The latest Eurostat house price index shows that housing in the European Union is still getting more expensive, though at a slower pace than at the start of the year. Eurostat published the figures for the second quarter of 2026 on 1 October. Prices in the euro area rose 4.0 percent compared with the same quarter of 2025, down from 4.6 percent in the first quarter.

The EU as a whole recorded a larger rise, with the house price index up 4.7 percent on the year, against 5.1 percent in the previous quarter. On a quarterly basis, prices increased 1.1 percent in the euro area and 1.2 percent in the EU. The slowdown is modest, but it suggests that the strongest phase of the recent price surge may be fading.

Portugal led the annual ranking at 16.5 percent, followed by Bulgaria at 15.5 percent and Lithuania at 14.3 percent. Those three countries lead a group of eastern and southern markets where prices keep climbing quickly.

Quarterly movements point to other hot spots. Lithuania recorded a 5.0 percent increase on the previous quarter, Bulgaria 4.5 percent and Romania 4.4 percent, so the house price index shows momentum building in eastern member states. In contrast, Hungary registered a quarterly fall of 1.4 percent.

Not every market is climbing. Over the year, Finland recorded a decline of 2.7 percent, Luxembourg 2.2 percent and France 0.8 percent. Eurostat does not publish a figure for Greece in this release.

Rents tell a related story. Reports based on separate Eurostat data say that EU rents rose 3.0 percent, and that prices outpaced rents in all 18 countries with available figures. Rents increased in every country with data. Tenants therefore find little relief, even where the house price index cools.

The figures matter for policy because housing affordability has moved up the political agenda in Brussels. Ministers are due to discuss a recommendation on housing exclusion on 19 October. A rising house price index gives governments a concrete reason to act on supply, planning rules and support for first-time buyers.

Governments that want a stable house price index will have to watch how supply, wages and credit conditions move together in the coming quarters.

For households, the practical meaning is simple. A rising house price index lifts the deposit that first-time buyers must save, and it raises the value of homes that existing owners hold. Those opposite effects explain why housing remains one of the most sensitive topics for national governments across the Union.

Readers should treat the index with care. It measures price changes over time and does not show whether homes are affordable in absolute terms, because it ignores differences in income, mortgage rates and housing quality between countries. A 16.5 percent rise in Portugal and a 2.7 percent fall in Finland describe movement, not the level of prices that families pay.

Eurostat will publish the next house price index on 11 January 2027, covering the third quarter of 2026. That release will show whether the cooling seen in the euro area continues, and whether the fastest-growing markets in Portugal, Bulgaria and Lithuania finally slow down.