Context and Publication Details
The working paper titled "Housing in the EU: The EU as a Commodifying Force" was authored by Jonathan Sidenros and published as Working Paper No. 249/2025 in collaboration with the Berlin Institute for International Political Economy (IPE) and the Berlin School of Economics and Law. This paper aims to explore the European Union's impact on the ongoing housing crisis across its member states, particularly focusing on how EU policies contribute to the commodification of housing.
Key Findings
The study reveals that the EU has significantly influenced the housing sector through various mechanisms, including mortgage market liberalization, fiscal regulations, monetary policy, and competition law. Since 2010, average rents in the EU have increased by 19% and house prices by 47%, far outpacing wage growth. The European Parliament reported a 70% rise in homelessness over the past decade, with estimates indicating at least 895,000 homeless individuals in the EU, highlighting a pressing housing crisis.
Theories and Frameworks
Sidenros employs Aalbers' theory of housing financialization and Scharpf's concepts of positive and negative EU integration to analyze four modes of housing financialization: mortgage debt, mortgage securitization, financialization of rental housing, and financialization of social housing companies. The findings indicate that EU policies have reinforced a hierarchical conflict between the single market's interests and local housing administration, often favoring market liberalization at the expense of social housing commitments.
Housing Crisis in the EU
The paper discusses how the EU's Urban Agenda, introduced in 2017, aims to combat housing exclusion and reinforces housing as a fundamental right. However, it underscores a contradiction: the EU lacks legal authority to legislate directly in housing matters. Despite this, the EU has a significant influence on housing through its economic policies, which often prioritize market efficiency over social equity.
Financialization Trends
The study identifies a trend toward financialization within housing, where housing is viewed increasingly as a financial asset rather than a human necessity. This perspective has led to higher mortgage debts, increased pressure on rental markets, and the commodification of social housing. The research highlights how EU competition laws intersect with social housing regulations, often undermining the social ethos of housing by incentivizing market-driven approaches.
Conclusion
In conclusion, the paper emphasizes the EU's role in exacerbating the housing crisis through its policies that prioritize market forces over social inclusion. It calls for a re-evaluation of EU housing policies to ensure that they align with the commitment to housing as a human right. By addressing the commodification of housing, the EU could potentially mitigate the impacts of rising rents, homelessness, and social exclusion across its member states.