Overview of the Report
The Housing Advisory Board, a volunteer body of fifteen experts in housing research, finance, education and public provision, was established by the European Commission in June 2025 with a one‑year mandate to inform the upcoming European Affordable Housing Plan. The report presents 75 recommendations aimed at tackling the EU housing crisis, emphasizing the need to view housing as essential social and economic infrastructure and to shift away from its financialisation.
Policy Context and Mandate
The Board’s work complements the European Parliament’s special Committee on the Housing Crisis and the European Council’s efforts. It draws on a public consultation that received roughly 13 000 submissions, highlighting widespread concern about affordability, homelessness and the uneven distribution of housing between urban and rural areas.
Key Housing Data
- Between 2010 and 2024 house prices rose by 55.4 % and rents by 26.7 % across the EU, with some Member States seeing price increases over 200 %.
- Low‑income households now spend close to 40 % of their income on housing costs.
- The EU’s current housing supply is projected to meet only 50 % of the annual demand for new units in 2025.
- About 75 % of Europeans aged 18‑34 still live with parents, reflecting affordability pressures on younger generations.
Paradigm Shift and Affordability Definition
The Board calls for a paradigm shift that treats housing as a core public good, similar to transport or water infrastructure. Affordability should be measured not only by purchase or rent price but by lifetime running costs, energy efficiency, quality of the neighbourhood and access to services. The “cost‑rental” model—where rents cover actual provision costs— is promoted as a way to curb speculative profit and ensure long‑term affordability.
Homelessness and Housing‑First Approach
A central recommendation is to end homelessness by scaling up the Housing‑First model, providing immediate, permanent homes combined with flexible support. The report urges the EU to earmark at least 3 % of the ESF+ budget for homelessness services and to create a dedicated fund, possibly financed by a solidarity contribution from short‑term‑rental platforms.
Sustainable Construction and Modern Methods
Modern Methods of Construction (MMC), including modular and off‑site production, are highlighted as tools to reduce costs, speed delivery and lower carbon emissions. The Board recommends EU‑wide standards, training programmes and regulatory frameworks to accelerate MMC adoption, as well as incentives for “mass customisation” to balance efficiency with diverse user needs.
Green Transition and Energy Efficiency
Retrofitting existing buildings is presented as a cost‑effective climate measure. The report notes that without energy‑efficiency improvements, EU households would have faced a 29 % higher final energy consumption in 2023, translating into an average extra electricity bill of €540 per household. District heating, renewable heating, and energy‑storage solutions are recommended to complement building upgrades.
Financing Mechanisms
Multiple financing tools are proposed:
- A Transitional Emergency Facility within InvestEU (2026‑2028) to deliver grants and blended loans for land servicing, brownfield remediation, and affordable‑housing projects.
- Expansion of cost‑rental financing, with capped returns and revolving capital reserves.
- Issuance of affordable‑housing bonds, EU‑level standards, and potential ECB collateral‑rating adjustments for such securities.
- Creation of an EU Affordable Housing Savings Account and a European Affordable Housing Investment Fund to mobilise household savings and institutional capital.
Data, Monitoring and Coordination
The Board stresses the need for reliable, comparable data on homelessness, housing starts and affordability. It proposes a Multi‑Level Housing Platform and a Housing Coordination Hub to align EU, national and local actions, facilitate joint implementation plans and monitor progress through standardized KPIs.
Planning Reforms and Land Governance
Improving planning systems is seen as essential. Recommendations include:
- Adoption of inclusionary zoning and land‑value capture tools.
- Strengthening public land banks and land‑readjustment mechanisms.
- Streamlining permitting while preserving environmental and social standards.
- Encouraging compact and polycentric urbanisation to reduce sprawl and improve access to services.
Social Inclusion and Targeted Support
Special attention is called for vulnerable groups—young people, migrants, people with disabilities, LGBTQI+ persons, and low‑income families. The report suggests demand‑side subsidies (e.g., rent vouchers) combined with supply‑side controls, anti‑discrimination directives, and tailored housing models for seniors and students.
Skills and Supply‑Chain Needs
The Board identifies a need for up‑skilled workers across the construction value chain, from MMC designers to retrofit specialists. It recommends integrating MMC curricula into vocational schools, universities and continuous‑training programmes for architects, engineers and labourers. Overall, the Housing Advisory Board’s recommendations provide a comprehensive, data‑driven roadmap for delivering sustainable, affordable housing across Europe while meeting climate objectives and strengthening social cohesion.