Debate: EU strategy to assist young people facing the housing and cost of living crisis
Date: WEDNESDAY, 13 DECEMBER 2023
Speaker: Nicolas Schmit
Language: EN

Recently, inflation and the increase in interest rates have had a sizeable impact on rents and mortgages. Yes, the share of the population at risk of poverty or social exclusion, though remaining broadly constant over the past years, is, nevertheless, at a very high level, with more than 90 million Europeans at risk of poverty. Given the repeated shocks and crises, effective policies and exceptional social transfers have permitted to avoid a major worsening. However, the risks of housing exclusion and poverty have increased for vulnerable and low-income households, especially when coupled with energy poverty risks. And the difficulties to afford decent housing are also an issue for medium-income households in numerous locations. Some groups are more at risk than others, and this concerns young people in particular. Young people are more likely to live in overcrowded households, to spend 40% or more of their income on housing. For young people, having a house is often the first step towards independence. However, the lack of affordable housing remains a crucial barrier in this respect. In May this year, Eurofound reported that three quarters of Member States have a housing-first approach built into their national systems, but have not yet reached sufficient scale. The same report recalls that affordable housing policies must not increase inequalities. Ownership support often benefits people with higher income more than those with lower incomes, who, by the way, have no own assets. We are well aware that young people with low incomes may be particularly vulnerable in that respect. Access to affordable and decent housing is also an essential condition for young people to be independent and found a family. We should not forget, in that context also, about the most extreme form of housing deprivation: homelessness. The Federation of National Organisations working with the homeless estimate that 895 000 people, about one in every 600 people in Europe, are living rough in shelters or temporary accommodation. These numbers are staggering, and studies indicate that this phenomenon is still increasing in the majority of Member States. As the European Commission, we have a role to play. The Commission has been promoting better housing policies in Member States, including in the context of the European Semester. Unfortunately, there are no quick fixes to housing shortages or high rent and house prices. Typically, a mix of policies is necessary, and they take time to have a sustained impact on the ground. Increasing the supply of affordable housing and, in particular, public housing and social housing, is key. That is why we monitor housing policies in the European Semester and look at both the supply and accessibility dimensions, with a focus not only on the most vulnerable, but also the middle-income households. As a result, several Member States have already received country-specific recommendations. Beyond the Semester, the EU has in place several policy and funding instruments: the new European Bauhaus, the Renovation Wave and the Affordable Housing Initiative, which has the objective to promote inclusive, innovative and affordable housing. The European Platform on Combating Homelessness brings together national authorities, civil society and European institutions to combat homelessness in the EU with, precisely, a housing-first approach. Many young people, notably belonging to minorities, or migrants, are affected by homelessness, facing a terrible, vicious circle: no job, no housing and no housing, no job. Since its launch, we have seen an increasing number of Member States adopting integrated national homelessness strategies. To help young people access affordable and decent housing we need to boost investments in affordable housing, including social and student housing. Funding is also available at EU level, and you have insisted on the situation of many students that have particularly suffered first from COVID-19 and now from inflation. They need better support and this includes paid traineeships. Member States have programmed close to EUR 15.1 billion in their national recovery and resilience plans in connected investments and reforms, including following country-specific recommendations. The InvestEU programme, with its EUR 2.8 billion guarantee dedicated to social investments and skills, also has the potential to leverage substantial investments on affordable social and student housing and other funds, such as the European Regional Development Fund and the European Social Fund Plus, contribute to building an integrated approach to housing for vulnerable groups. Housing policies also need to be understood in a broader context, in particular when it comes to helping young people access quality jobs that offer good working conditions and decent salary prospects. Precarious jobs are among the main causes for excluding young people from the housing market, as they do not have the stable income asked for by landlords. Our Green Deal Industrial Plan and the investments and reforms under the Recovery and Resilience Facility are aimed at creating good job opportunities. The reinforced Youth Guarantee, which has already been mentioned, supports young people in gaining work experience and developing the right skills. Many young people are also willing to start their own business. The Commission launched, together with the OECD, the Youth Entrepreneurship Policy Academy, to support them. These are just a few examples of the ambitious actions that we are taking to support Member States. Looking ahead, we have to focus on the implementation of the European Pillar of Social Rights that in Principle 19 foresees ‘access to social housing or housing assistance of good quality [that] shall be provided for those in need’. Now is the moment to do so.