The construction of new homes has increased by 48% in the European Union since 2015, and Romania is among the most affected countries.

Producers' prices for the construction of new residential buildings have increased by 48.2% in the European Union between 2015 and 2025, according to Eurostat. The largest price increases were in Bulgaria, Hungary, and Romania, where costs were more than twice as high as in 2015. In Romania, the increase was 130.7%, in a context where the pressure on construction is also seen in building permits, investments, and costs borne by those who want to buy or build a home.

The construction of new homes has become 48.2% more expensive in the European Union between 2015 and 2025, according to data published by Eurostat. The increase was much stronger in Central and Eastern Europe, and Romania is among the three countries with the highest price increases in the last decade, after Bulgaria and Hungary.

In short

1. Prices for the construction of new residential buildings have increased by 48.2% in the European Union between 2015 and 2025.

2. The largest increases were in Bulgaria, with 166.1%, Hungary, with 155.4%, and Romania, with 130.7%.

3. The smallest increases were in Italy, with 17.0%, Greece, with 17.3%, and Finland, with 22.1%.

4. The strongest price increases at the Union level occurred in 2021, 2022, and 2023, peaking in 2022, when prices rose by 12.2% in a single year.

5. Permits for individual homes were 2.9% below the level of 2015 in 2025, while permits for buildings with two or more homes were 38.9% above the level of 2015.

The indicator used by Eurostat measures prices from the contractor's perspective and is based on the amounts paid by clients to contractors for the construction of new residential buildings. The data do not include residences for communities, such as nursing homes for the elderly.

The price increase was not evenly distributed over the entire decade. Between 2015 and 2020, the increase was more gradual, but the pressure accelerated after the pandemic and after the economic shocks caused by rising energy prices, supply chain disruptions, and inflation. At the level of the European Union, prices increased by 5.8% in 2021, by 12.2% in 2022, and by 6.9% in 2023.

After this period of rapid increases, the pace has slowed. Prices rose by 2.3% in 2024 and by 1.3% in 2025. The level remains, however, well above that of the middle of the last decade, and the effect is seen in the costs of new projects, in the budgets of developers, and in the final prices borne by buyers.

Romania had one of the highest increases in the Union. Prices for the construction of new homes were 130.7% higher in 2025 than in 2015. Only Bulgaria, with 166.1%, and Hungary, with 155.4%, had faster price increases. In all three countries, costs reached more than double the level of 2015.

The difference compared to Western and Southern Europe is very large. In Italy, prices increased by 17.0%, in Greece by 17.3%, and in Finland by 22.1%. These figures show that the pressure on new housing was not just a general European problem, but one with very different intensity between states.

For buyers, the increase in construction prices matters even if it does not always appear directly in the displayed price of a home. Higher costs for materials, labor, energy, transport, equipment, and construction services are passed on to the prices of new homes, to the advances required by developers, to borrowing costs, and to the profitability of projects.

For developers, the price increase reduces the margin of maneuver. Projects become harder to finance, especially when costs rise at a time when interest rates are higher, demand becomes more cautious, and permits and deadlines remain difficult. An increase of over 100% in a decade changes the economic calculation of construction, especially in markets where population incomes have not kept pace.

Data from the publication Key figures on European business 2026 show that the construction sector has an important weight in the Union's economy, but not a dominant one. In 2023, construction represented 8.6% of employment in the EU business economy and 7.0% of added value. Romania had the highest share of construction in added value in the business economy, at 10.5%.

This high share makes the increase in construction prices more important for the Romanian economy. When costs rise rapidly, the effect is not limited to the real estate market. It can affect investments, the activity of construction firms, the demand for materials, project financing, and households' ability to access new homes.

Building permits show a mixed picture at the Union level. The number of homes in permits for new residential buildings increased between 2015 and 2019, decreased in 2020 in the context of the pandemic, and rebounded strongly in 2021. After that, developments were different for individual homes and for buildings with multiple apartments.

In 2025, the index of permits for individual homes was 2.9% below the level of 2015. In contrast, the index for residential buildings with two or more homes was 38.9% above the level of 2015. The data suggest a change in the structure of residential buildings, with a stronger dynamic for projects with multiple homes than for individual houses.

This difference may matter for access to housing. In a market with high costs, apartments in buildings with multiple units can allow for the sharing of land, infrastructure, and construction costs among multiple buyers. Individual houses become more vulnerable to price increases, as a larger portion of the cost is borne by a single household.

The increase in the construction of new homes overlaps with other economic pressures on the sector. Eurostat shows that the period 2015-2025 was marked by the COVID-19 pandemic, Russia's military aggression against Ukraine, associated sanctions, and strong increases in the cost of living. For construction, these shocks translated into higher costs and volatility.

Production data show that the construction sector continued to grow in the long term, but with recent difficulties. Construction production was 14.1% higher in 2025 than in 2015, but growth slowed in 2023, followed by a contraction of 1.6% in 2024 and a recovery of 2.3% in 2025.

Employment in construction has fared better. In 2025, the level of employment in construction was 18.5% higher than in 2015, and the sector recorded increases in employment every year from 2020 to 2025. This development shows that the demand for labor remained high, even though prices and activity went through shocks.

Eurostat data describe a new housing market where the cost of construction has become one of the major pressures of the decade. The 48.2% increase at the level of the European Union is already significant, but the figures from Romania, Bulgaria, and Hungary show a much more abrupt change in the east of the Union.

For Romania, the increase of 130.7% raises a direct economic and social problem. New homes are becoming harder to produce at affordable prices, and the gap between construction costs and household incomes can increase pressure on families, cities, and public housing policies.

https://2eu.brussels/ro/stiri/constructia-de-locuinte-noi-s-a-scumpit-cu-48-in-uniunea-europeana-din-2015-iar-romania-este-printre-cele-mai-afectate-tari