Overview of the European Parliament Study
The document, titled “Part 2: Mapping the housing needs in the EU, assessing the impacts of scarcity and providing an overview of relevant EU legislation,” is an analytical study commissioned by the Special Committee on the Housing Crisis (HOUS) of the European Parliament. Authored by Alina Makarevičienė, Greta Skubiejūtė, Agnė Zakaravičiūtė and Justinas Jočys, the work reflects the expertise of the Policy Department for Transport, Employment and Social Affairs (CASP). It was finalized in December 2025 and made publicly available through the European Parliament’s think‑tank website and a direct PDF link.
Scope of Housing Needs Across the EU
The study maps housing needs by territory, covering all Member States, rural and urban areas, outermost regions, islands, and diverse population groups. It highlights persistent inequalities in affordability, accessibility and quality, noting that many households spend more than 30 % of their income on housing—a threshold for cost‑burdened households. The analysis links housing scarcity to adverse effects on health, education and employment outcomes.
Key Drivers of Demand and Supply Gaps
Factors identified as amplifying demand include population growth, migration, student influx, and household formation. Supply constraints stem from limited land availability, fiscal rules, high construction costs, and lengthy planning procedures. The report emphasises that administrative and legal obstacles, especially in short‑term rental (STR) regulation, exacerbate the shortage.
Impacts of Housing Scarcity on Well‑Being
Evidence from case studies shows that in cities such as Barcelona, up to 68 % of low‑income renters are cost‑burdened, while in Dublin housing costs exceed 40 % of median disposable income. Health, education and labour market participation deteriorate where affordable housing is lacking, reinforcing social exclusion.
EU Legislative and Funding Frameworks
The study reviews EU instruments that shape national housing policies, including the European Commission’s housing‑related directives, funding mechanisms from the Cohesion Fund and the European Regional Development Fund, and the EU’s energy‑efficiency standards. It notes that EU legislation increasingly ties funding to sustainability criteria, encouraging Member States to adopt decarbonisation and energy‑performance measures in new and retrofitted dwellings.
Best‑Practice Case Studies
Eight city‑level examples illustrate varied policy responses:
- Barcelona (Spain) – STR licensing and inclusionary housing rules increased affordable units by 85 % between 2015 and 2023, while illegal tourist apartments fell by 9 400.
- Dublin (Ireland) – The “Housing for All” strategy targets 10 552 new social homes (2022‑2026) and uses cost‑rental schemes to improve affordability.
- Freiburg (Germany) – Low‑energy standards (≤65 kWh m⁻² yr⁻¹ heating) and extensive retrofits reduced residential emissions by 46 % from 1992 to 2010.
- Helsinki (Finland) – Housing First reduced long‑term homelessness by 71 % (2008‑2020) and lowered rent‑burden for social tenants to 5.20 €/m².
- Rankovce (Slovakia) – A “3E” self‑build programme enabled 37 Roma families to obtain legal, energy‑efficient homes between 2013‑2017.
- Sicily (Italy) – “€1 home” schemes regenerated historic centres, transferring roughly 800‑900 abandoned dwellings to private owners who must renovate them.
- Vienna (Austria) – Cost‑rent housing accounts for 43‑45 % of all residences; inclusionary zoning in new districts added about 2 800 affordable units (2019‑2023).
- Warsaw (Poland) – The “Housing Plus” programme aimed for 100 000 new affordable rentals but delivered only ~26 000 by 2020, highlighting delivery challenges in high‑cost metropolitan markets.
Methodology and Data Sources
The research combines quantitative EU datasets (Eurostat, OECD, European Cohesion data) with qualitative literature reviews, expert interviews and field observations. It employs AI‑assisted literature retrieval (Elicit, Perplexity AI, Consensus) to ensure comprehensive coverage of peer‑reviewed and grey‑literature sources published since 2020.
Sustainability Integration
Energy efficiency is a cross‑cutting theme: the study cites EU directives requiring nearly zero‑energy buildings (NZEB) and reports that retrofitting in German cities cut heating demand by up to 60 % relative to 1995 standards. It underscores that sustainable housing policies can simultaneously address affordability, climate targets and social inclusion.
Policy Recommendations for the EU
The authors propose coordinated actions: (1) strengthen EU‑wide land‑banking and inclusionary‑zoning tools; (2) align funding with stringent energy‑performance criteria; (3) harmonise STR regulation to protect long‑term rental supply; (4) expand cost‑rental and Housing First models to reduce homelessness; (5) support innovative financing for self‑build and symbolic‑price schemes in peripheral regions; and (6) improve data collection on housing cost‑burden across Member States to monitor progress.
Conclusion for Sustainable Housing Stakeholders
The study provides a pan‑European evidence base showing that housing scarcity drives social and economic disadvantages, while integrated policy mixes—combining regulation, public land use, targeted financing and sustainability standards—can mitigate these effects. For audiences focused on sustainable housing, the report highlights the importance of aligning affordability measures with climate‑neutral construction and energy‑efficiency upgrades to achieve resilient, inclusive urban environments across the EU.