Living Cities: A peek at the EU’s Affordable Housing Plan

Published by POLITICO, authored by Aitor Hernández-Morales, the article dives into the European Union's Affordable Housing Plan, a response to soaring housing prices and rental costs across EU cities. The plan aims to alleviate the housing crisis that has been exacerbated by financialization and speculation in the housing market.

Housing Commissioner Dan Jørgensen highlighted that the plan will focus on "targeting the financialization of our housing stock." The initiative intends to address the commodification of homes, where properties are treated as investments rather than essential living spaces. Jørgensen emphasized the need for regulation to ensure that housing serves societal needs rather than purely market-driven profits.

The upcoming plan will revise state aid rules, enabling national governments to utilize public funds to construct homes for middle-class citizens who have been priced out of the market. Jørgensen underscored that while public investment is crucial, it must be complemented by public-private partnerships to effectively tackle the housing crisis. He is collaborating with the European Investment Bank and other financial entities to create models that will ensure that homes constructed with public money remain genuinely affordable.

Short-term rentals, a significant contributor to inflated housing costs, will also be scrutinized under Jørgensen's plan. Although specific measures were not detailed, he expressed concern over neighborhoods losing their social fabric due to the prevalence of these rentals, which often transform residential areas into transient hotel-like environments.

The plan is likely to suggest best practices for city leaders, drawing from examples in cities like Copenhagen, where regulations mandate that 25% of new developments consist of public or social housing. Jørgensen illustrated the feasibility of creating attractive affordable housing next to luxury units, showing that quality does not have to be compromised. He stressed that the private sector must share the burden of creating affordable housing, framing it as a political choice.

While Jørgensen has yet to announce a specific launch date, sources indicate that he plans to unveil the Affordable Housing Plan in mid-December, right before a critical European Council summit where EU leaders will discuss the housing crisis. This early release aligns with the urgency surrounding housing affordability in urban centers across Europe.

The article also touches on various urban challenges facing European cities, including climate issues, as the number of extremely hot days has doubled in many capitals over the past three decades. The implications of these changes further compound the urgency of addressing housing and infrastructure needs.

In summary, the EU's Affordable Housing Plan aims to create a more equitable housing market through regulation, public funding, and collaboration with the private sector, addressing the fundamental human right to adequate housing amid growing urban challenges.