Very bad. Houses have doubled in price in just a few years. Many first-time home buyers cannot afford a house at all, and some say they never will as things look right now.
The government introduced various policies to remedy this, but all has failed. A few years ago they made it easier to fund young people, e.g. by allowing parents to gift 100k EUR to their children in a tax-free manner as long as it's used for buying a house. This resulted in higher housing prices because more people can afford higher prices, and it also disproportionally benefits people who have rich parents.
Now they've backpedalled on that, and the focus is now on disincentivizing investors. They raised ownership transfer taxes for people who buy a house for the purpose of renting it out. They also raised rent taxes. This works a bit better, but not enough. The core problem is just not enough housing. Also, renting out has become less profitable, so some landlords are selling those houses. This has raised concerns that we'll have too few rental housing.
It's not even just a matter of not building quickly enough. The electricity grid is full (not enough capacity), so there are more and more places where new houses can't even be attached to the grid.