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The commentary argues that European housing markets suffer from excessive rents, with Lisbon reaching 116% of average salaries. It contends that builders are slow to respond to this unaffordability crisis despite the EU identifying numerous cities where rent consumes half or more of income.
Paul Krugman argues that temporary rent caps are a necessary immediate measure to curb housing speculation across Europe, where soaring costs have fueled social unrest. He contends that while liberalizing construction is the long-term solution, current market conditions make intervention essential to address the impossible situation for younger populations.