The politics of housing — Policy Brief

The Progressive Politics Research Network (PPRNet) released a policy brief titled The politics of housing in 2025. Authored by T. Abou‑Chadi, S. Häusermann and B. Bremer, the brief examines housing policy across Europe, focusing on political dynamics that influence sustainable housing development. The network, based at the Nuffield Politics Centre, is dedicated to interdisciplinary research that informs progressive policy making.

The brief outlines the current political landscape shaping housing across European nations, highlighting how national and EU‑level legislation, funding mechanisms and political party agendas affect the delivery of affordable, energy‑efficient homes. It notes that housing remains a central electoral issue, with climate‑change commitments driving new policy initiatives.

According to the brief, Europe faces a shortfall of approximately 30 million homes, with demand outpacing supply in both urban and rural areas. The authors cite recent Eurostat figures indicating that, on average, 1.8 new dwellings are built per 1 000 inhabitants annually, well below the 3.5 required to meet demand. The brief also presents data on the share of net‑zero‑ready housing, estimating that only 20 % of existing stock meets current energy‑efficiency standards.

The document references the European Green Deal’s target to renovate 35 million buildings by 2030, aiming to cut residential energy consumption by 30 %. It details national commitments, such as Germany’s “KfW‑Effizienzhaus” programme and France’s “Plan Maison Écologique”, which provide subsidies and low‑interest loans for retrofitting and new low‑carbon construction.

The brief analyses the role of EU funding streams, including the European Regional Development Fund (ERDF) and the Just Transition Fund, in supporting sustainable housing projects. It highlights that, as of 2024, EU‑level funding allocated to housing‑related climate action totals €12 billion, with an expected increase of 15 % annually. The authors discuss the economic multiplier effects of investment in green construction, estimating a creation of 1.5 jobs per €1 million invested.

Abou‑Chadi, Häusermann and Bremer examine the influence of various stakeholders—government bodies, private developers, NGOs and citizen groups—on policy formulation. The brief notes that public‑private partnerships have become a prevalent model, accounting for 40 % of major housing projects in the EU, and that citizen assemblies are increasingly consulted to shape local housing strategies.

The brief includes case studies from Sweden, the Netherlands and Italy, illustrating diverse approaches to sustainable housing. Sweden’s “Miljöbostad” model combines high‑performance building standards with rent‑control policies, while the Netherlands’ “Woningcorporaties” have pioneered circular construction techniques. Italy’s regional programmes demonstrate the integration of seismic retrofitting with energy‑efficiency upgrades.

The authors conclude with a set of evidence‑based recommendations: harmonise building codes across the EU, scale up financing instruments for low‑income households, strengthen data collection on housing performance, and promote cross‑border knowledge exchange. They argue that coordinated political action is essential to meet housing demand while achieving climate objectives.

The brief outlines practical steps for policymakers, including the establishment of a EU‑wide housing sustainability dashboard, the creation of tax incentives for green retrofits, and the adoption of stringent minimum energy‑performance standards for new constructions. It stresses the need for transparent monitoring and regular reporting to ensure accountability.