Written by Marketa Pape.
The recent cost-of-living crisis has exacerbated a longstanding problem with housing affordability in the EU. Higher building costs and mortgage rates, together with a related decrease in housing construction, have made access to home ownership more difficult. At the same time, investors use housing as a vehicle for investment. Growing numbers of people are struggling to access affordable housing, whether to rent or to buy, particularly in cities. Across Europe, homelessness is rising.
In addition, many residential buildings need to be made energy-efficient and decarbonised in order to achieve the EU’s energy and climate goals, lower energy consumption and reduce energy bills.
While the EU has no direct competence in the area of housing and only a limited scope of action to address social issues, it provides relevant guidance and funding, and has carried out several initiatives to support housing. Furthermore, certain EU rules have a indirect impact on housing provision, starting with the Energy Performance of Buildings Directive. In parallel, many sources of EU funding are available for various housing-related purposes in the current financing period.
In the run-up to the 2024 European elections, the lack of adequate and affordable housing, and the need to address it at EU level, emerged as a concern across the whole of the EU and the entire political spectrum. The new European Commission) is giving housing policy visibility and weight by proposing a coordinated approach. For the first time, housing has become a distinct part of a commissioner’s portfolio. Dan Jørgensen, the new Commissioner for Energy and Housing, is responsible for dealing with several complex issues relating to housing.
In 2024, the spotlight was on affordable housing, while 2025 is seeing a scaling-up of housing-related policy developments across the EU institutions, including discussions, consultations and funding initiatives.
This updates a briefing published in January 2025.
Read the complete brifeing on ‘A coordinated EU approach to housing‘ in the Think Tank pages of the European Parliament.
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