The European Commission has unveiled the first European Affordable Housing Plan, addressing one of the most pressing challenges facing EU citizens today. Over the past decade, average housing prices across the EU have increased by more than 60%, while rents have risen by over 20%, leaving millions struggling to find affordable and decent homes.
The housing crisis is no longer just a social issue. It has become a major economic concern, affecting labour mobility, access to education, and family formation, while undermining social cohesion and the EU’s long-term competitiveness.
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Through this plan, the Commission aims to support member states, regions, and cities where EU-level action can deliver added value. The proposed measures focus on increasing housing supply, boosting investment and reforms, addressing the impact of short-term rentals in high-pressure areas, and supporting the most vulnerable groups.
“Housing is not just a commodity. It is a fundamental right. We must mobilise every available euro, cut red tape, and act decisively to ensure everyone in Europe can afford a decent place to call home,” said Dan Jørgensen, European Commissioner for Energy and Housing.
A key pillar of the plan targets a more productive and innovative construction and renovation sector. Through the European Housing Construction Strategy, the Commission aims to reduce the mismatch between housing demand and supply by promoting efficiency, innovation, and sustainable building practices.
The package also includes a Communication and a Council Recommendation on the New European Bauhaus (NEB) initiative. As an enabler of the green transition, innovation, and the bioeconomy, the NEB supports affordable, high-quality, and sustainable housing projects, particularly within the built environment.
By combining investment, regulatory reforms, and sustainability goals, the Commission’s plan seeks to create long-term structural solutions to Europe’s housing crisis and improve living conditions for citizens across the Union.
Photo: freepik.com
