The European Commission on Wednesday presented in Strasbourg what it described as the first European Affordable Housing Plan, aiming to address one of the most pressing challenges facing European citizens: access to affordable, sustainable and quality housing.
According to the Commission, the plan marks a shift towards coordinated European action, adapted to national realities, in response to the housing crisis. Millions of Europeans are struggling to find homes they can afford, following a sharp rise in prices over the past decade. House prices have increased by more than 60%, while rents have risen by over 20%, developments that negatively affect employment, education and family formation.
The plan focuses on increasing housing supply, mobilising investments and reforms, addressing short-term rentals in areas under housing pressure, and supporting the groups most affected by the crisis, including young people, students, workers in critical sectors, low-income households and other vulnerable groups.
Specific measures
Through a European Strategy for Housing Construction, the Commission proposes measures to make the construction and renovation sector more productive and innovative, tackling the mismatch between housing supply and demand.
Under the New European Bauhaus (NEB) initiative, the EU will support projects that contribute to the green transition and innovation, financing sustainable, affordable and high-quality developments, particularly in the building sector. At the same time, the New European Bauhaus Academy will strengthen the skills of construction workers, promoting sustainable and circular practices. In addition, revised EU state aid rules will make it easier for member states to financially support affordable and social housing.
The Commission will work with national, regional and local authorities to simplify rules and procedures that limit housing supply, with particular emphasis on spatial planning and licensing processes.
The plan also foresees a new legislative initiative on short-term rentals, aimed at supporting areas facing intense housing pressure.
In parallel, a new pan-European Investment Platform will be developed in cooperation with the European Investment Bank, national and regional development banks, and other international financial institutions. The plan also includes the design of tools to help member states implement more effective solutions for homelessness, based on the principles of “Housing First.”
EU housing summit
During the presentation in Strasbourg, it was highlighted that the Commission has already mobilised €43 billion in investments in the housing sector and will continue to do so under the EU’s next long-term budget.
In the coming period, a new European Housing Alliance will be established, bringing together member states, cities, regions, EU institutions, housing organisations and social partners to support the implementation of the plan. The Commission will present a progress report in due course and has announced the first-ever EU Housing Summit, scheduled for 2026.