How Many Europeans Renovate Their Homes?

The building renovation market in Europe is expected to grow by 55.6 billion U.S. dollars from 2021 to 2026, with the industry valued at nearly 957 billion U.S. dollars in 2021. With many consumers spending more money and time on improving their homes, the EU’s renovation wave aims to double the annual renovation rate to tackle energy efficiency, renewables, and electrification challenges. The sector is responsible for around 35 of the EU’s total waste generation and produces around 40 of carbon emissions.

Renovations are crucial for reaching the EU’s climate, energy, and air pollution targets, but they require an acceleration in renovation rates. The DIY home improvement market share in Europe is expected to increase, and the EU aims to double the renovation rate of buildings and make them more energy efficient, sustainable, and resilient by 2030. Most homes and buildings in the EU are decades old, needing renovation to achieve the EU’s goal of a zero-emission building stock by 2050.

A new European Union law will make it easier for people to renovate their homes, lower their household bills, and help achieve climate targets. Insulating homes and switching to clean heating in the coming decade can help lift people out of energy poverty, reduce energy bills, and improve inefficient buildings.

The EU renovation sector is driving growth, accounting for more than half of construction. The Buildings Performance Institute Europe (BPIE) predicts that with a tripling of the current renovation rate, almost all residential buildings in the European Union could be renovated by 2050.

What is the construction industry outlook for the EU?

The European construction volume is expected to decrease in 2024 by -1. 5, down from the previous forecast of -0. 5, mainly due to revised Eurostat data. The European data office recently upgraded the 2023 EU Construction figure from 0. 1 to 1. 4. The prices of newly-built houses follow a general trend in house prices, with higher prices of existing houses being beneficial for new residential building volumes. However, this will take time to materialize.

Sales prices of new houses are closely related to existing house prices, as they often substitute for consumers in the market for a new home. When house prices of existing houses increase again, project developers can increase the sales price of newly built houses. Building material costs have almost stabilized in the last year, making it easier for developers to make projects profitable. Prices of new houses are increasing in most EU countries, with Poland and Spain experiencing the highest price increases in recent quarters. France and Germany are still experiencing declining house prices. The Netherlands experienced a modest decline in newly built house prices in the first quarter.

What is the outlook for the construction industry in Europe?

The European construction volume is expected to decrease in 2024 by -1. 5, down from the previous forecast of -0. 5, mainly due to revised Eurostat data. The European data office recently upgraded the 2023 EU Construction figure from 0. 1 to 1. 4. The prices of newly-built houses follow a general trend in house prices, with higher prices of existing houses being beneficial for new residential building volumes. However, this will take time to materialize.

Sales prices of new houses are closely related to existing house prices, as they often substitute for consumers in the market for a new home. When house prices of existing houses increase again, project developers can increase the sales price of newly built houses. Building material costs have almost stabilized in the last year, making it easier for developers to make projects profitable. Prices of new houses are increasing in most EU countries, with Poland and Spain experiencing the highest price increases in recent quarters. France and Germany are still experiencing declining house prices. The Netherlands experienced a modest decline in newly built house prices in the first quarter.

What does the EU spend the most money on?

The European Union’s government spending on social protection, health services, and economic affairs has decreased significantly over the past few decades. Spending on general public services fell from nearly 20% in the late 1990s and early 2000s to less than 10% in the 2020s. Health spending increased from 10% to over 15% during the COVID-19 pandemic in 2020 and 2021. Economic affairs experienced a surge during the pandemic, as governments provided economic support and subsidies to sectors affected by the pandemic, such as food and accommodation.

What is the renovation rate in the Netherlands?

The Netherlands has a high renovation rate, with a 1. 3 renovation rate in 2015 and a 1. 4 renovation rate in 2030 and 2050. The majority of policy measures aim to reduce energy consumption by improving building energy performance through energy labels. The country uses cookies for shopping and supports its policies, including those for text and data mining, AI training, and similar technologies.

What is the target of the EU renovation wave?

The European Commission’s Renovation Wave Strategy, part of the EU Green Deal, aims to reduce energy poverty, improve quality of life, and reduce emissions by accelerating home renovations across the EU. This strategy aims to break the cycle of high energy bills and arrears, which affect 34 million Europeans. The strategy also aims to improve the health and well-being of citizens by reducing vulnerability to cold spells and heatwaves. The goal is to double energy renovation rates in the next ten years, leading to greater energy and resource efficiency.

The Commission estimates that 35 million buildings could be renovated by 2030, creating up to 160, 000 jobs in the construction sector. The EU must adopt an integrated strategy based on ‘energy efficiency first’ principles, ensuring only the energy we need.

What is the renovation rate in Europe?

The European Commission has proposed an increase in the rate of deep renovation from 0. 2 to 2 annually, given that the current energy renovation rate in the EU is only 1 annually, which is insufficient to meet the necessary level.

How many homes are in the EU?

In 2023, the EU had 200 million households, with over 73 million being single adults without children. The number of single adult households without children was the highest at 73. 4 million, followed by couples without children at 48. 4 million, other types of households without children at 30. 6 million, and couples with children at 30. 3 million. The total number of households in the EU increased by 7. 0 between 2013 and 2022, with single adult households without children experiencing the fastest growth rate of 21.

0. Couples without children experienced a decrease of 3. 7, while households with two adults or more fell by 3. 0. The decrease in these households was higher in households with children (-6. 1) than in those without children (-1. 8).

What are the EU restoration targets?

The EU aims to implement restoration measures in at least 20 of its land and sea areas by 2030, with all ecosystems requiring restoration by 2050. The law requires maintaining urban green space and tree canopy cover, with an increase after 2030. By 2030, the goal is to restore at least 25, 000 km of rivers into free-flowing ones, reversing the decline of pollinator populations, improving biodiversity in agricultural and forest ecosystems, and planting at least three billion additional trees at the EU level. This will contribute to a better environment for all species on land and at sea.

How many homes are in the Netherlands?

The Netherlands has over 8. 0 million homes, a significant increase from five years ago. The majority of homes are located in the western Netherlands, with the northern Netherlands having the fewest dwellings. House prices and rents have risen annually over the past five years. Nearly 6 in 10 Dutch homes are owner-occupied, with over 4 in 10 being rental properties. In the four major cities, rental housing is higher than the average, with seven in 10 dwellings in Amsterdam being rental properties.

In Q2 2021, the average sales price of existing homes was over 350 thousand euros, with owner-occupied dwellings being 13. 0% more expensive than one year earlier. New-build homes were also significantly more expensive at over 442 thousand euros in Q2 2021 compared to Q2 2015.

How much does the EU spend on renovation wave?

The European Council has reached an agreement to provide €672 in funding. A total of €5 billion has been allocated to the Recovery and Resilience Facility, with 37 percent of this sum earmarked for climate-related expenditure. The objective is to provide support for renovation investment and energy efficiency reforms across all Member States.

What percentage of the EU is social housing?

The Netherlands has the highest percentage of social housing units, with 35 units per 100, 000 inhabitants, while Hungary has the lowest percentage at 4 units per 100, 000 inhabitants following the implementation of a policy of mass privatization. France has the highest number of social housing units at 4. 25 million dwellings.