Making your home affordable, sustainable and of better quality
Since 2013, house prices in the EU have risen by over 60%, while average rents have risen around 20%, with rents in urban areas climbing even higher.
The lack of affordable housing and rising costs is becoming a major social concern for citizens in most EU countries.
Just 6-7% of EU housing stock is social housing, while 20% of homes remain unoccupied, and short-term rentals have surged 93% between 2018 and 2024.
The Commission has developed a plan to increase supply of affordable, sustainable and quality housing, with coordinated action across EU countries.
What does the plan propose?
boost housing supply through new builds and renovation
support innovation in the construction sector
attract and reskill workers
address short-term rentals in areas under housing stress
reduce costs and administrative burdens
support energy efficiency and lower bills
mobilise public and private investment
protect the most affected, including young people and disadvantaged groups
Increasing housing supply and driving innovation
The Commission estimates that Europe will need to build more than two million homes each year to meet current demand—around 650,000 more homes annually on top of the 1.6 million built today. Delivering these additional homes would require investment of approximately €153 billion per year.
To address this, the Commission has developed the new European strategy for housing construction, to strengthen the sector’s competitiveness, productivity and innovation. The strategy aims at
- simplifying and digitalising permitting procedures
- rolling out the digital product passport (from 2028) and the digital building logbooks
- accelerating the development of harmonised standards for innovative construction products, materials and methods
In addition, under the New European Bauhaus, the Commission will boost research, develop and scale up innovative building solutions.
Supporting areas affected by housing shortages
Accommodation in cities and tourist areas are often costly, making it harder for locals to find good places to live. As part of the Affordable Housing Act, to be adopted in 2026, the Commission will support national, regional and local authorities, to address the issues, notably linked to short-term rentals. It will also address concerns on speculative practices and help EU countries drive forward structural reforms.
Supporting those most affected by the crisis
Lack of affordable housing particularly affects low income and disadvantaged groups of our society. The Commission intends to support young people, students and trainees, for example by piloting a guarantee scheme to reduce or eliminate the need for a security deposit, and essential workers who cannot live in the communities they serve. It also intends to support further action to address the persistent and complex issues of homelessness.
Faster permitting and renovation processes
The plan aims to reduce costs by cutting administrative burdens linked to EU housing rules. It will also promote best practices, such as digital planning and permitting, across all levels of government.
Investment support and simpler state aid rules
The plan will boost investment in social and affordable housing, including through a new pan-European housing investment platform. It will also simplify state aid rules, making it easier for EU countries to support affordable housing.
Key figures
Supporting energy efficiency
In March 2026, the Commission presented the citizens’ energy package. Its goal is to lower energy bills and help vulnerable consumers by empowering people to produce their own clean energy and combat energy poverty. This is how it will help
- switching to cheaper energy supplier. Consumers could save up to €150 per year.
- lowering taxes and levies on their electricity bills. This could save households €200 per year.
- providing more transparent information on energy bills and contracts. This helps consumers make informed decisions.
The Commission also adopted an energy efficiency financing support package to bridge the gap between the available private capital and investments needs to change our energy system and infrastructure. The Commission will deliver this strategy with the European Investment Bank Group, which plans to provide more than €75 billion of financing over the next three years.
Next steps
The plan includes the first-ever EU summit of heads of state or government on housing, to be held in 2026. The summit will launch a new European Housing Alliance, bringing together cities, regions, national and EU institutions, as well as key housing stakeholders.
The Commission also plans to introduce the EU anti-poverty strategy, tackling homelessness and the root causes of poverty.
This page was last updated on 11 March 2026