President's State of the Union speech addresses the housing crisis

The content discussed in this summary is derived from a speech delivered by European Commission President Ursula von der Leyen during the State of the European Union address on September 10, 2025, in the European Parliament in Strasbourg. The European Commission is a key institution of the European Union responsible for proposing legislation, implementing decisions, and upholding EU treaties. The publisher of this content is the European Commission, which regularly addresses pressing issues facing Europe.

In her address, President von der Leyen tackled the ongoing housing crisis that has become a significant concern across Europe. She emphasized that a home transcends being merely a physical structure; it represents safety, warmth, and a sense of belonging. However, many Europeans now face anxiety related to housing, as home ownership and affordability have become increasingly challenging.

The speech included stark statistics that highlight the severity of the housing issue. Since 2015, house prices have surged by more than 20%, while the number of building permits has declined by over 20% in the same period. Von der Leyen pointed out that this situation extends beyond a mere housing crisis; it is a social crisis that disrupts the social fabric of Europe and threatens its competitiveness.

The consequences of the housing crisis are dire, affecting essential workers such as nurses, teachers, and firefighters, who struggle to afford housing in the areas they serve. Additionally, students may drop out due to unaffordable rent, and young individuals are delaying starting families. These societal implications underline the urgency of addressing housing affordability and accessibility.

In response to these pressing challenges, von der Leyen announced the introduction of the first-ever European Affordable Housing Plan. This initiative aims to make housing more affordable, sustainable, and of higher quality. The plan will be rooted in local realities, recognizing the diverse housing needs across different regions in Europe.

The President called for a radical overhaul of housing policies, advocating for the revision of State aid rules to facilitate housing support measures. She emphasized the necessity of simplifying the process for building new homes and student residences. Furthermore, she mentioned a legal initiative targeting short-term rentals to address ongoing issues in the housing market.

To successfully tackle the housing crisis, von der Leyen urged for collective action from all segments of society, including lawmakers and stakeholders. She proposed convening the first EU Housing Summit to prioritize housing on the European agenda.

Finally, von der Leyen reinforced the idea that housing is not just a commodity but a matter of dignity and fairness, linking it to Europe's future. She reminded the audience that the European Pillar of Social Rights recognized housing as a social right eight years prior, emphasizing the need to turn this commitment into reality.

This summary encapsulates the key points from President von der Leyen's speech, reflecting the urgency and importance of addressing the housing crisis in Europe through sustainable and equitable solutions.