Across Europe, finding a decent home at a price you can afford has become harder every year. EU institutions now openly describe this as a “housing emergency”, and are putting forward plans, laws and political alliances to respond.
The focus is clear: more homes where people actually live and work, better protection for tenants and buyers, and support for those hit hardest by soaring costs.
- Europe’s housing emergency: how we got here
- What is the European Affordable Housing Plan?
- The Affordable Housing Act: what could change in your city
- Housing as a right: what the EESC is pushing for
- Who is supposed to benefit most from these EU moves?
- What the EU can and cannot do on housing
- What comes next: Housing Summit 2026 and beyond
Europe’s housing emergency: how we got here
Over the past decade, the cost of a home in the EU has risen sharply. According to the European Commission, average house prices have increased by more than 60% in ten years, while rents have gone up by more than 20% over the same period.
The impact goes far beyond the property market. The Commission warns that high housing costs make it harder for people to move for work, access education or start a family. This, in turn, weakens both the EU’s social cohesion and its economic competitiveness.
The European Economic and Social Committee (EESC) – the body that brings together unions, employers and civil society – describes this as a “genuine emergency”. Young Europeans are delaying independence, and more people are pushed to the margins.
For many households, rising housing costs combine with high energy bills. Poorly insulated homes and expensive energy make it much harder to maintain a decent standard of living, especially for those on lower incomes.
What is the European Affordable Housing Plan?
In December 2025, the European Commission presented the European Affordable Housing Plan, its first EU‑wide strategy dedicated to tackling the housing crisis.
The Plan is built around a few clear priorities:
- More homes where people need them
The Commission wants to increase housing supply by supporting a more productive and innovative construction and renovation sector. - More investment in affordable and social housing
The EU has already mobilised around €43 billion in housing investments and plans to continue under the next long‑term budget. - Fairer rules for short‑term rentals
A new EU legislative initiative will focus on short‑term rentals in areas under housing stress. The aim is to help local authorities manage tourist rentals and similar platforms. - Support for those most affected
The Plan promises new investment in student housing and social housing, and backing for Housing First approaches that move people from the street directly into permanent housing with support.
The Affordable Housing Act: what could change in your city
The Affordable Housing Act will turn some elements of the Plan into binding EU rules. The Commission is currently shaping this law through workshops and consultations with Member States, regions, cities, housing providers, tenant organisations and researchers.
A few important themes that have arisen from discussions:
- Defining “areas under housing stress”
Governments agree that the law needs a common way to identify areas under housing stress, while still allowing for very different realities: crowded city centres, tourist hotspots and struggling regions with a limited supply of quality housing. - Giving cities a clear toolbox for short‑term rentals
Cities are asking for a toolbox of measures that are clearly compatible with EU law, so they can regulate platforms and hosts in a way that works locally. - Prioritising long‑term homes for residents
Increasing the supply of long‑term social and affordable housing for people who actually live and work in these places is seen as essential to counter the pressure from investment and short‑term lets. - Making better use of existing buildings
Many participants point to the potential of renovating older homes, repurposing vacant buildings and densifying where appropriate, rather than relying only on new construction.
For residents, the Affordable Housing Act could eventually mean clearer rules for tourist rentals, more protection for long‑term homes in high‑pressure neighbourhoods and better use of underused buildings in their city.
Housing as a right: what the EESC is pushing for
The EESC is pushing the EU to treat housing as more than just a market question. A central demand is that the EU should recognise a right to adequate and affordable housing in its primary law.
The Committee suggests a concrete benchmark: housing costs should not exceed 25% of a household’s disposable income.
The EESC also calls for:
- stronger consumer and tenant protections
- a clear push for social and limited‑profit housing, not only private rental markets
- action against speculation and the financialisation of housing
- a mandatory share of subsidised affordable housing as part of rural development strategies.
Who is supposed to benefit most from these EU moves?
Across the official texts, the same groups appear again and again as those the EU wants to support most:
- Young adults and students
Young people are finding it harder to move out, especially in cities where rents have soared. Students are particularly exposed in university towns and cities with a lot of tourism. - Essential workers and low‑income households
Nurses, teachers, care workers and service staff are sometimes pushed far away from the places where they work because of high housing costs. - People experiencing homelessness
With over a million people across Europe living on the street, in shelters or in temporary arrangements, homelessness features prominently in the EU’s housing agenda.
What the EU can and cannot do on housing
Housing policy is, and remains, primarily the responsibility of Member States. National and local governments decide on zoning, construction rules, rent regulations, social housing systems and eligibility criteria.
EU institutions are clear that they must respect this division of powers. The EESC also insists that questions such as how to define target groups for social housing and how to carry out income checks should remain in national hands.
At the same time, the EU can shape the landscape in several important ways:
- Funding and investment rules
By revising State aid rules, the EU can make it easier for governments and cities to finance social and affordable housing. - Common rules where there is cross‑border impact
The EU can propose legislation on matters like short‑term rentals and energy markets, where digital platforms and cross‑border energy trading go beyond any single country’s borders. - Setting political priorities and standards
Through plans, recommendations and opinions, EU institutions can push housing up the political agenda, promote the idea of housing as a fundamental right and encourage the protection of vulnerable households.
What comes next: Housing Summit 2026 and beyond
To keep housing firmly in the spotlight, the Commission plans to organise the first‑ever EU Housing Summit in 2026. This summit will bring together EU institutions, national governments, cities, regions and other actors. The EESC has called for this to become an annual EU Summit on Social and Affordable Housing, ensuring that attention does not fade after a single event.
Alongside the summit, the Commission is launching a European Housing Alliance. This alliance will gather member states, cities and regions, EU institutions and advisory bodies, housing providers and associations, and social partners, industry and civil society organisations.
Stay in the know about living in Spain—get our weekly newsletter for the latest travel, legal, and lifestyle news.
