordability for potential buyers, with marked differences between countries,” it further states.
Meanwhile, it is added that Portugal, the Netherlands, Hungary, Luxembourg, Ireland, the Czech Republic and Austria lead in this situation.
The Commission warns that the crisis is limiting labour mobility, restricting access to education and delaying family formation, with wider consequences for both the EU's economic competitiveness and social cohesion.
To this end, the European Commission is drafting a plan to increase housing supply, to encourage investment and reforms. However, another concern is short-term rentals, which are mainly given to tourists, especially in areas where there is a housing shortage.
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