Von der Leyen to push even harder on housing in 2026

This article, published by POLITICO and authored by Aitor Hernández-Morales and Ferdinand Knapp, discusses European Commission President Ursula von der Leyen's upcoming housing initiatives as part of the EU's legislative agenda for 2026. The piece highlights the Commission's commitment to addressing the ongoing cost of living crisis, particularly the affordability of housing in Europe.

During her speech to the European Parliament in Strasbourg, von der Leyen emphasized that "affordability is a main subject" of the Commission's Work Program for 2026. She underscored the pressing need to tackle high housing prices to "protect our citizens and uphold our values." Von der Leyen posed critical questions about the competitiveness of Europe if full-time workers cannot afford to live where job opportunities exist due to exorbitant housing costs.

The legislative agenda for 2026 will include a significant initiative focused on regulating short-term rentals, expected to be unveiled in the spring. This regulation is deemed essential as tourist flats contribute to the soaring housing costs in major cities across the EU. Housing Commissioner Dan Jørgensen voiced his determination to prevent locals from being pushed out of their neighborhoods, stating that the forthcoming proposal aims to find a "firm but fair approach" to regulation.

Towards the end of 2026, the European Commission plans to publish its Construction Services Act, which seeks to reduce regulatory burdens in the building sector. This legislation is intended to accelerate the construction of new homes, thereby contributing to alleviating the housing crisis. It will follow the Affordable Housing Plan, set to be released in December, which targets the financialization of housing and aims to curb speculation in the housing market.

The article notes the political ramifications of the housing crisis, which has been a catalyst for the rise of far-right parties in Europe. For instance, the Netherlands' Geert Wilders and his Party for Freedom capitalized on the housing shortage, linking it to issues of migration and asylum. Similarly, Portugal's Chega party gained traction by criticizing mainstream parties for their inability to address skyrocketing home prices.

Von der Leyen reaffirmed her personal commitment to tackling the housing issue ahead of her re-election as Commission president in 2024. She described the housing shortage as a social crisis during her State of the European Union address. The European Parliament has established a special committee to address this crisis, and national leaders are set to discuss the issue at the upcoming European Council summit in Brussels.

In summary, the article outlines the European Commission's proactive stance on housing affordability, focusing on regulatory measures and legislative initiatives aimed at creating a more sustainable living environment for all EU citizens. The ongoing discussions and upcoming proposals reflect the Commission's recognition of housing as a critical social issue that requires immediate and comprehensive action.