Across Europe, owning even a small slice of a home is becoming the new normal.

From buying a single bedroom in a shared flat to taking out joint mortgages with friends, young Europeans are turning to unconventional solutions. This shift comes as housing costs continue to outpace incomes.

Over the past decade, house prices in the European Union have risen about 10% faster than incomes. This trend squeezes first-time buyers the most. In Spain, shortages in cities like Madrid and Barcelona have worsened. As a result, startup Habitacion.com sells individual rooms for up to 80,000 euros — roughly a third of the price of a one-bedroom flat in similar areas. The company sold 200 rooms last year. Furthermore, it says demand remains strong.

In the UK, developer Fairview runs a “Buddy Up” scheme that helps friends buy homes together and covers part of their legal costs. Meanwhile, banks in countries such as Britain, France, Germany and Italy are reintroducing low or zero-deposit mortgages. However, these often come with higher interest rates and strict eligibility criteria.

Some renters are also investing indirectly. Platforms like PropHero allow buyers to purchase rental properties — or even small stakes in apartment buildings. This generates income that helps offset rising rents.

Experts say these models reflect tough market realities rather than lifestyle preferences. With prices surging far ahead of wages, many young Europeans are accepting complex and costly arrangements to secure a foothold in the property market.

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