Accelerating decarbonisation of current and future affordable housing in Europe

The resource "Accelerating Decarbonisation of Current and Future Affordable Housing in Europe" is published by the Urban Land Institute (ULI) and authored by a team of experts including Sara Candiracci, Sara Dethier, Gabriella Bachiller, Alice Charles, and others. This report outlines a comprehensive initiative aimed at addressing the dual crises of housing affordability and the urgent need for decarbonisation in Europe.

Europe is grappling with two interconnected crises: the urgent need to decarbonise and the growing issue of housing affordability. Approximately 15 million people across Europe face unaffordable housing, with one million experiencing homelessness. Between 2015 and 2024, EU house prices surged by around 50%, while average rents have doubled in many major cities. Furthermore, buildings account for about 36% of energy-related greenhouse gas emissions in the EU, making sustainable housing a critical focal point for climate action.

Launched by ULI in 2025, the C Change for Housing initiative aims to mobilise the real estate industry to dismantle barriers preventing the decarbonisation of affordable housing. By convening stakeholders from private, public, and third sectors, the program seeks to co-create scalable solutions that facilitate the transition to a low-carbon housing system across Europe.

The report identifies key systemic barriers that hinder progress, including inadequate land access, high costs of retrofitting, and fragmented governance structures. It notes that over 75% of Europe’s buildings are energy-inefficient, and without significant retrofitting, existing homes will continue to emit carbon for decades. Moreover, approximately 30 million dwellings are currently vacant or under-occupied, illustrating a significant mismatch between housing supply and demand.

To effectively tackle these challenges, the report outlines several high-leverage intervention areas. These include optimising strategic land assembly, mainstreaming integrated planning, establishing universal definitions and measurements for affordability and decarbonisation, and enhancing public-private-civic collaboration. The initiative emphasizes the importance of a coordinated approach that aligns housing, infrastructure, and social goals to achieve long-term sustainability.

The report underscores that achieving a just transition in Europe’s housing system requires more than technical innovations; it necessitates structural changes across the entire value chain. Coordinated action among stakeholders is essential to align incentives, scale up renovation, and ensure that the shift to low-carbon housing also delivers affordability and equity.

As the C Change for Housing initiative moves forward, it will focus on deeper engagements in selected intervention areas to develop practical and scalable solutions. The accompanying interactive dashboard allows users to explore systemic barriers and high-impact interventions, providing a living resource for stakeholders working across the affordable housing ecosystem. This comprehensive report serves as a vital resource for understanding the complex landscape of decarbonisation and affordable housing in Europe, aiming to guide future efforts toward creating sustainable, livable communities.