Cities addressing the housing crisis: Innovative and integrated approaches

This Eurocities publication (study/report) analyses how European cities are responding to an escalating housing affordability crisis, drawing on desk research, a structured survey of 20 cities (including some outside the EU), and four detailed case studies: Barcelona, Manchester, Rennes Metropole and Stockholm. It frames housing as central to social cohesion and urban competitiveness, and positions cities as key implementers of national and EU initiatives.

The report highlights the housing cost overburden rate as a key metric: across European cities, around one in ten urban residents spend more than 40% of their disposable income on housing, and among young adults aged 18–29 this rises to nearly one quarter. Using Eurostat 2023 data, it notes 10.6% of households in EU cities are overburdened (vs 7% in rural areas). It also documents price and rent escalation: EU house purchase prices increased by 48.1% on average between 2015 and 2023, while average rents rose by 18% between 2010 and 2022, with much steeper growth in some countries.

Across the surveyed cities, low-income households are consistently identified as most exposed to unaffordability, often alongside single-parent families and migrants/refugees. Young people and students are also frequently highlighted in tight rental markets. The report links these outcomes to structural vulnerabilities (income instability, discrimination, limited market access) and to shortages of suitable housing types (e.g., family-sized or age-adapted homes).

Key drivers include limited social and affordable housing supply, financialisation and speculative investment, population growth, and the conversion of homes into short-term rentals (noted as a major factor in tourist destinations). The report contrasts tenure structures: cities with larger social/regulated sectors such as Vienna (42%), Utrecht (29%), Manchester (27%) and Rennes Metropole (27%) are presented as more resilient, while cities like Barcelona (2%), Braga (5%) and Florence (5%) are described as highly exposed to market volatility. It also notes that in parts of Southern and Eastern Europe, high owner-occupation can coexist with affordability stress when social housing provision is limited.

The report compiles measures to expand and protect affordability: new construction; renovation and adaptive reuse; modular/industrialised building; acquisition of existing stock; and support for cooperatives and non-profit providers. Planning tools include binding affordability targets and quotas (examples include 30% in Barcelona and Berlin, 25–40% in Rennes Metropole, and high affordability shares in Utrecht and Vienna zoning). Financial mechanisms discussed include subsidies, interest-free or low-interest loans, preferential land pricing/leases, and public-private partnerships, alongside tools such as vacancy taxes and regulation of short-term rentals. It also emphasises integrated urban regeneration that combines housing delivery with mobility, green infrastructure and services, and links affordability to energy-efficiency renovation and climate targets. 🇪🇺 EU policy context and opportunities for scaling At EU level, the report points to increasing political momentum: the first European Commissioner for Housing, the announced European Affordable Housing Plan, and evolving funding and regulatory frameworks (including Cohesion Policy reviews, state aid discussions, and short-term rental data rules taking effect from May 2026). It argues that simplifying access to EU instruments, prioritising housing in future EU budgets, and aligning housing with energy and anti-poverty agendas can help cities scale affordable, sustainable and inclusive housing solutions.