Growth, housing, employment: what data says about life in EU cities

Today, the European Commission publishes its EU Agenda for Cities, providing a vision for the future of European cities. EU population has grown in cities over ten years (+2.7%), capital metropolitan regions produced 23% of EU GDP in 2021, and 45% of people in cities rent their homes are some of the trends that emerged in a new Joint Research Centre (JRC) study. The analysis confirms known features of urban life and highlights emerging trends in cities across Europe.

The population of cities, towns and suburbs is growing slowly

Between 2011 and 2021, the EU population has grown in cities (+2.7%) and towns and suburbs (+1.8%), while it has shrunk in rural areas (-2.2%). Specifically, the population in cities, towns and suburbs generally increased in north-western EU countries, while it remained stable in most southern countries. On the other hand, population losses affected smaller and eastern European cities.

Cities are more productive and more innovative

Metropolitan regions are more productive than other regions. Capital metropolitan regions in particular tend to be the most productive in the EU and, with few exceptions, have the highest productivity in their respective countries. They produced 23% of EU GDP in 2021, with only 16% of EU population. City residents are also the most productive, generating about 21% more economic output per worker than the EU average.

Innovation, a highly specialised and more educated workforce, the presence of universities and better transport are some of the factors behind higher productivity.

Urban housing is more expensive and more energy efficient

In 2022, almost twice as many people rent their home in cities (45%) than in towns and suburbs (27%) and in rural areas (22%). This is partly because housing is considerably more expensive in cities, with 11% of city residents spending more than 40% of their income on housing in 2023.

Flats in cities tend to be smaller and more energy efficient than detached houses, and residential greenhouse gas emissions per capita are 40% lower in cities than in rural areas. Looking at renovations, however, the energy efficiency of houses in cities is improving more slowly compared to rural areas.

Poverty, unemployment and crime rates: a mixed picture

In eastern and southern EU countries, city residents generally have higher employment rates and lower poverty rates compared to rural residents. In most north-western countries, however, the opposite is the case.

Car theft rates are significantly higher in metro regions compared to non-metro regions, but homicide rates are similar.