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The affordable housing act

Millions of Europeans are struggling to find a home they can afford. They face expensive rents and rising house prices, and may wait years for a home that meets their needs. Sometimes, they have to make difficult choices about where and how they live. 

These challenges affect everyone: young people, families, workers moving for a job, older people, and those at risk of being left behind.

Everyone should have the chance to live in a place they call home. That is why the European Commission has put forward the affordable housing act that will help EU countries and cities keep housing affordable and available, especially in areas where people face the greatest pressure.

In addition, national and local authorities have repeatedly called for EU action and greater legal certainty. 

A common European approach to housing

  • over 50%
    of city residents consider housing as an immediate and urgent problem where they live

Housing pressure is not the same everywhere. Some cities and regions are more affected than others. Therefore, solutions need to take local circumstances into account. Even though EU countries have already introduced measures to ease such pressures, they have also asked for clearer rules on what they can do under EU law.

Housing decisions remain national, regional and local competence

The affordable housing act gives public authorities greater legal certainty to protect housing affordability and availability in areas facing the greatest pressure. It leaves the decision on whether to act, and which measures to adopt, to the relevant authorities. If they decide to act, they must in any case

  • show that homes used as short-term rentals, second homes or left empty are contributing to local housing pressures
  • ensure that any measures are targeted, necessary and proportionate

Responding to pressures from short-term rentals and second homes

In some areas, especially in popular touristic destinations, affordability and availability could come under pressure as homes are increasingly being used for short-term rentals. This means fewer apartments are available to local people, driving up prices and making it harder for residents to find an affordable home.

Before introducing restrictions, authorities must demonstrate that

  • short-term rental activity has had a significant adverse effect on housing affordability or availability for at least three years
  • less restrictive measures would not be equally effective

Competent authorities must apply and enforce existing EU rules on short term rentals. This includes

  • requiring rentals to be registered and removing or disabling listings that do not meet these requirements
  • where available, using the data collected under the Regulation to support their assessment

Second homes or prolonged vacancy can also aggravate housing pressures. The affordable housing act provides a clearer framework for measures addressing these issues by protecting legal certainty and legitimate expectations. It requires that

  • conditions linked to acquisition cannot apply retroactively
  • appropriate transitional arrangements are provided
  • measures addressing long-term vacancy take into account justified periods of non-occupation

Boosting housing supply

  • The proposal includes a recommendation to help authorities create plans to boost housing supply in areas that need it most by enhancing planning, permitting, renovation, repurposing buildings, and investment.

  •  Authorities are urged to focus these efforts on Housing Acceleration Plans.

  • Investors and property owners in various local markets will gain more clarity on the EU legal framework.

Related links

This page was last updated on 10 September 2026