Housing Advisory Board recommendations to the European Commission

The "Housing Advisory Board recommendations to the European Commission" was published by the European Housing Advisory Board, which was established in June 2025 to assist the European Commission in formulating an Affordable Housing Plan. The board comprises fifteen experts from diverse backgrounds in housing research, education, finance, and public provision. Key authors include Mr. Eamon Ryan, the former Irish Minister for the Environment, and Mr. Carlos Moedas, the Mayor of Lisbon.

The report identifies pressing issues in the European housing landscape, noting that house prices increased by 55.4% and rents by 26.7% between 2010 and 2024. This surge has outpaced wage growth, forcing low-income households to allocate nearly 40% of their income to housing costs. The report emphasizes that various criteria must define housing affordability, including security of tenure, access to public services, and the overall quality of life in neighborhoods.

The Advisory Board proposes a paradigm shift to view housing as essential social infrastructure. It calls for a "housing first" policy to end homelessness and recommends scaling up the Housing First approach, which has demonstrated effectiveness in retaining housing for vulnerable populations. Social housing should be a cornerstone of affordable housing strategies, and the report advocates for stronger social rental agencies to stabilize the rental market.

The report stresses the importance of utilizing existing buildings efficiently and encourages urban regeneration over new construction to prevent urban sprawl. It points out that sustainable densification should be achieved by activating under-used spaces and renovating existing structures. The need for significant investment in new social and private housing developments is also highlighted.

Integrating the green transition into housing policy is crucial. The Board recommends retrofitting buildings for energy efficiency, promoting sustainable transport solutions, and enhancing residential areas' ecological value. It emphasizes that improvements in building quality can lead to lower living costs and better health outcomes, while also contributing to climate goals.

The report acknowledges the urban-rural divide in housing affordability, with urban areas facing skyrocketing prices and some rural regions experiencing depopulation and low house values. Addressing this imbalance requires enhancing the attractiveness of rural living through improved infrastructure and promoting affordable housing projects in these areas.

To fund the Affordable Housing Plan, the report suggests creating a European Affordable Housing Investment Fund and a European Affordable Housing Savings Account. It emphasizes the need for clear investment principles and regulatory frameworks that support long-term affordability while discouraging financialization in the housing market.

Reliable data collection and effective coordination among European, national, and local efforts are also vital. The report proposes creating an Affordable Housing Coordination Hub to facilitate these efforts and ensure alignment across various levels of government. This hub should help local authorities access funding directly and engage in meaningful partnerships to address housing challenges.

In conclusion, the recommendations provided by the Housing Advisory Board aim to create a comprehensive strategy for tackling the housing crisis in Europe, emphasizing the need for a multi-faceted approach that includes urban planning, financial innovation, and a commitment to sustainability.