Draft Report on the housing crisis in the European Union with the aim of proposing solutions for decent, sustainable and affordable housing

The draft report on the housing crisis in the European Union was created by the Special Committee on the Housing Crisis in the European Parliament, with Borja Giménez Larraz acting as the rapporteur. The report addresses the urgent need for decent, sustainable, and affordable housing across the EU, highlighting the worsening housing crisis affecting various demographics, particularly low- and middle-income families, and young people.

House prices within the EU have surged by an average of 48% over the past eight years, while rents have increased by 18%, often consuming up to 40% of a household's monthly income. This situation has made it increasingly difficult for young people to leave their parental homes, with the average age of doing so recorded at 26.3 years in 2023. The report emphasizes that the lack of affordable housing is a pressing challenge that undermines family stability and the well-being of communities.

The report reveals that in 2024, residential construction experienced a decline of 5.7%, following a prior drop of 2.6% in 2023. In 2024, building permits fell by 14.6% for floor area and by 19.6% for the number of dwellings. A significant challenge highlighted in the report is the insufficient supply of housing stock, attributed to decades of underinvestment and limited construction, exacerbated by rising construction costs and regulatory burdens.

The report calls for a comprehensive and tailored approach to housing policies, opposing a “one-size-fits-all” strategy. It emphasizes that housing challenges vary widely across member states, regions, and cities. Local authorities play a crucial role in identifying specific housing needs and developing targeted measures. The report advocates for simplifying regulatory frameworks to boost housing supply and reduce bottlenecks in construction processes.

To tackle the housing crisis, the report suggests urgent measures to increase housing supply by reducing regulatory burdens and expediting permitting processes. It calls for the mobilization of publicly owned land and the easing of zoning processes to facilitate the construction of social and affordable housing. The report also emphasizes the importance of ensuring legal certainty for property ownership as a fundamental value within the EU.

The report highlights the necessity of mobilizing private investment to address the liquidity shortage in the housing market. It suggests that EU institutions and member states should create conditions that attract private capital for housing construction, particularly for low- and middle-income households. The report underscores the role of public funding in supporting the development of affordable housing while advocating for efficient allocation mechanisms for EU funds.

In addressing the housing crisis, particular attention is given to young people, low- and middle-income families, and essential workers. The report encourages the promotion of tailored housing-related policies to support these groups, including tax incentives and access to affordable credit. It also stresses the need for targeted housing solutions for vulnerable households and the importance of preventing homelessness.

Finally, the report calls for improved data collection and analysis on housing situations and needs across the EU. It advocates for a digital platform for real-time housing data and an annual European housing report to provide a systematic overview of housing developments. This data-driven approach is deemed essential for informed policymaking in addressing the housing crisis effectively.