Study on “Affordable Sustainable Housing in the EU”

This comprehensive study, titled “Affordable Sustainable Housing in the EU,” was published in 2024 by the Center for Social and Economic Research (CASE) for the European Economic and Social Committee (EESC). The research is a critical response to the ongoing housing crisis in Europe, where rising housing and energy costs have become the largest household expenditures. Over 10% of urban households and 7% of rural households spend more than 40% of their disposable income on housing, a situation worsened by multiple factors including increasing construction costs, rising mortgage rates, and the impacts of climate change.

The study emphasizes that housing has become a pressing challenge across Europe. It highlights how recent crises, such as COVID-19 and energy supply issues, have compounded existing difficulties in the housing market. The research outlines the importance of establishing affordable and sustainable housing, defining affordability as housing costs not exceeding 30-40% of household income and pricing at or below market rates based on Area Median Income.

The study identifies five essential dimensions of sustainability in housing: habitability and comfort, community and connectivity, economic accessibility, resource efficiency and circularity, and resilience and climate adaptation. These components are crucial for creating homes that not only meet the needs of individuals and families but also align with broader environmental goals.

The research highlights various EU-level initiatives, including the European Pillar of Social Rights, the European Green Deal, and the Renovation Wave Strategy, which collectively aim to facilitate the transition towards sustainable housing. It also examines national policy structures across Member States, classifying them into four governance types: concentrated, overlapping, scattered, and sectoral, each with its unique approach to housing policy.

The study notes several significant shifts in housing policy, particularly the movement from supply-side to demand-side measures since 2009 and the decentralization of housing authority from national to local levels. There is also an increasing involvement of the private sector and social economy in housing provision, alongside a growing emphasis on energy efficiency and sustainability.

Digitalization is another focal point of the study, with varying levels of implementation across Europe. It reports that 18 countries have policies for construction digitalization, although the adoption of Building Information Modeling (BIM) and Artificial Intelligence remains moderate and in early stages, respectively. The uneven implementation of energy performance databases presents additional challenges.

The research outlines medium-term priorities for 2030, including the need to double building renovation rates and create 160,000 green jobs. Long-term goals for 2050 aim for carbon neutrality in the housing sector and the establishment of fully integrated sustainable housing systems.

This study is valuable for policymakers, social economy housing providers, civil society organizations, urban planners, and impact investors. Its findings are particularly relevant for developing strategies that address Europe’s housing challenges while meeting climate objectives and social needs.

The authors of the study include Agnieszka Kulesa, Agnieszka Maj, Aleksandra Owczarek, Anna Wiktorow-Bojska, and Karolina Zubel, all contributing their expertise to this essential resource aimed at fostering inclusive, affordable, and sustainable housing throughout Europe.