The European Parliament and the European Commission have called for stronger EU action on affordable housing, warning that rising rents, higher energy costs and limited supply are placing growing pressure on young people, workers and families across the bloc.
The issue was discussed on Tuesday at a high-level event in Brussels, jointly organised by the European Parliament’s Special Committee on the Housing Crisis in the European Union and the Commission’s Housing Task Force. The meeting brought together MEPs, policymakers, financial institutions and civil society representatives to assess progress since the European Affordable Housing Plan and discuss the next steps.
Housing high on the EU agenda
In a video message, European Parliament President Roberta Metsola said housing must remain high on the European agenda, stressing that access to a home is closely linked to stability, dignity and opportunity.
She said rising housing and energy costs are weighing heavily on many European households, with young people, workers and families among those most affected. The creation of Parliament’s special housing committee, she added, reflected the growing pressure being felt in cities across Europe.
Metsola said the response must involve coordinated action at European, national and local level, including investment in social housing and reforms to planning and urban development rules. She also pointed to the next long-term EU budget as a tool that could help direct resources more effectively towards affordable housing.
Funding and investment
European Commissioner for Energy and Housing Dan Jørgensen said progress had been made over the past year, but warned that new pressures, including the recent rise in energy prices, had made the housing challenge more urgent.
He said at least €43 billion is already being channelled into housing-related investments under the current EU budget framework, while further opportunities are expected under the next one. He also said the Commission had adjusted state aid rules to make it easier for member states to invest in affordable housing.
Jørgensen stressed, however, that public funding alone would not be enough. He pointed to the planned pan-European Housing Investment Platform, which is intended to mobilise financial institutions, including the European Investment Bank and international partners, to support housing projects across the EU.
Short-term rentals and market pressure
The Commissioner also referred to speculation in the property market, saying the Commission will present an analysis this year on price dynamics and related trends. The aim is to improve transparency and help member states design more effective responses.
Beyond funding, Jørgensen said structural reforms are also needed. He said the Commission is preparing a simplification package for housing, as well as a European strategy for housing construction, with the aim of increasing supply, addressing labour shortages and supporting digitalisation in the construction sector.
In the coming months, the Commission is also expected to present an Affordable Housing Act. It will include common criteria for identifying areas under housing pressure and measures to address the impact of short-term rentals.
Focus on young people
Jørgensen said the housing crisis is limiting the ability of young people to live, study and work in the cities of their choice.
He said the Commission is examining several possible measures, including financing tools through InvestEU, cohesion policy and the next EU budget. It is also considering a guarantee mechanism to reduce upfront payment requirements for students and young workers.
A pilot housing programme is also being developed under Erasmus+, aimed at supporting student mobility for people from disadvantaged backgrounds.
Ribera: Housing is a European challenge
Executive Vice-President of the European Commission Teresa Ribera said affordable housing is now one of the main concerns of European citizens and must be treated as an urgent EU-wide challenge.
She said access to housing is a fundamental right and is directly linked to social cohesion and the functioning of European societies. Ribera stressed that the response must involve the EU, member states and local authorities, and must focus not only on increasing supply, but also on ensuring that homes are decent, sustainable and affordable.
She said the goal of EU policy is to ensure that access to affordable housing does not depend on income, age or place of residence, but becomes a shared reality across the Union.
Ribera also underlined the role of local authorities, saying their experience and data are crucial for designing effective policies. She said the conclusions of the Brussels discussions should help strengthen EU action on one of Europe’s most pressing social challenges.
Source: CNA