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The European affordable housing plan

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 nearly 70% between 2019 and 2024.

The Commission has developed a plan to increase supply of affordable, sustainable and quality housing, with coordinated action across EU countries.

6-7%
of housing stock in the EU is social housing
20%
of houses in the EU remained unoccupied
Nearly 70%
growth in short-term rentals between 2019 and 2024

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

More than €43 billion
mobilised by the EU in housing under the 2021-2027 budget period
€10 billion
to be additionally mobilised from the EU budget in 2026 and 2027
€375 billion
mobilised by partner financial institutions by 2029

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.

In 2026, the Commission will also present an energy efficiency financing support package and a citizens’ energy package aimed at further lowering energy bills, with a focus on addressing energy poverty. Additionally, the Commission will introduce the EU anti-poverty strategy, tackling homelessness and the root causes of poverty.

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