Housing in the EU: The EU as a Commodifying Force

Overview of the Working Paper

The study “Housing in the EU: The EU as a Commodifying Force” 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 Pédussel Wu (lead editor) and Reingard Zimmer, investigates how EU policies influence the ongoing housing crisis across member states, integrating Aalbers’ theory of housing financialisation with Scharpf’s concepts of positive and negative integration.

Key Findings on EU‑Driven 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 social‑housing companies. EU initiatives such as the Capital Markets Union, the removal of interest‑rate caps, and liberalised credit controls have increased mortgage availability, driving up house prices and rental rates. Competition‑law 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 state‑aid 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 market‑oriented models. The Stability and Growth Pact (SGP) imposes fiscal constraints that indirectly limit public investment in affordable housing, while the European Central Bank’s quantitative easing has expanded monetary liquidity, further inflating housing assets.

Policy Instruments and Recent Initiatives

The EU’s Urban Agenda (UAEU) and the Housing Partnership Action Plan (2018) propose guidance on regulation, capacity‑building workshops, data improvement, and gender‑focused housing policies. Although these actions remain largely soft‑power 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 home‑ownership 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 EU’s negative integration—removing barriers to capital mobility and market competition—has 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 market‑driven development. The paper argues that a de‑commodifying approach would require stronger positive integration, leveraging EU legal space to protect social housing, enforce rent controls, and channel financing toward energy‑efficient retrofits and affordable new builds.

Conclusions for Pan‑European Stakeholders

For audiences interested in sustainable housing, the paper provides a comprehensive map of how EU‑level 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 climate‑friendly renovation targets to achieve a more equitable and sustainable housing landscape across Europe.