Undocumented Migration Intensifies Urban Housing Pressures

Undocumented migrants add to the demand for housing in European cities, often straining already limited supply and contributing to rising costs. Their presence intersects with broader market dynamics, shaping both the experience of migrants and the housing options available to all urban residents.

Demand and Supply Imbalance in Urban Housing

European cities have faced a persistent housing shortage, with migration—both documented and undocumented—acting as a significant amplifying factor. Since 2015, waves of new arrivals have increased the immediate need for accommodation, particularly in urban centers with existing shortages. Analysts widely agree that migration has worsened the crisis, especially for lower and middle-income residents who now face higher rents and longer waits for social housing.

For example, in the Netherlands, a country with high net migration, the shortage of homes reached approximately 401,000 in 2024, and average rents saw their largest annual increase since 1993. In Germany, the projected housing shortage is expected to reach 700,000 by 2025. These figures illustrate the scale of the challenge when new arrivals, including undocumented migrants, seek housing in cities already struggling to meet demand.

Undocumented Migrants and Barriers to Housing Access

Undocumented migrants face unique barriers in accessing stable, quality housing. Legal status often determines eligibility for emergency shelters and social housing, leaving many to rely on substandard or informal arrangements. In most European cities, precarious migrants are generally excluded from official emergency accommodation, except in rare humanitarian circumstances.

This exclusion pushes many into overcrowded, unhealthy, or exploitative living situations. Research supported by JPI Urban Europe highlights that migrants, especially those without documentation, are more likely to experience legal uncertainties and high rental costs, even for poor-quality housing. The lack of long-term solutions increases the risk of homelessness among this group, further intensifying visible housing deprivation in urban areas.

Impact on Housing Costs and Market Dynamics

The influx of migrants, including those without legal status, has measurable effects on housing prices and rents. Studies cited in recent analyses found that a 1% increase in a city’s immigrant population correlates with a 1% rise in rent and housing costs. A 2017 Urban Institute study reported even stronger effects: a 1% increase in the immigrant population in metropolitan areas was associated with a 1.6% rise in rents and a 9.6% increase in property prices.

These effects are not confined to city centers. As migrants settle in urban areas, some original residents move to the suburbs, creating shortages and price pressures there as well. The immediate demand from new arrivals often outpaces the slow pace of new housing construction, especially during migration surges.

Undocumented Migrants in the Construction Sector

There is a paradoxical dynamic at play: while undocumented migrants increase demand for housing, many also work in the construction industry. By accepting lower wages and forgoing social protections, they contribute to building new homes, which could help alleviate shortages over time. However, the scale of construction often lags behind the immediacy of demand, especially during periods of rapid migration.

This dual role complicates the narrative. Migrants are both contributors to and sufferers from the housing crisis, highlighting the need for nuanced policy responses that address both supply and demand sides of the market.

Public Perceptions and Policy Responses

Public sentiment frequently attributes the housing crisis to migration, with surveys showing that over half of respondents in some countries view immigration as the main driver of housing shortages. However, research from the London School of Economics and other institutions points to a complex interplay of factors, including lack of social housing investment, changing household structures, and governance failures.

Despite these findings, policy responses often focus on restricting migrant arrivals rather than addressing underlying supply constraints or discrimination in the housing market. Discrimination against migrants, particularly those with visible religious or ethnic backgrounds, remains widespread, further limiting their access to decent housing even when supply increases.

Migrants are both contributors to and sufferers from the housing crisis, complicating simple narratives about cause and effect.

Homelessness and Housing Deprivation Among Migrants

Rising homelessness is a visible outcome of the housing crisis, with migrants—especially those without legal status—disproportionately affected. In France, the homeless population has tripled since 2001, reaching at least 300,000. In Belgium and Germany, migrants and asylum seekers are increasingly forced to live on the streets or in informal camps due to lack of shelter space and restrictive eligibility rules.

Efforts to address these issues, such as increased public investment in housing or targeted support for vulnerable groups, remain uneven across Europe. The European Parliament has encouraged member states to eradicate homelessness and housing deprivation by 2030, but progress is slow and uneven.

The next move for policymakers and urban planners is to recognize the intertwined roles of migration, market forces, and institutional barriers in shaping housing outcomes. Addressing only one aspect—such as restricting migration—will not resolve the underlying shortages or improve conditions for either migrants or long-term residents. A coordinated approach that combines increased housing supply, anti-discrimination measures, and inclusive policy design is needed to ease pressures and create fairer urban housing systems.