Overview of the Policy Paper
The Energy Cities policy paper “Tackling the Housing Crisis for Fairer, More Liveable and Resilient Cities” presents five evidence‑based recommendations for an EU Affordable Housing Plan. Authored by Mélanie Bourgeois and reviewed by Simona Aronica, the paper is published by Energy Cities, a network that supports local authorities across Europe in the transition to sustainable, climate‑compatible cities.
Unlocking Vacant Buildings
Across the EU more than 30 million dwellings are under‑occupied or vacant, offering a major, low‑carbon opportunity to increase housing supply. The paper calls for systematic monitoring of building occupancy, data sharing between energy, tax and local surveys, and the adaptation of data‑protection rules to identify vacancies. It also recommends tax incentives and regulatory tools to reduce long‑term empty homes, secondary residences and short‑term tourist rentals, while encouraging temporary housing solutions such as the Communa project in Brussels. Examples include Utrecht’s vacancy registration system (mandatory reporting after six months) and France’s “Zéro Logement Vacant” platform, which now involves 64 % of mainland municipalities.
Soft Densification and Co‑Living
The authors argue that new construction alone cannot meet demand without harming biodiversity and increasing emissions. They propose reaffirming the EU “no net land take” target for 2050 and prioritising refurbishment, repurposing and extension of existing buildings. National and local guidelines should foster inclusive co‑living models, flexible housing that can adapt to changing household sizes, and soft densification programmes that preserve green spaces. Case studies include Heidelberg’s flexible co‑living projects for trainees and the German “Jung kauft Alt” scheme, which offers subsidised loans for young families to buy and renovate older homes.
Future‑Proof Housing Principles
Housing must combine high energy performance, climate resilience and adaptability. The paper urges alignment with local heating and cooling plans, National Energy and Climate Plans, and the revised Energy Performance of Buildings Directive. It recommends modular, flexible architecture, shared facilities, and circular‑economy principles. Illustrative projects are Vienna’s social‑housing complex that reduced heat demand by 75 % and Budapest’s conversion of a 1970s vocational school into energy‑efficient homes for vulnerable families, slated for completion in 2026.
Affordability and Social Housing Core
The plan stresses that affordability encompasses rent, purchase price and running costs, especially energy bills. Over 41 million Europeans cannot adequately heat their homes. Recommendations include expanding renovation of existing stock, reforming State aid and SGEI rules, integrating Housing First approaches, and promoting community land trusts and housing cooperatives. Notable examples are Verona’s €19 million redevelopment of a former military site into 20 social‑housing units, and Lyon’s Housing First cooperative, supported by the Council of Europe Development Bank to deliver low‑rent housing for highly vulnerable groups.
Empowering Local Governments
Local authorities lack sufficient financial and human resources to address the €57 billion annual investment gap in affordable housing. The paper calls for dedicated EU funding in the next Multi‑annual Financial Framework, targeting energy‑efficient renovation, reuse of under‑occupied buildings and new social housing. It also recommends that EU support be allocated based on housing‑need indicators (affordability, homelessness, overcrowding) rather than purely regional development criteria, and that technical assistance, training and staff funding be provided to strengthen municipal capacity in planning, permitting and project delivery.

