Tackling the Housing Crisis in Europe - Policy Brief

The policy brief titled "Tackling the Housing Crisis in Europe" was published by the Foundation for European Progressive Studies (FEPS) in partnership with Eteron, the Kalevi Sorsa Foundation, and Progres. Authored by Dimitra Siatitsa, Meriç Özgüneş, and Stefania Gyftopoulou, this document addresses the alarming housing crisis across Europe, highlighting the systemic issues that threaten housing as a fundamental right.

Housing affordability in the EU is a critical issue, with 8.8% of households spending over 40% of their income on housing, leading to nearly 900,000 homeless individuals. Factors contributing to the crisis include financialisation, market speculation, and corporate interests overpowering public regulations. The brief emphasizes that the crisis must be tackled on three fronts: increasing public and affordable housing, addressing energy poverty, and regulating short-term rentals (STRs).

The brief outlines a unique opportunity for action as housing rises to the forefront of the EU's political agenda. The EU aims to establish an Affordable Housing Plan, which will require a shift from market-driven solutions to socially just housing systems. It emphasizes the need for structural interventions and a common understanding of "social" and "affordable" housing across member states.

The document notes a significant shortfall in social and affordable housing across the EU. Public investment in housing has dropped from 0.17% of GDP in 2001 to just 0.06% in 2018, despite rising demand. Countries like Greece have no social housing stock, while nations like the Netherlands and Austria have robust social housing sectors. The brief stresses that social housing should be prioritized to ensure long-term affordability and counteract market volatility.

Energy poverty has severe implications for social equity, affecting marginalized groups disproportionately. This issue arises when households cannot afford essential energy services without compromising their well-being. The brief highlights the intersection of energy poverty with low incomes, high energy prices, and inefficient housing stock, pointing out the need for targeted interventions to alleviate energy-related hardships.

STRs are increasingly recognized as significant contributors to the housing crisis, inflating rents and reducing the availability of long-term rentals. The brief underscores the need for regulatory frameworks to manage STRs effectively while protecting long-term residents. It emphasizes that local authorities should have the autonomy to implement measures to control STR activities based on specific local needs.

The authors advocate for a comprehensive approach to housing that prioritizes social rights and public intervention. A binding EU Housing Rights Framework is proposed to ensure enforceable obligations rather than voluntary guidelines. The brief calls for coordination among various stakeholders, including local authorities and housing providers, to create a fairer housing landscape that aligns with environmental goals.

In conclusion, the policy brief serves as a significant call to action for addressing the multifaceted housing crisis in Europe, highlighting the urgent need for structural change and collaboration among various levels of governance to ensure sustainable, affordable housing for all.