EU finally takes ownership of housing crisis

EU finally takes ownership of housing crisis

The article discusses the European Union's evolving stance on the housing crisis, highlighting the shift from viewing housing as a national issue to recognizing it as a pressing concern that requires a unified EU response. Published by POLITICO, authored by Aitor Hernández-Morales, the piece outlines the growing urgency among European leaders to address housing affordability in light of rising pressures from the far right.

Historically, the EU has maintained that housing policy is not within its jurisdiction, as it is not explicitly mentioned in any EU treaties. While the EU has previously enacted legislation related to buildings' energy performance and construction material quality, regulation of the housing market was left to local and national authorities. However, this position is changing as national leaders acknowledge the need for a coordinated response to the housing crisis.

During the upcoming European Council summit, leaders will finally debate housing at the highest level, signaling a significant institutional shift. European Council President António Costa emphasized the importance of a collective approach to address housing issues. This meeting will be the first of its kind, affirming the EU's intention to tackle housing affordability.

The article notes that housing prices in Europe have been on an upward trend for over a decade, with EU institutions previously limiting their response to symbolic measures like the 2017 European Pillar of Social Rights. This declaration asserts that all Europeans have the right to decent housing; however, it lacks enforceable guarantees for access to shelter.

The shift in focus towards housing began in anticipation of the 2024 European Parliament elections, with center-left groups advocating for more action. As a result, Commission President Ursula von der Leyen appointed Denmark’s Dan Jørgensen as the first dedicated housing commissioner. Jørgensen plans to introduce the EU’s Affordable Housing Plan in December, alongside initiatives addressing short-term rentals in 2026.

Despite these advancements, national leaders remain divided on the best methods to tackle the crisis, including how to regulate speculation and short-term rentals. The draft conclusions of the upcoming summit describe the housing crisis as "pressing" but only call for the Commission to present its existing Affordable Housing Plan.

The text emphasizes the need for the EU's response to consider subsidiarity, a principle stating that the EU should only intervene when it can achieve better results than local authorities. Sorcha Edwards from Housing Europe expressed concern that this could preemptively excuse the Council from taking significant action, potentially leading to conflicts with the Commission over the scope of the Affordable Housing Plan.

The summit will attract attention from local politicians, including Barcelona’s Mayor Jaume Collboni, who, along with 18 other leaders from major EU cities, has called for a more robust EU response to the housing crisis. Collboni described the summit as a crucial milestone for an ambitious EU strategy to tackle what he calls the main source of social inequality in Europe.

As the EU prepares for this significant summit, the focus will be on establishing a clear mandate for the European Commission to move forward with an Affordable Housing Plan. This plan is expected to address critical elements such as agile funding, regulatory tools, and the decision-making capacity of cities to effectively combat housing challenges.