It does however take into account rental prices, which exceed owner-occupied housing costs. So the idea that housing cost inflation is fully absent from EU inflation numbers (not you that's saying it, but sometimes implied in various discussions) isn't quite true, either.
Housing costs as a percentage of income for owner-occupiers hasn't risen all that much due to the low interest rates, and is below peaks we saw in the past. Even in nominal figures, due to lower rates, monthly payments are lower too (ceteris paribus). I don't think including OOH costs would massively increase inflation the way people think, at least not if looked at from a cost-perspective. (i.e., interest, maintenance, taxes, hoa etc).
For example, the total payment on a 300k home with 3.5% rates (like the US) vs 0% rates (like Denmark) is 485k vs 300k. That means in the US you could bid 60% more in a world where interest rates dropped to 0% overnight, while having no change in your total costs. That's what's happening in much of Europe: home prices rising purely due to lower interest rates, without necessarily increasing monthly housing costs, for owner-occupiers.
For renters, different story, but that's included in the inflation figures already.
