COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The European Affordable Housing Plan
Date: 2025-12-16
Institutions: Directorate-General for Energy, European Commission
Subjects: building industry, circular economy, competitiveness, digitisation, distribution of EU funding, improvement of housing, subsidised housing, sustainable development, town planning, vocational training

EN 

  EN 

   EUROPEAN COMMISSION  Strasbourg, 16.12.2025  COM(2025) 1025 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The European Affordable Housing Plan {SWD(2025) 1053 final}  
 
 
Introduction 

’A home is not just four walls and a roof. It is safety, warmth, a place for family and friends. It 
is belonging. But for too many Europeans today, home has become a source of anxiety. It can 
mean debt or uncertainty.’ – President von der Leyen, 2025 State of the Union address 

Our  houses,  our  homes,  are  the  building  blocks  of  our  communities,  the  foundation  of  our 
society  and  democracy.  Housing  is  not  just  a  commodity,  but  a  fundamental  right  and  a 
cornerstone of human dignity. But across Europe, there is a palpable feeling of injustice at the 
sheer unaffordability and unavailability of housing. 

What  Europe  is  facing  is  more  than  a  housing  crisis.  It  is  a  social  crisis.  It  weakens  our 
cohesion,  and  it  threatens  our  competitiveness,  by  limiting  labour  and  educational  mobility, 
thereby  exacerbating  labour  shortages  in  growth  poles.  Europe  must  act  decisively  to  help 
make  housing  more  affordable  for  all  Europeans.  At  the  same  time,  efforts  to  improve 
affordability should go hand in hand with sustainability and quality. Energy-efficient, resilient 
homes that are built with the lowest possible carbon footprint reduce maintenance and utility 
costs  while  enhancing  long-term  value,  whereas  sufficient  quality  is  essential  to  deliver 
healthy,  safe,  and  dignified  living  conditions.  Integrating  these  objectives  will  ensure  that 
Europe’s housing policies deliver lasting social, economic, and environmental benefits.  

Today  the  Commission  is  proposing  a  plan  to  achieve  that  vision.  This  first-ever  European 
Affordable  Housing  Plan  presents  a  series  of  concrete  actions  to  help  tackle  the  structural 
causes  of  this  crisis  and  deliver  results  for  Europeans.  It  aims  to  increase  housing  supply, 
trigger investment and reforms, and support the people and the areas that are most affected. It 
also  shapes  a  new  way  in  which  EU  institutions,  national,  regional  and  local  governments, 
financial institutions and stakeholders can work together to address the housing crisis.  

Housing remains first and foremost a competence of Member States, regions and cities. The 
EU will play its full part, but only through joint action at every level can we ensure that all 
Europeans have access to the homes they deserve.  

1.  Europe’s housing crisis: a pressing and shared challenge 

Between  2013  and  2024,  house  prices  in  nominal  terms  have  increased  by  more  than  60% 
across  the  EU,  growing  faster  than  household  income,  while  average  rents  have  risen  by 
around  20%,  with  new  rents  having  become  significantly  more  expensive.  Investments  in 
housing supply markedly declined over the last decade. Supply has not kept up with evolving 
demand  due  to  high  construction  costs,  innovation  deficits,  shortages  of  skilled  labour  and 
excessive red tape. Residential building permits are down by 22% since 2021 and the existing 
housing stock is not used to its full potential, with around 20% of dwellings unoccupied.  

The Commission estimates that the EU will need more than two million homes per year to 
match  the  current  demand.  This  means  adding  about  650,000  homes  per  year  to  the  1.6 
million  built  currently.  Delivering  those  extra  housing  units  would  cost  about  EUR  150 
billion annually. 

The housing crisis  is  now increasingly affecting  a broader segment of society, as a growing 
number  of  middle-income  households  face  difficulties  in  accessing  affordable  housing. 
Essential workers – including teachers, nurses, fire fighters or police officers cannot afford to 
live in the communities they serve. Many young people are forced to drop out of their studies, 

1 

 
 
 
refuse  job  opportunities,  delay  starting  or  expanding  a  family  or  live  in  overcrowded  and 
substandard accommodation. The most disadvantaged in our society are struggling the most, 
given  rising  rents  and  limited  access  to  social  housing  leading  to  growing  risks  of 
homelessness. With living costs continuing  to  rise, more  and more  Europeans  are having  to 
make sacrifices to make ends meet. 

Certain  areas  feel  the  crisis  particularly  sharply.  Europe’s  cities  and  popular  tourist 
destinations  face  the  strongest  pressures.  At  the  same  time,  depopulating  and  rural  areas 
including  some  outermost  regions  of  the  EU  are  facing  declining  prices  and  difficulities  in 
accessing essential services – including social services – and infrastructure.  

Together  with  this  plan,  the  Commission  presents  an  analysis  of  the  key  drivers  of  the 
housing crisis1, which underpins the policy orientation and actions presented. 

2.  Europe’s response: A plan for affordable, sustainable and quality housing 

Europe’s shared housing challenge calls for a shared response. The EU can and must play a 
stronger role in supporting, coordinating, and amplifying national, regional and local efforts – 
not by replacing them, but by providing common ambition and resources. European solutions 
must  reflect  the  diversity  of  housing  needs,  markets  and  governance  systems  across  the 
continent while advancing our common objectives. 

The  actions  presented  in  this  Plan  are  based  on  broad  consultations,  including  a  public 
consultation  that  received  more  than  13,300  replies.  The  Plan  responds  to  the  call  of  the 
European  Council  of  October  2025  to  present  an  ambitious  and  comprehensive  plan  for 
affordable housing2. It builds upon the work of the European Parliament through its  Special 
Committee on the Housing Crisis in the EU and the Employment, Social Policy, Health and 
Consumer  Affairs  Council3.  The  Commission  has  also  gathered  inputs  from  the  European 
Committee of the Regions, the European Economic and Social Committee, representatives of 
cities and regions across the EU and a broad range of stakeholders. The plan further draws on 
the independent recommendations of the Housing Advisory Board4. 

The European Affordable Housing Plan rests on four pillars where action is needed:  

I.  Boosting supply  
II.  Mobilising investment 
III.  Enabling immediate support while driving reforms 
IV. 

Supporting the most affected  

Within  these  four  pillars,  this  Plan  sets  out  ten  key  areas  of  action  where  the  EU  can  add 
value  and  support  efforts  by  other  public  authorities  and  stakeholders,  including  a  new 
legislative  initiative  on  short-term  rentals  as  part  of  an  Affordable  Housing  Act,  a 
simplification package and mobilising new investments under this and the next Multiannual 
Financial  Framework (MFF).  It  also  proposes areas where Member States  could  and should 
act  as  a  priority.  A  new  European  Housing  Alliance  will  support  these  actions  with 
cooperation  and  sharing  of  good  practice  between  Member  States,  cities,  regions,  other  EU 
institutions and stakeholders.  

1 See Staff Working Document. COM(2025) 1025 
2 European Council conclusions, 23 October 2025. See: 20251023-european-council-conclusions-en.pdf 
3 Presidency Conclusions, 1 December 2025. 
4 https://housing.ec.europa.eu/document/e8944c5e-6098-495c-8ecd-da7da9738588_en  

2 

 
 
 
The  European Affordable  Housing  Plan  is  presented  together  with  a  revision  of  State  aid 
rules  on  Services  of  General  Economic  Interest  to  better  support  affordable  housing,  a 
European  Strategy  for  Housing  Construction,  and  a  Communication  and  proposal  for  a 
Council recommendation on the New European Bauhaus. It will be complemented in 2026 
by  a  Citizens  Energy  Package  aimed  at  further  lowering  energy  bills,  delivering  a  just 
transition, eradicating energy poverty and empowering people and communities. 

Pillar I. Boosting supply 

Addressing the mismatch between housing supply and demand requires a substantial increase 
in new homes, especially in high-demand areas.  Expanding social and affordable housing is 
particularly important to support low- and middle-income households. 

Housing supply is impeded by low productivity, insufficient scale and capacity, and high costs 
in  the  construction  and  renovation  industry,  as  well  as  a  lack  of  skilled  labour.  Many  and 
complex rules, at all levels of governance, lead to additional delays and costs. Inspired by the 
New European Bauhaus, Europe must lead a housing transformation that unites affordability 
with  sustainability  and  quality  to  create  inclusive,  future-proof  living  spaces.  Investment  in 
digitalisation at every stage of housing planning, design, permitting and operation will further 
support housing supply. 

Maximising  the  efficient  use  of  the  existing  building  stock  –  avoiding  unnecessary 
demolitions  and  waste  –  should  be  a  priority,  alongside  new  construction.  This  includes 
renovating  inefficient  buildings  and  repurposing  them  and  bringing  vacant  properties  back 
into use, as well as regulating short-term rentals (STRs) where they compete with long-term 
housing use. Improving transport links, broadband connectivity, and the provision of essential 
services, can also make underused housing in rural areas more viable and attractive, helping 
to relieve pressure on urban markets and supporting balanced, sustainable development across 
the EU. 

Action  1.  Strengthening  productivity,  capacity  and  innovation  of  the  construction 
industry 

For  the  last  ten  years,  construction  and  renovation  costs  have  grown  faster  than  inflation, 
while  the  industry’s  productivity  has  stagnated.  Construction  is  vital  for  Europe’s 
competitiveness  and  it  needs  to  increase  its 
capacity and scale to meet housing demand. More 
investment  in  innovation  and  technology,  a 
shift  to  a  more  circular  economy,  innovative 
materials  and  use  of  modern  methods  of 
construction  enabled  by  new  harmonised 
standards would save time and costs and improve 
supply chain resilience.  

for  Economic 
Spain’s  Strategic  Project 
Recovery 
on 
industrialised  construction  aims  to  provide 
15,000 affordable, quality and energy-efficient 
housing  units  per  year,  with  an  investment  of 
EUR 1.3 bn over 10 years expected to mobilise 
EUR 1.4 of private investment for every public 
euro.  

Transformation 

and 

Labour and skills shortages in the construction sector are now three times higher than they 
were  a  decade  ago.  More  than  4  million  job  openings  are  expected  by  20355.  Therefore, 
careers  in  construction  need  to  be  made  more  attractive  for  new  talent,  including  women. 
While 11% of EU mobile workers and 34% of the mobile self-employed work in construction, 

5 European Centre for the Development of Vocational Training (CEDEFOP) Skills Forecast. 

3 

 
 
 
only  1% of construction services  are provided cross-border within the EU. The Fair Labour 
Mobility Package in 2026 will improve enforcement of EU rules for mobile workers. 

A healthy, well-functioning and competitive market for construction and renovation is also 
essential to keep prices down. The Commission will be vigilant with regards to any evidence 
of anti-competitive activities that may warrant taking action at EU level. 

Goal 
How 

A stronger industry to boost housing construction and renovation 
To  support  the  construction  industry  in  stepping  up  to  the  challenge  of 
supplying affordable housing, the Commission will: 

• 

in  close  coordination  with  industry,  promote  innovation  in 
construction  and  renovation  materials  and  methods,  and 
support a shift to more circularity and digital processes, through a 
new  European  Strategy  for  Housing  Construction  presented 
together with this plan6; 

•  ensure  that  companies and professionals  can provide construction 
services  across  borders,  without  lowering  labour  and  social 
standards, through a Construction Services Act (Q4 2026); 

training  and  apprenticeship  programmes 

•  address  skills  shortages  in  the  construction  sector,  by  rolling  out 
large-scale 
in 
construction-related  professions  via  the  Pact  for  Skills,  New 
European  Bauhaus  Academy  and  Erasmus+,  and  promoting 
innovation  in  construction  in  curricula,  based  on  the  Build  Up 
Skills initiative7; 

•  monitor  any  potential  anti-competitive  practices 

the 
construction  sector,  and  where  necessary  take  action,  in  close 
cooperation  within  the  European  Competition  Network  on  cases 
pursued by its members. 

in 

Member States are encouraged to make use of the opportunities offered 
by  EU  law  by  supporting  investments  that  can  render  construction  more 
affordable  –  including  uptake  of  modern  methods  of  construction  and 
renovation  as  well  as  innovative  materials,  accessibility  solutions,  and 
large-scale  apprenticeship,  upskilling  and  reskilling  efforts  –  as  well  as 
more  sustainable  –  through  investments  in  low-carbon  and  bio-based 
European  manufacturing,  or  integration  of  relevant  criteria  in  public 
procurement and support schemes. 

Action 2. Cutting red tape to accelerate housing supply  

Housing  supply  is  subject  to  many  stringent  rules  that  are  set  at  EU,  national,  regional  and 
local  levels,  and  which  aim  to  preserve  our  safety  and  quality  of  life,  promote  social  and 
economic  objectives,  and  protect  our  environment  and  cultural  heritage.  These  rules  take 
many  forms  including  building  codes,  land-use  and  zoning  policies,  procurement  and  local 

6 COM(2025) 991 
7 The initiative, under the LIFE Clean Energy Transition sub-programme, is being expanded to all Member States. 

4 

 
 
  
 
taxes. But too often they lead to administrative complexity resulting in unnecessary costs and 
delays, restricting the supply of housing where it is most needed. 

The Commission is already taking action to simplify the EU legislative framework in ways 
which  will  benefit  housing  supply,  and  it  will  continue  to  do  so,  including  by  integrating 
housing  in  other  relevant  simplification  actions  where  appropriate.  In  July  2025,  the 
Commission adopted amendments to the sustainable finance framework to simplify reporting 
for the construction sector and to reduce administrative burden, including for the many micro 
and small and medium-sized enterprises (SMEs) active in construction and renovation8. On 10 
December 2025, the European Commission presented a Regulation to speed up environmental 
assessments9,  accelerating  and  streamlining  permitting  processes  for  strategic  sectors 
including  affordable  and  social  housing.  There  is  further  scope  to  simplify  EU  rules,  and 
make better use of existing flexibilities, to help boost housing supply.  

At the same time, most rules that influence 
housing supply are set by Member States, 
including  at  regional  and  local  levels, 
often resulting in complex juxtaposing rules 
across  the  EU  and  within  some  Member 
States.  Examples  include  limits  on  building 
height  or  volume,  through  to  imposing 
minimum  plot  sizes  or  numbers  of  parking 
spaces, all of which restrict housing density, 
raise  costs  and  require  more  land.  Project 
information 
in  separate 
is  often  held 
systems, not all of them digital, that require 
people to review documents manually.  

With a one-stop-shop portal to check the applicable 
rules and by shifting from an approach of ’you need 
a permit, unless’ to ’you don't need a permit, unless’, 
the  Dutch  initiative  Omgevingswet  has  reduced 
permitting time from 26 weeks to 8 weeks. 
The  German  ’Hamburg  Standard’  is  a  set  of  65 
measures  designed  to  reduce  the  cost  of  subsidised 
housing construction to EUR 3,000 per m2. 
Estonia  has  a  fully  digitalised  building  permit 
system  which  is  used  by  all  79  municipalities  and 
processes  over  42,000  procedures  annually. All 
authorities evaluate the same project simultaneously 
online.  This  saves  a  significant  amount  of  time  and 
money. 

Simplifying rules and procedures that restrict housing supply therefore requires a joint effort 
by EU, national, regional and local authorities, while respecting wider policy goals, including 
for our climate and environment.  

Goal 
How 

Faster and simpler administrative procedures for housing supply 
The Commission will contribute  to  cutting  red tape to  facilitate  the supply of 
affordable  and  sustainable  housing  where  it  is  most  needed  by  presenting  a 
housing simplification package (2027) including: 

•  a comprehensive mapping of relevant EU legislation and initiatives and 
their combined impact on housing supply and affordability identifying 
any  opportunities 
to  reduce  unnecessary  administrative  burden 
particularly  for SMEs,  accelerate permitting  and  renovation processes, 
and improve cost efficiency, while respecting wider policy goals; 

•  support to Member States in the effective implementation of EU rules, 
including simplification opportunities introduced under the proposal for 
a  Regulation  on  speeding  up  environmental  assessments  and  sharing 
best  practices  of  simplification  at  national,  regional  and  local  level 
within  the  European  Housing  Alliance  with  a  particular  focus  on 

8 Commission Delegated Act amending the Taxonomy Disclosures, Climate and Environmental Delegated Acts 
9 COM (2025) 984 

5 

 
 
 
 
digitalisation as an enabler.  

Member  States  are  encouraged  to  simplify  national,  regional  and  local 
planning,  zoning  and  permitting  rules  and  building  codes  as  well  as  increase 
administrative  capacity,  including  for  digitalisation.  They  are  also  invited  to 
make  use  of  the  flexibilities  offered  by  the  Public  Procurement  Directives  to 
promote  the  cost-effective  and  efficient  provision  of  housing,  in  particular 
through accelerated procedures and joint procurement. 

Action 3. Combining affordability, sustainability and quality in housing  

Increasing  the  affordability  of  housing  should  not  come  at  the  expense  of  sustainability, 
including  resilience,  or  quality.  Energy  costs  represent  a  major  share  of  households’  overall 
living  costs.  In  the  Affordable  Energy  Action  Plan,  the  Commission  encouraged  Member 
States  to  lower  taxes  and  levies  to  incentivise  electrification  and  reduce  prices.  Simpler 
contractual  terms  and  more  transparency  for  consumers  will  boost  competition  and  lower 
prices.  In  addition,  the  construction  sector  has  huge  potential  to  reduce  its  greenhouse  gas 
emissions, waste and water use by switching to more innovative, decarbonised and biobased 
materials. 

Every  euro  spent  on  energy  efficiency  in  housing  translates  into  twelve  euros  in  energy 
savings  over  the  lifetime  of  the  investment.  Advancing  renovations  to  increase  the  energy 
performance of residential buildings is therefore key to cost reductions. However, people need 
access to both finance and trustworthy information to take action. Households should also be 
empowered to produce their own renewable energy, so they can save on their energy bills and 
generate benefits which can be shared with their neighbours in an energy community.  

Sustainability  in  housing  also  concerns  materials,  water,  local  mobility,  exposure  to  air 
pollution  and  noise,  and  adaptation  to  a  changing  climate.  Integrating  water  resilience, 
sustainable water management and sound flood risk management in housing developments, as 
set  out  in  the  EU  Water  Resilience  Strategy10,  will  enable  long-term  sustainability  and 
affordability.  

Social  and  affordable  housing  should  be  of  the  quality  that  Europeans  deserve,  with 
particular attention to inclusiveness, fairness, health, safety, accessibility and adaptability for 
all  generations. Since its inception in  2020, the  New European Bauhaus11  has  promoted the 
values of sustainability, quality and inclusivity to improve people’s daily lives and shape their 
neighbourhoods. It supports affordable, sustainable and quality housing by scaling up funding 
and  developing  and  replicating  new  solutions  for  more  inclusive,  fair  and  accessible 
neighbourhoods. Also other initiatives such as the EU Mission on Climate Neutral and Smart 
Cities and the EU  Mission  on Adaptation  to  Climate  Change promote the use of innovative 
and cost-saving solutions for affordability, sustainability, climate resilience and quality in the 
built environment.  

10 COM(2025) 280 final 
11 https://new-european-bauhaus.europa.eu/index_en  

6 

 
 
 
 
Goal 
How 

Reduce living costs for Europeans while maintaining high standards 
The Commission will:  

•  reduce  energy  bills  for  households  by  speeding  up  renovation 

through: 

o  new  Partnerships  for  Better  Homes  to  overcome  practical 
barriers  at  local  level  to  delivering  finance  and  achieving  scale 
(2026); 

o  guidance on one-stop shop services for the renovation of housing 
as part of a Support Package for Financing Energy Efficiency; 

o  support to Member States in developing comprehensive National 

Building Renovation Plans (2026); 

•  help communities and households save money and obtain additional 
benefits  from  renewable  energy  by  supporting  the  development  of 
tackle  existing 
energy  communities  with  practical 
in  an  Energy 
administrative, 
Communities Action Plan (2026); 

to 
financial  barriers 

technical  and 

tools 

•  promote  the  regeneration  of  neighbourhoods  and  improve  access  to 
funding  for  community-led  solutions  for  affordable  housing  via  the 
New European Bauhaus12. 

Member States are encouraged to prioritise the renovation and repurposing of 
existing  buildings  while  avoiding  unnecessary  demolitions  as  a  way  to 
revitalise neighbourhoods. 

Pillar II. Mobilising investment  

Overall investment in housing supply, including both public and private funding, has declined 
in  many Member States  and remains below the levels  needed to  boost  housing  supply. This 
can  be  traced  back  to  diminished  investment  from  several  key  sources  such  as  households, 
banks and public budgets. Several factors are at play: less public funding available following 
the  great  financial  crisis,  rising  land  and  construction  costs,  tighter  lending  conditions.  To 
generate  the  investment  needed  to  meet  the  housing  gap  over  the  next  decade,  it  will  be 
essential to mobilise more public and private investments.  

The EU is  supporting  this objective by already  mobilising at  least EUR  43 billion housing 
related investment under the current MFF through Cohesion Policy Funds, InvestEU, LIFE, 
the  Single  Market  Programme  and  Horizon  Europe  as  well  as  through  NextGenerationEU. 
Looking  ahead,  the  Social  Climate  Fund  will  finance  investments  for  energy  efficiency  and 
building renovation and clean heating and cooling.  

12 COM(2025) 1026 and COM(2025) 1027 

7 

 
 
 
 
 
 
 
But  more  can  and  is  being  done.  The  mid-term 
review (MTR) Cohesion policy Regulation13 now 
allows  Member  States  and  regions  to  allocate 
funding  for  affordable  housing  on  top  of  the  EUR 
10.4 billion14 already planned for energy efficiency 
and social housing, while also providing them with 
flexibilities 
incentives  when 
financial 
towards  housing.  These 
reprogramming  funds 
regulatory  flexibilities  and  the  possibility  for  a 
higher Union co-financing rate for housing investments will remain in place until 2029-2030, 
which  will  facilitate  further  re-programming  in  the  coming  years.  Finally,  a  new  financial 
instrument model will help leverage Cohesion policy funding with other resources15.  

As  a  result  of  the  mid-term  review  of 
Cohesion  policy,  Croatia  will  expand  its 
housing stock for affordable rentals in urban 
areas. EU funding of EUR 15 million will be 
loans 
leveraged 
managed  by  the  national  promotional  bank 
HBOR. A part of the loans may be written off 
upon the fulfilment of criteria linked to New 
European Bauhaus principles. 

risk-sharing 

through 

and 

New funding possibilities will be unlocked in the next long-term EU budget for 2028-2034. 
In particular, the future National and Regional Partnership Plans include social and affordable 
housing as one of their specific objectives, allowing Member States to address  their specific 
challenges with housing related investments and reforms16. The EU Facility also contributes 
to social and affordable housing while Erasmus+ can provide housing  support to students to 
facilitate and increase access to mobility, volunteering and learning. Moreover, the European 
Competitiveness  Fund  includes  social  infrastructures  among  its  general  objectives  and  it 
enables supporting the decarbonisation of buildings. 

As well as enhanced support at EU level, Member States must also step up investment. That is 
why the Commission is making it easier for Member States to financially support affordable 
housing via the revision of State aid rules set out below. 

To mobilise investments  in  housing supply, a 
broad coalition of financial actors is essential. 
The  European  Investment  Bank  (EIB)  is 
advancing  this  through  its  Action  Plan  for 
Affordable and Sustainable Housing. National 
and  regional  promotional  banks  and  other 
international financial institutions, such as the 
for  Reconstruction  and 
European  Bank 
Development  (EBRD)  and  the  Council  of 
Europe  Development  Bank  (CEB),  play  a 
critical  role  in  mobilising  public  and  private 
capital and providing advisory support.  

The Danish ‘Landsbyggefonden’ National Building 
Fund  is  a  revolving  fund  set up  in  1967  to  support 
non-profit  housing.  It  is  a  self-financing  scheme 
financed mainly through a charge on tenant rents at 
non-profit  housing  organisations,  and  its  resources 
are  used  to  renovate,  maintain,  and  build  social 
housing and provide social services.  
Similar revolving funds exist in other Member States 
including  Austria,  Slovenia,  and  the  Netherlands, 
where  they  are  used  to  support  social  housing 
development, 
long-term 
maintenance,  often  combining  tenant  contributions 
with public financing to ensure long term stability. 

renovation, 

and 

Developing  and  reinforcing  scalable,  innovative  financing  models  building  on  successful 
examples like revolving funds17 will further help build synergies between public and private 
capital.  

13  Regulation of  the  European  Parliament  and  the  Council  amending  Regulations  (EU)  2021/1058 and  (EU)  2021/1056  as 
regards specific measures to address strategic challenges in the context of the mid-term review. 
14 Including national co-financing 
15 See: swd-affordable-housing-2025_en.pdf 
16 The impact can be further increased by the use of policy loans to Member States which will be able to support the National 
and Regional Partnership Plans. 
17 A  revolving  fund  is  a  financial  scheme  used  to  continuously  replenish  and  reuse  capital  for  specific  purposes,  such  as 
financing projects or providing loans. As the loans get reimbursed, the capital is reloaned for another project, allowing it to be 
used repeatedly. 

8 

 
 
 
Action 4. Mobilising additional public and private investment  

Opportunities  for  investment  in  affordable  and  social  housing  remain  too  fragmented  and 
often lack the visibility needed to attract investors and project promoters. Private investment 
is essential, and all mechanisms, including Public Private Partnerships need to be brought to 
bear. The full potential of Europe’s housing investment ecosystem needs to be unlocked. To 
address this, the Commission, in close cooperation with the EIB Group, national and regional 
promotional banks and international financial institutions, like the CEB, the EBRD, and other 
key partners, is developing a new Pan-European Investment Platform for affordable and 
sustainable housing.  

In this context, the Commission strongly welcomes that national and regional promotional 
banks will aim to invest EUR 375 billion in resources by 2029 into social, affordable, and 
sustainable housing, including through the InvestEU programme, and that the EIB Group has 
substantially increased its financing for affordable and sustainable housing and aims to further 
increase it in the next years, extend support across all Member States and leverage EU funds 
to  provide  advisory  support  to  Member  States,  regions  and  cities.  The  Commission  also 
welcomes the significant support that international financial institutions such as the CEB and 
the EBRD are already providing and will continue to deliver in the coming years. 

The  Platform  will  support  collaboration  between  public  authorities  and  private  investors  to 
pool resources and scale up investment in housing supply across the EU. It will provide direct 
access  to  information  about  financing  opportunities,  best  practices,  case  studies,  and 
innovative  approaches  across  Member  States.  It  will  help  develop  scalable  and  innovative 
financing  models and promote project  aggregation through a digital portal,  an expert group, 
and voluntary national  financing  hubs. The Platform will complement the tools  proposed as 
part of the next multiannual financial framework to make access to EU funds for beneficiaries 
easier, in particular the Single Gateway18. It will work in synergy, and when relevant develop 
joint  actions,  with  the  European  Energy  Efficiency  Financing  Coalition  (EEEFC),  set  up  in 
2024 to mobilise private finance in energy efficiency.  

A  barrier  to  investment  highlighted  by  market  practitioners  is  the  lack  of  a  reference 
framework for assessing the social outcome of housing investments, resulting in uncertainty 
in  project  evaluations,  high  due  diligence  costs  and  disproportionate  reporting  requirements 
for housing providers. Exploring a voluntary, EU-level guidance grounded in market practices 
could facilitate public-private cooperation and mobilise investments without new labelling or 
disclosure obligations. 

18 The Single Gateway will become the single access point for consolidated information on funding opportunities for project 
promoters under next MFF. 

9 

 
 
 
 
Goal 

How 

Increase  public  and  private  investment  for  affordable  and  sustainable 
housing 
The Commission will: 

• 

improve access to financing opportunities, best practices, and innovative 
financing approaches to mobilise public and private investment through 
a  new  Pan-European  Investment  Platform  for  affordable  and 
sustainable  housing,  including  a  digital  portal,  an  expert  group  and 
national hubs (Q3 2026); 

•  mobilise  new  investments  in  housing  under  this  MFF  including  an 
additional  EUR  10  billion  in  investment  estimated  in  2026  and  2027 
through InvestEU19 and at least EUR 1.5 billion in proposals received 
thus  far  from  Member  States  and  regions  to  reprogramme  Cohesion 
funds  under  the  Mid-term  review20. Additional  support  will  also  come 
from the Social Climate Fund; 

•  offer  new  opportunities  to  scale  up  housing  investments  under  the 
next MFF, in particular under National and Regional Partnership Plans 
and the EU Facility, as well as the European Competitiveness Fund and 
its new ECF  InvestEU instrument,  building  on  the  successful model  of 
the InvestEU programme; 

•  help Member States develop scalable and innovative financing models 
for  housing  investments,  such  as  debt/equity,  blending,  housing  bonds, 
revolving funds, through sharing best practices and technical assistance, 
using EU funds where appropriate; 

•  explore  developing  a  voluntary,  market-led,  investment  framework 
for  affordable  and  social  housing  to  help  investors  scale  up  their 
investments; 

•  provide  guidance  to  Member  States  to  assist  them  in  designing 
financial  and  legal  solutions  to  support  social  and  affordable 
housing, that also takes into account public debt considerations. 

Member States and regions are encouraged to step up investments to support 
social and affordable housing, including through taking up financial instruments 
and  blended  funding  under  the  current  cohesion  policy  and  through  their 
national and regional partnership plans under the next MFF. 

Action 5. Enabling faster and simpler public support for social and affordable housing  

The  Commission  is  responding  to  the  requests  from  local,  regional  and  national  authorities 
and stakeholders to review State aid rules to facilitate the funding of affordable housing.  

Under the existing EU State aid rules, Member States can support social housing in a flexible 
manner  under  the  Decision  on  Services  of  General  Economic  Interest  (‘SGEI  Decision’)  to 
benefit  disadvantaged  and  socially  less  advantaged  groups,  including  people  experiencing 

19 Including thanks to the additional guarantee from the Omnibus amendment. 
20 Proposals already received by Member States as of 11 December 2025 including national co-financing.  

10 

 
 
 
 
 
homelessness. This support does not need to be notified to the Commission, regardless of the 
amount.  Support  for  affordable  housing,  however,  was  capped  at  EUR  15  million  per  year, 
with higher amounts requiring notification21.  

To facilitate support for affordable housing for low- and middle-income households, including 
essential  workers,  households  with  specific  family  circumstances,  persons  with  disabilities 
and students,  the Commission has decided to  revise the SGEI Decision. While this decision 
leaves the rules for social housing support fundamentally unchanged, it expressly includes a 
new  category  of  affordable  housing  among  the  categories  exempted  from  notification  for 
which there is no maximum compensation cap. In this way, Member States can maintain their 
existing  social  housing  schemes  and  create  additional  affordable  housing  schemes  for  other 
target groups. The revision will also simplify, update, and clarify certain concepts in the SGEI 
Decision. The Commission services will provide guidance and support on demand to Member 
States to help them design social and affordable housing SGEIs in line with State aid rules. 

Goal 
How 

Boost public investment in affordable and social housing 
Together with this plan, the Commission has revised State aid rules to:  

•  allow Member States to support affordable housing projects without 
prior notification to and authorisation by the Commission when the 
conditions outlined in the SGEI Decision are met; 

•  allow them to define the modalities of support, target groups, eligibility 
criteria,  housing  price  and  quality  standards  for  social  and  affordable 
housing according to their context and housing needs; 

•  simplify  State  aid  administrative  requirements  on  notification, 

monitoring and reporting for all SGEIs. 

Pillar III. Enabling immediate support while driving reforms  

Certain neighbourhoods, particularly in cities but also other tourist hotspots, are experiencing 
acute housing affordability pressures. In these housing stressed areas, the rapid expansion of 
short-term  rentals  (STRs)  combined  with  speculative 
investment  practices  may  be 
intensifying competition for limited housing stock which drives up prices. Local residents risk 
being pushed out of the market due to unaffordable prices and rents while others cannot take 
up  jobs  or  education  opportunities  because  they  are  unable  to  find  housing  that  they  can 
afford. A  recent  Eurobarometer  survey22  has  shown  that  by  far  the  most  urgent  concern  for 
Europeans living in cities is the lack of affordable housing. 

The EU will support areas under housing stress to enhance affordable housing via legislative 
and non-legislative measures. This will include a framework for public authorities to identify 
stressed  housing  areas  and  clarify  what  targeted  and  proportionate  actions  may  be  taken  to 
manage STRs and protect and promote housing affordability in those areas, including through 
faster planning and permitting. 

21 Support for affordable housing falls under the general category of services of general economic interest (‘SGEIs’). 
22 Public opinion on urban challenges and investment in cities - June 2025 - Eurobarometer survey. 

11 

 
 
 
 
This  needs  to  be  complemented  by  long-term  structural  reforms  to  enhance  housing 
affordability in a variety of areas under the control of Member States such as action on vacant 
properties, developing social housing, local transport, taxation and administrative procedures.  

The  role  that  increased  financialisation  and  speculation  are  playing  in  the  housing  crisis 
overall needs to be better understood, particularly given the absence of data and transparency 
in this area.  

Action 6. Addressing short-term rentals in areas under housing stress  

Short-term accommodation booked via online platforms offers many benefits: greater choice, 
additional  amenities  for  consumers,  extra  income  for  hosts,  an  incentive  to  invest  in 
renovation,  and  a  boost  to  tourism,  incomes  and  jobs.  But  its  rapid  growth  of  almost  93% 
between  2018-2024  has  evolved  from  occasional  peer-to-peer  services  towards  a  significant 
commercial activity, which may have limited affordable housing supply for local residents in 
some areas. In very popular destinations STRs can represent as much as 20% of the housing 
stock. There is a need to preserve the benefits of STRs while reducing the negative impacts.  

National and local authorities need more legal certainty to define appropriate measures. STR 
service  providers  also  need  certainty  with  regards  to  what  is  legally  possible. There  are 
concerns  that  STRs,  in  particular  those  run  by  professional  hosts,  are  competing  with 
traditional accommodation providers, including SMEs, that must comply with stricter national 
requirements such as safety, liability and consumer protection rules.  

The  Regulation  on  Short-Term  Rentals23,  applicable  from  May  2026,  will  bring  more 
transparency  and  help  public  authorities  to  regulate  the  market  in  a  proportionate  way  by 
requiring compulsory registration of hosts, and sharing of data on actual transactions between 
digital platforms and national authorities. In addition, it will be important that the Regulation 
is correctly implemented, including efforts by online platforms to perform random checks and 
take down notified illegal listings. 

Complementing  the  existing  regulation,  the  Commission  will  propose  a  legislative  act 
addressing  short-term  rentals  and  establishing  a  coherent,  data-driven,  clear  and  predictable 
EU  legal  framework  to  enable  and  support  local  authorities  in  taking  targeted  and 
proportionate action particularly in areas of housing stress and supporting sustainable tourism. 
This  will  deliver  greater  legal  coherence  in  the  Single  Market  for  national  and  local 
authorities to manage STRs, providing them with flexibility in full respect of subsidiarity. It 
will  enable  Member  States,  cities  and  regions  to  balance  the  benefits  of  STRs  against  the 
potential  negative  effects  on  housing  markets  and  communities.  The  initiative  would  also 
respond to the Letta Report’s call for sector-specific action in fast-growing service markets to 
build a more sustainable Single Market. 

 Goal  Address shortages in areas of housing stress 
How 

The Commission will: 

•  propose  a  new  legislative  initiative  on  short-term  rentals  to  enable 
public  authorities  to  take  a  set  of  justified  and  proportionate  measures, 
particularly in areas of housing stress, and tackle remaining issues such as 
consumer  protection  and  distinguishing  between  professional  and  non-

23 Regulation (EU) 2024/1028 

12 

 
 
 
professional hosts; 

• 

this initiative will be a central component of an  Affordable Housing Act 
to  support  public  authorities  in  identifying  areas  of  housing  stress,  based 
on publicly available data, and enable them, in full respect of subsidiarity, 
to  take  measures  to  protect  and  promote  housing  affordability  in  those 
areas, including by simplifying administrative procedures such as planning 
and permitting (legislative and non-legislative, Q4 2026). 

Member  States  are  encouraged  to  monitor  data  on  STRs  in  their  territory  and 
assess their impact on housing affordability.  

Action 7: Addressing speculation in the housing market 

Private  investment  in  housing  is  needed,  and  a  significant  share  comes  from  pension  and 
insurance funds, which typically pursue long-term,  stable returns. Such investment  plays an 
important  role  in  supplying  social  infrastructure,  including  affordable  and  sustainable 
housing. At  the  same  time,  indications  of  short-term  profit-seeking  investments  are  raising 
concerns about market distortions, overvaluation and speculative pressures. In many cities and 
tourist  destinations,  housing  prices  are  becoming  increasingly  detached  from  local  incomes. 
Limited data and lack of transparency on ownership and key real estate transactions  hamper 
public  authorities  from  monitoring  market  developments.  Improving  the  collection  and 
analysis of such data is a prerequisite to assessing and subsequently taking action to address 
the extent and impact of speculative behaviour on the housing market. 

Increasing the quantity and availability of affordable and social housing and supporting non-
profit or limited profit housing providers, including cooperative housing and community land-
trusts  can  help  address  price  volatility  by  keeping  prices  affordable  on  the  long  term. 
However,  such  providers  face  barriers  to  scaling  up  such  as  a  lack  of  legal  recognition  and 
difficulties  accessing  finance. Tax  policies  and  other  measures  can  also  mitigate  the  risk  of 
speculative behaviours. 

Goal 
How 

Identify speculative behaviours in the housing market  
The Commission will: 

•  present  an  analysis  of  housing  price  dynamics,  including  available 
evidence  of  speculation  patterns,  data  gaps  and  economic 
consequences, as well as propose follow-up actions where needed (Q4 
2026); 

•  promote greater transparency in the residential property market by 
working with public authorities to shed light on property ownership and 
transactions in real estate and identify speculative patterns; 

• 

• 

facilitate  investments  in  non-profit  and  limited-profit  housing 
providers by identifying technical and legislative barriers, developing a 
market-led investment framework for social and affordable housing and 
mobilising  investments  under  the  Pan-European  Investment  Platform 
(see action 4); 

facilitate peer learning and innovation in tackling housing speculation, 
building  on  local  and  national  experiences  (e.g.  on  taxation  and 
measures to address vacant properties). 

13 

 
 
Member  States  are  encouraged  to  put  in  place  measures  to  limit  harmful 
speculative behaviours in the housing market, including by designing effective 
taxation policies, improving market transparency and dedicating a set share of 
new  housing  developments  to  social  and  affordable  housing,  reflecting  local 
housing needs.  

Action 8: Driving forward Member States’ structural reforms 

To increase housing affordability, Member States need to implement structural reforms across 
various policy areas. The Commission will support these efforts through a variety of tools and 
through strategic guidance under the European Semester.  

Reducing  national,  regional  and 
in 
administrative capacity and digital solutions is key for increasing the supply of affordable and 
social housing. Public authorities also need to ensure that there is appropriate land available 
for housing development and make better use of the existing building stock. 

local  red  tape,  and  mobilising 

investment 

Reforms  should  support  both  urban  areas  facing  shortages  as  well  as  rural  and  remote 
territories experiencing demographic decline. In housing stressed areas, this means increasing 
supply  through  new  buildings  as  well  as  renovation,  repurposing  and  urban  densification, 
ensuring that these projects benefit from simpler and faster administrative procedures. In less 
pressured  areas,  this  means  support  for  the  ‘right  to  stay’  by  supporting  the  renovation  and 
upgrading  of  local  housing  in  places  with  economic  potential  alongside  investment  in 
transport, infrastructure and services, in line with EU cohesion policy. 

Taxation is a key supporting tool to address 
housing affordability. For example, taxes are 
a  major  component  of  housing  costs, 
including during purchase.  

Social  housing  needs  particular  attention  as 
its provision in the EU has declined in recent 
decades.  While  recognising  the  divergent 
situation  and  traditions  of  Member  States, 
there  is  a  need  to  reverse  the  current  trend 
where  according  to  the  OECD  the  average 
share of social housing today represents only 
roughly 6-7% of the EU housing stock24.  

In  France  18%  of  households  (over  10  million 
people)  live  in  social  housing.  The  comprehensive 
state-regulated  system  is  mainly  based  on  long-term 
financing  from  savings  accounts  (Livret  A)  and 
contributions  from  employers  through  the  Employer 
Contribution to Construction Effort (PEEC). 
In  Austria,  under  the  Vienna  model,  one  in  four 
Viennese  residents  lives  in  one  of  the municipal, 
cooperative, or limited-profit housing units that have 
been  developed  over  the  last century. Nearly  70% of 
dwellings have the highest Category A standards.  
Czechia  and  Poland  are  building  social  housing 
systems  to  house  low-income  families  and  reduce 
homelessness while incentivising private landlords to 
lease through social renting agencies.  

24 For the purpose of OECD statistics, “social rental housing” is defined as residential rental accommodation provided at sub-
market prices and allocated according to specific rules rather than market mechanisms (Salvi Del Pero et al., 2016). 

14 

 
 
 
 
Goal 

How 

Increase  housing  affordability  and  resilience  of  housing  markets  through 
structural reforms  
The Commission will: 

•  help  Member States design effective reforms  for  affordable and social 
housing  through  stronger  monitoring  and  targeted  recommendations 
under the European Semester; 

• 

foster  European  statistics  related  to  housing  to  further  strengthen 
evidence-based  and  data-driven  policymaking  in  view  of  better 
allocation  of  resources  for  housing  and  establish  an  EU-level  access 
point for housing data and analysis; 

•  work  with  Member  States,  including  in  the  context  of  the  Housing 
Alliance, to identify on the basis of the above data and analysis where 
EU policy and funding can have the biggest impact to  improve the 
functioning of housing markets; 

•  support  Member  States  to  design  taxation  policies  that  promote 
housing  affordability  by  assessing  the  impact  of  housing-related  taxes 
on  housing  markets,  issuing  practical  guidance  and  facilitating  the 
exchange of good practices; 

•  provide  technical  and  financial  support  to  Member  States,  regions 
and cities to carry out reforms through the European Housing Alliance, 
through the Technical Support Instrument25 and under the next MFF. 

Member  States  are  encouraged  to  implement  ambitious  and  comprehensive 
reforms  focused  on  affordability  making  full  use  of  the  data-sharing,  mutual 
learning  and  technical  assistance  opportunities  available,  including  within  the 
European Housing Alliance. 

Pillar IV. Supporting the most affected  

The  housing  crisis  does  not  affect  all  people  equally.  Some  groups  are  disproportionately 
impacted by rising housing costs and limited access to affordable homes. Lack of affordable 
housing prevents young people, particularly from disadvantaged backgrounds, from taking up 
education,  traineeship,  apprenticeships  and  employment  opportunities,  with  far-reaching 
economic and social  consequences26.  It  delays family formation.  Students and apprentices 
are  particularly  exposed  to  high  housing  costs,  which  may  discourage  them  from  pursuing 
studies,  participating  in  mobility  programmes  such  as  Erasmus+,  or  completing  their 
education. 

Ensuring  access  to  affordable  housing  for  essential  workers  –  such  as  healthcare  staff  and 
care  professionals,  teachers  or  emergency  services  personnel  among  others  –  is  vital  for 
maintaining  resilient  and  inclusive  communities.  These  workers  often  encounter  housing 
shortages or high costs, particularly in urban areas where their services are most needed. The 
revision  of  State  aid  rules  for  affordable  housing  presented  by  the  Commission  will  help 

25 Within the 2027 Technical Support Instrument call. 
26 EU statistics o income and living conditions (SILC) suggests that on average 42% of young people aged between 16- 29 
who are at risk of poverty spend more than 40% of their income on housing.  

15 

 
 
 
 
 
Member  States  facilitate  support  to  affordable  housing  for  low-  and  middle-income 
households, including essential workers. 

In  2021,  all  Member  States  committed  to  a  shared  goal  of  working  towards  ending 
homelessness in Europe by 2030. Despite the efforts made to date, homelessness is on the rise 
with more than one million people, including 400,000 children, homeless in the EU, as well as 
about 80,000 sleeping rough27. We must take immediate action to change course.  

Low-income  groups  are  particularly  impacted  by  the  housing  crisis.  Groups  in  situation  of 
disadvantage  also  include  older  people  with  low  pensions,  single  parents  and  families  with 
children  at  risk  of  poverty,  LGBTIQ+  people,  victims  of  gender-based  violence,  Roma  and 
other  marginalised  minorities,  migrants,  and  other  groups  at  risk  of  exclusion  or 
discrimination – who face specific challenges in accessing housing. In addition, persons with 
disabilities  confront  limited  availability  of  accessible  housing,  which  increases  the  risk  of 
institutionalisation. 

Tenants  encounter  increasing  risks  of  housing  insecurity  due  to  rising  rents  and,  in  some 
Member States, insufficient legal or social assistance where needed.  

Poor  housing  quality  and  energy  performance  make  it  difficult  to  maintain  adequate  indoor 
temperatures  and  air  quality  and  contribute  to  energy  poverty.  Some  42  million  Europeans 
cannot afford to heat their homes properly28. 

Action 9. Housing for young people 

limiting 

Access  to  affordable  housing  is  increasingly  out  of 
their 
reach  for  many  young  people, 
independence and participation in society and in the 
economy.  Addressing  this  challenge  requires  a 
increased 
comprehensive  approach  combining 
investment  into  student  housing,  targeted  measures 
that  expand  affordable 
rental  and  ownership 
opportunities  specifically  for  younger  generations 
and  support  to  innovating  housing  models  such  as 
co-living spaces and intergenerational living. Several promising approaches ensuring quality 
and affordability have already emerged in some countries and these can serve as models to be 
scaled up and replicated across the EU.  

Out  of  its  allocated  EUR  2.7  billion  RRF 
budget  for  the  provision  of  social  and 
affordable  housing,  Portugal  launched  its 
Affordable  Student  Housing  (EUR  375 
million)  that  is  providing  18,239  beds, 
11,795  of  which  are  new,  which  will 
increase the existing offer. Refurbishing the 
current  network  of  student  accommodation 
will result in 6,444 beds. 

Goal 

How 

Improve  access  to  housing  for  young  people,  students,  apprentices  and 
trainees 
The Commission will: 

•  help  build more student housing by mobilising  investments  through 
the  InvestEU  programme,  the  Pan-European  Investment  Platform  and 
by  supporting  Member  States  and  regions  in  allocating  their  cohesion 
policy funding in this direction; 

•  help  students,  trainees  and  apprentices  find  housing  on  the  private 

27 OECD Affordable Housing Database, HC3.1 People experiencing homelessness. Harmonised data does not yet exist. 
28 Eurostat 

16 

 
 
 
 
• 

• 

rental  market  by  assessing  the  feasibility  of  a  guarantee  scheme29  to 
reduce or eliminate the need for a security deposit; 

identify  and  disseminate  innovative  accommodation  models  for 
students and young people; 

launch a pilot scheme under Erasmus+, partnering with cities across the 
EU  and  relevant  stakeholders,  to  increase  availability  of  affordable 
innovative  housing  solutions  for  mobile  students  from 
and 
disadvantaged  backgrounds.  In  addition,  the  Commission  will  work 
with Member States to encourage the use of European Social Fund+ to 
further support affordable housing solutions for disadvantaged students. 

Member States are encouraged to develop and implement targeted schemes to 
improve  access  to  housing  for  young  people,  including  affordable  rental 
options and support for shared or co-living arrangements.  

Action  10.  Addressing  homelessness  and  supporting  tenants  and  households  in 
vulnerable situations 

integrated  approaches 

Homelessness 
is  a  persistent  and  complex 
challenge  to  be  addressed  through  housing-led 
solutions (including ‘Housing First’ solutions) 30, 
to 
accompanied  by 
combat  poverty  and  exclusion.  The  EU  Anti-
Poverty  Strategy,  to  be  adopted  in  2026,  will 
take a person-centred, multidimensional approach to tackle the root causes of poverty. It will 
address  homelessness  as  one  of  the  most  severe  forms  of  social  exclusion,  reinforce 
prevention, and promote integrated tools to reduce inequality, poverty, exclusion and improve 
access to essential services, social protection and the labour market. 

In  Finland,  following  the  launch  of  Housing 
First  in  2008,  the  number  of  homeless  people 
decreased  by  30%,  and  the  number  of  long-
term  homeless  people  by  more  than  35%  until 
2024. The government is developing a new plan 
to eradicate homelessness by 2027. 

Increasing the availability of social housing is essential to achieve long-term pathways out of 
homelessness and prevent social exclusion and precarious housing situations. Access to social 
housing  and  assistance  to  the  homeless  are  underlined  as  one  of  the  20  principles  of  the 
European  Pillar  of  Social  Rights.  Reinforcing  housing  related  services  such  as  debt 
counselling and mitigation measures are instrumental for preventing evictions.  

Promoting  a  social  mix  and  intergenerational  solidarity  within  neighbourhoods  prevents 
segregation, fosters inclusion, and ensures that vulnerable tenants are part of thriving, diverse 
communities. As part of the just transition and efforts to eradicate energy poverty, there is also 
a  need  to  protect  the  most  disadvantaged  groups,  who  are  often  living  in  housing  with  the 
worst energy performance, from being disconnected from their energy supply.  

29 By EIB Group under InvestEU Advisory Hub  
30 Housing-led approaches prioritise providing stable, permanent housing as quickly as possible to people experiencing or at 
risk of homelessness, offering support services after they move in rather than requiring them first to meet certain conditions. 

17 

 
 
 
 
 
 
Goal 

How 

Promote  housing  solutions  that  protect  and  empower  people  in  vulnerable 
situations 
The Commission will: 

•  propose  a  Council  recommendation  on  fighting  housing  exclusion  to 
support vulnerable persons in precarious housing situations and to prevent 
and  address  homelessness.  It  will  aim  to  promote  the  design  and 
implementation  of  policies  based  on  a  person-centred,  housing-led  and 
integrated policies approach. The initiative will be presented in the context 
of the forthcoming Anti-Poverty Strategy and build upon the work of the 
European Platform on Combatting Homelessness; 

•  mobilise  new  investment  in  social  housing  and  housing-led  solutions 
for  homeless  people  by  establishing  a  dedicated  workstream  within  the 
Pan-European  Investment  Platform, 
including  potential  cooperation 
initiatives  with  philanthropic  organisations  and  private  actors  to  expand 
financial and in-kind support; 

• 

identify  models  and  share  good  practices  combining  the  protection  of 
property rights of owners with tenant security and support research and 
exchanges of good practices31; 

•  support households fighting energy poverty and protecting disadvantaged 
people  from  disconnection  from  the  energy  supply,  as  part  of  the 
upcoming Citizens Energy Package (2026). 

Member States and regions are encouraged to step up their support to homeless 
and  other  groups  in  vulnerable  situations,  including  through  their  national  and 
regional  partnership  plans  under  the  next  MFF.  Additional  support  could  be 
envisaged under the EU Facility supporting social and affordable housing. They 
are  also  encouraged  to  foster  access  to  accessible  housing  for  persons  with 
disabilities. 

Member  States,  regional  and  local  authorities  are  encouraged  to  increase 
transparency  of  rental  agreements  for  example  by  requiring  rental  services 
providers to publish average rent costs and/or the last rental price of a property.  

3.  A European Housing Alliance to strengthen cooperation across the EU 

‘A European  effort,  anchored in  local realities.’  President  von der Leyen, 2025 State of the 
Union address 

EU-level  cooperation  on  housing  policy  has  so  far  been  limited,  leaving  opportunities  to 
coordinate  actions,  share  best  practice,  and  progress  towards  common  objectives  largely 
untapped.  A  new  European  Housing  Alliance  will  unite  all  levels  of  government  –  from 
cities  and  regions  to  national  and  European  institutions,  together  with  key  housing 
stakeholders  –  to  drive  forward  a  shared  commitment  to  ensure  affordable,  sustainable  and 
quality housing for all. The Alliance will serve as a hub for cooperation, mutual learning, and 

31 For example, through the follow-up of the TEN-LAW project, a comprehensive EU-funded comparative study conducted 
in 28 European countries, examining national tenancy laws and broader rental protection frameworks, including the balance 
of rights and duties between tenants and landlords. 

18 

 
 
 
 
 
the exchange of best practice across Europe, shaping a new way of working on housing at EU 
level and connecting with the grassroots. It will foster synergies and cooperation in particular 
with  the  EU  Agenda  for  Cities32,  the  New  European  Bauhaus,  the  European  Platform  for 
Combatting  Homelessness  and 
the  High-Level  Construction  Forum.  The  European 
Commission  stands  ready  to  step  up  its  cooperation  with  the  Council  and  the  European 
Parliament on this topic.  

President von der Leyen announced in the 2025 State of the Union the first-ever EU Housing 
Summit.  This  will  be  organised  in  2026  by  the  Commission,  together  with  the  European 
Council, bringing together all key actors on housing at the highest level. 

Goal 

How 

Strengthen  cooperation  and  mutual  learning  between  all  levels  of  government 
and stakeholders  
The Commission will: 

•  organise the first EU Housing Summit (2026); 

•  set up a European Housing Alliance (Q3/2026) to: 

o  facilitate cooperation on housing with and across Member States and 
different  levels  of government,  including  with cities  and regions, key 
housing  stakeholders, 
the  European 
Committee  of  the  Regions  and  the  European  Economic  and  Social 
Economic Committee; 

the  European  Parliament, 

o  share knowledge and good practice between Member States, regions 
and  cities  through  a  new  multi-level  governance  mutual  learning 
programme on housing. 

Conclusions 

Putting affordable, sustainable and quality housing at the top of our agenda means addressing 
one of the most pressing everyday concerns of Europeans. High housing costs are at the heart 
of the cost-of-living crisis, shaping people’s choices, opportunities  and well-being. Ensuring 
that every European can afford a decent home is not only about fairness, but also essential for 
Europe’s  competitiveness,  enabling  people  to  access  jobs,  contribute  to  the  economy  and 
build stable futures.  

This  Plan  sets  out  a  vision  and  a  series  of  actions  to  increase  supply,  unlock  investment, 
deliver  immediate  support  while  advancing  lasting  reforms,  and  supporting  those  most 
affected. It marks the beginning of a collective effort that will need to be sustained. Progress 
will  require  collaboration  and  action  at  all  levels:  from  European  institutions  to  Member 
States,  cities  and  regions,  from  stakeholders  to  society  at  large.  The  Commission  looks 
forward to further input from the European Parliament through its forthcoming report and to 
cooperation with the Council in the run-up to the first-ever EU Housing Summit in 2026 – a 
key  moment  to  ensure  that  housing  remains  high  on  the  political  agenda  and  that  policy 
measures are effectively being implemented on the ground.  

Before the end of this mandate, the Commission will present a report on progress made under 
this Plan. 

32 Notably through the EU Cities Platform that will give cities simplified access to EU support such as funding instruments, 
knowledge resources and technical assistance, including from the EU Facility. 

19 

 
 
 
 
 
ANNEX: SUMMARY OF ACTIONS AND TIMELINE  

This table summarises the actions proposed  in this  document, including the policy orientations put forward as 
encouragements for consideration by Member States. 

What  

Pillar I. Boosting supply 

Who 

When 

Action 1. Strengthening productivity, capacity and innovation of the construction industry  
EC 
European Strategy for Housing Construction 
EC 
Construction Services Act 
EC, MS, 
Large-scale training programmes, promoting innovation in construction curricula 
industry 
EC, MS 

Q4 2025 
Q4 2026 

Monitor and where necessary take action against any potential anti-competitive practices in 
the construction sector  
Support investments in low-carbon and bio-based European manufacturing, integration of 
sustainability criteria in public procurement and support schemes, uptake of modern methods 
of construction and renovation, and large-scale apprenticeship, up- and reskilling efforts. 
Action 2. Cutting red tape to accelerate housing supply  
Housing simplification package 
Simplify national, regional and local planning, zoning and permitting rules and building 
codes, increase administrative capacity including for digitalisation and make use of the 
flexibilities offered by the Public Procurement Directives 
Action 3. Combining affordability, sustainability and quality in housing  
New Partnership for Better Homes, guidance on one-stop shop services for renovation, 
support to comprehensive National Building Renovation Plans  
Energy Communities Action Plan 
Regeneration of neighbourhoods through the New European Bauhaus 

Prioritise the renovation/repurposing of existing buildings, avoid unnecessary demolitions 

Action 4. Mobilising additional public and private investment 
Pan-European Investment Platform for affordable and sustainable housing 

Pillar II. Mobilising investment 

Support new investments in housing under current MFF 
Opportunities to scale up housing investments under the next MFF 

Help develop scalable and innovative financing models  
Voluntary, market-led investment framework for social and affordable housing 

Guidance to Member States on designing financial and legal solutions to support social and 
affordable housing taking into account public debt considerations 
Step up ambition to support social and affordable housing investments 
Action 5. Enabling faster and simpler public support for social and affordable housing  
Revised State aid rules  

Pillar III. Enabling immediate support while driving reforms   

Action 6. Addressing short-term rentals in areas under housing stress  
New legislative initiative on STR as part of an Affordable Housing Act 

20 

MS 

EC, MS 
MS 

2027 

EC, MS 

2026 

EC 
EC, MS 

2026 
2026 
onwards 

MS, reg. and 
local authorities 

Q3 2026 

2026-2027 
2028 
onwards 
2026-2027 

EC, EIB, NPBIs, 
IFIs 
EC, MS 
EC, MS, regions 

EC, MS 
EC, market 
players, public 
authorities 
EC, MS 

MS, regions 

EC 

Q4 2025 

EC 

Q4 2026 

 
 
 
 
 
 
 
 
 
 
Monitor data on STRs, assess their impact on housing affordability 
Action 7. Addressing speculation in the housing market  
Analysis of housing price dynamics including available evidence on speculation patterns, data 
gaps and economic consequences 
Promote greater transparency in the residential property market 
Facilitate investments in non-profit/limited-profit housing providers 
Peer learning and innovation in tackling housing speculation 

Put in place measures to limit harmful speculative behaviours reflecting local needs 

Action 8. Driving forward Member States’ structural reforms 
Stronger monitoring and targeted recommendations under the European Semester 
Fostering European statistics related to housing and establish an EU-level access point for 
housing market data and analysis 
Identifying where EU policy and funding can have the biggest impact to improve the 
functioning of housing markets 
Supporting Member States in designing taxation policies that promote housing affordability 
Providing technical and financial support to Member States, regions and cities to carry out 
reforms  
Implementing ambitious and comprehensive reforms focused on affordability 

Pillar IV. Protecting the most affected 

MS 

EC 

Q4 2026 

EC, MS 
EC, MS 
EC, MS, reg. & 
local authorities 
MS, reg. & local 
authorities 

From 2026 

From 2026 

EC 
EC, MS 

EC, MS 

EC, MS 
EC 

MS 

EC, MS 
EC, EIB Group 

Action 9. Housing for young people 
Mobilising investments for student housing 
Assessing the feasibility of a guarantee scheme to reduce/eliminate the need for a security 
deposit 
Identify and disseminate innovative accommodation models for students and young people 
Pilot scheme under Erasmus+ for mobile students from disadvantaged backgrounds 
Develop and implement targeted schemes to improve access to housing for young people 
Action 10. Addressing homelessness and supporting tenants and households in vulnerable situations  
Council recommendation on fighting housing exclusion 
Mobilise new investment in social housing and housing-led solutions for homeless people 
through the Pan-European Investment Platform 
Identify models and share good practices combining the protection of property rights of 
owners with tenant security 
Fighting energy poverty and protecting vulnerable people from disconnection through the 
Citizens Energy Package 
Step up support to homeless and other groups in vulnerable situations, including through 
national and regional partnership plans under the next MFF 
Increase transparency of rental agreements 

EC, MS 
EC, EIB, NPBIs, 
IFIs 
EC 

EC, MS 
EC, cities 
MS 

EC, regions 

EC 

2026 
Q3 2026 

2026 

MS, reg. & local 
authorities 

A European Housing Alliance to strengthen cooperation across the EU 

EU Housing Summit 
European Housing Alliance  
Multi-level governance mutual learning programme on housing 

EC, Council, MS 
EC 
EC, MS, regions, 
local authorities 

2026 
2026 
Q3 2026 

21