Overview of the Working Paper
The study âHousing in the EU: The EU as a Commodifying Forceâ is a Working Paper (No. 249/2025) authored by Jonathan Sidenros of the Berlin School of Economics and Law and published by the Institute for International Political Economy Berlin (IPE Berlin). The paper, edited by a team including Sigrid Betzelt, Eckhard Hein, Martina Metzger, Martina Sproll, Christina Teipen, Markus Wissen, Jennifer PĂ©dussel Wu (lead editor) and Reingard Zimmer, investigates how EU policies influence the ongoing housing crisis across member states, integrating Aalbersâ theory of housing financialisation with Scharpfâs concepts of positive and negative integration.
Key Findings on EUâDriven Financialisation
The analysis identifies four main channels through which the EU contributes to housing commodification: (1) mortgage debt expansion, (2) mortgage securitisation, (3) financialisation of rental housing, and (4) financialisation of socialâhousing companies. EU initiatives such as the Capital Markets Union, the removal of interestârate caps, and liberalised credit controls have increased mortgage availability, driving up house prices and rental rates. Competitionâlaw rulings and the Services of General Economic Interest (SGEI) framework have facilitated the privatisation of social housing and the entry of large institutional investors, exemplified by the rise of transnational landlords like Blackstone.
Institutional Context and Legal Frameworks
EU competition law and stateâaid rules, particularly the SGEI classification, shape the market environment for housing. Cases from Sweden and the Netherlands illustrate how EU rulings have prompted national reforms that shift social housing toward marketâoriented models. The Stability and Growth Pact (SGP) imposes fiscal constraints that indirectly limit public investment in affordable housing, while the European Central Bankâs quantitative easing has expanded monetary liquidity, further inflating housing assets.
Policy Instruments and Recent Initiatives
The EUâs Urban Agenda (UAEU) and the Housing Partnership Action Plan (2018) propose guidance on regulation, capacityâbuilding workshops, data improvement, and genderâfocused housing policies. Although these actions remain largely softâpower measures, they signal a tentative shift toward integrating social objectives with market policies. Funding mechanisms such as the Renovation Wave, Cohesion Policy funds, the Modernisation Fund, and the InvestEU programme now provide financing for housing renovation and, in some cases, new construction, yet the impact on affordability remains under scrutiny.
Quantitative Evidence of Housing Trends
Empirical data cited in the paper show that between 2010 and 2022 average rents in the EU rose by 19 % and house prices by 47 %, outpacing wage growth. Homelessness increased by 70 % over the past decade, affecting over 700 000 people. Mortgage debt and homeâownership rates have diverged, with mortgage borrowing growing even where ownership fell, highlighting the decoupling of credit from actual housing demand.
Implications for Sustainable Housing
The research stresses that the EUâs negative integrationâremoving barriers to capital mobility and market competitionâhas amplified housing commodification, undermining social inclusion and sustainability goals. While EU commitments in the Charter of Fundamental Rights and the Sustainable Development Goal 11 recognise housing as a universal right, the prevailing policy trajectory favours marketâdriven development. The paper argues that a deâcommodifying approach would require stronger positive integration, leveraging EU legal space to protect social housing, enforce rent controls, and channel financing toward energyâefficient retrofits and affordable new builds.
Conclusions for PanâEuropean Stakeholders
For audiences interested in sustainable housing, the paper provides a comprehensive map of how EUâlevel policies intersect with national housing systems, highlighting the dual role of the EU as both a catalyst for financialisation and a potential venue for coordinated social housing reforms. The authors suggest that future EU action should prioritize regulatory tools that curb speculative investment, safeguard affordable housing stock, and align financial instruments with climateâfriendly renovation targets to achieve a more equitable and sustainable housing landscape across Europe.

