The European Commission presented in Strasbourg the first-ever European Plan for Affordable Housing, aiming to address the growing difficulty citizens face in accessing affordable, sustainable and quality housing. As highlighted, the Commission is taking action adapted to national conditions, as the explosive rise in housing prices by over 60% and rents by more than 20% over the past decade has burdened millions of Europeans. The impacts are evident on employment, education and family formation. The Plan emphasizes increasing housing supply, activating investments and reforms, addressing short-term rentals in areas with housing pressure, as well as supporting vulnerable groups such as young people, students, workers in critical sectors and low-income individuals.
European Commission: What the European affordable housing plan includes
Through the European Strategy for Housing Construction, measures are proposed for a more productive and innovative construction and renovation sector, to bridge the gap between supply and demand. The establishment of the New European Bauhaus (NEB) will strengthen green transition and innovation projects, funding sustainable, affordable and quality constructions. At the same time, the NEB Academy will upgrade the skills of industry workers, promoting circular and sustainable practices.
Revised state aid rules will allow member states to more effectively support affordable and social housing. Additionally, the Commission will work with national, regional and local authorities to simplify procedures that limit housing supply, focusing on spatial planning and licensing. The plan includes a new legislative initiative for short-term rentals, aimed at supporting areas facing intense housing pressure. Furthermore, the creation of a Pan-European Investment Platform is promoted in cooperation with the European Investment Bank and other financial institutions. The Plan incorporates tools to address homelessness, based on Housing First principles.
European Housing Alliance and Housing Summit
According to the official presentation, investments of €43 billion have been mobilized for the housing sector to date, with further support planned in the EU’s next long-term budget. The establishment of the European Housing Alliance is scheduled, with participation from member states, cities, regions, institutional bodies, housing organizations and social partners, to promote the Plan’s implementation. The Commission will present a progress report soon, while it has already announced the first EU Housing Summit, which will take place in 2026.
