A new Eurostat report reveals a stark contradiction within the Cypriot housing market. While the island boasts the European Union's most spacious living conditions and high rates of home ownership, it is simultaneously grappling with an intensifying housing shortage and rising rental costs, creating a multifaceted crisis for residents. The "Housing in Europe 2025" data, released recently, paints a picture of a nation caught between its historical housing strengths and contemporary market pressures. According to the report, Cyprus stands out for the quality of its housing stock. A remarkable 70% of Cypriots live in under-occupied dwellings—the highest rate in the EU, where the average is just 33%. This is complemented by the lowest overcrowding rate on the continent, a mere 2% compared to the 17% EU average. Cypriots enjoy an average of two rooms per person, significantly above the EU norm of 1.7. This spaciousness is facilitated by a strong preference for houses, with 74% of the population residing in them, a stark contrast to the nearly even EU split between houses and apartments. Beneath this veneer of comfort, however, lies a strained market. Despite home-ownership rates hovering around 70-74%, well above the EU average, a severe supply-demand imbalance is fueling a rental affordability crisis. Recent data from the consulting firm Perprice shows rental prices climbing in most major urban centres from August to October 2025, with Paphos seeing a sharp 4.8% increase. Only Limassol recorded a decrease. This paradox—of ample space for owners and scarcity for tenants—has not gone unnoticed by authorities. Interior Minister Constantinos Ioannou has publicly acknowledged the challenges, attributing the constrained housing supply to "geopolitical tensions and inflation as drivers of rising construction costs." He further cited "interest rates and strong demand from foreign workers" as key factors pricing locals out of the market. The situation underscores a critical disconnect: the problem is not a fundamental lack of physical dwellings, but rather their availability and affordability for specific segments of the population. As the gap between the haves and have-nots in the housing market widens, the pressure mounts on the government to implement effective solutions that address both supply-side constraints and rampant demand, lest the crisis for tenants and prospective buyers deepens further.