What could an EU Commissioner do to tackle the housing crisis?

This article, published by Euronews on August 13, 2024, by Paula Soler, discusses the recent commitment made by European Commission President Ursula von der Leyen to appoint an EU commissioner dedicated to tackling the ongoing housing crisis in Europe. This initiative arises in the context of an alarming rise in housing costs, with average rents increasing by nearly 23% and house prices soaring by almost 48% from 2010 to the end of 2023. These escalating costs have led to protests across various cities, including Dublin, Amsterdam, and Lisbon, highlighting the urgent need for affordable housing solutions.

In her address to the European Parliament, von der Leyen acknowledged the struggles faced by citizens in finding affordable homes, emphasizing that if it matters to Europeans, it must matter to Europe. She outlined her policy guidelines, proposing the first-ever European affordable housing plan and the establishment of a dedicated commissioner to oversee housing matters, a demand made by the Socialists to secure support for her second term. The proposed housing plan aims to address the needs of various demographics, including students, single-parent families, and young workers.

Despite these initiatives, there remains a significant investment gap in social and affordable housing. Current regulations allow member states to use public funds primarily for the most vulnerable populations. There is a push for the recognition of social and affordable housing as a service of general economic interest, which would broaden the scope of support. Historically, housing has not been a priority for EU discussions, with joint ministerial meetings on the topic resuming only in 2022 after a decade of stagnation. Advocates argue that the EU can play a crucial role in influencing housing policy through various regulatory frameworks.

To bridge the investment gap, von der Leyen’s policy plans include a review of state aid rules, offering member states greater flexibility to support housing initiatives. Additionally, there are proposals to double cohesion policy investments in affordable housing. The European Investment Bank is expected to collaborate on a pan-European investment platform aimed at attracting private and public investment for affordable and sustainable housing. The Social Climate Fund will also allocate at least €86.7 billion from 2026 to 2032 to support vulnerable groups.

The article notes that proposals from the Social Democrats to regulate short-term rentals, such as those offered by Airbnb, were not included in von der Leyen's policy agenda. The rise in rental prices due to short-term rental platforms has been a concern for urban quality of life. Moreover, homelessness remains a critical issue, affecting approximately 890,000 individuals in the EU. Although there is recognition of homelessness as a significant housing challenge, concrete proposals to address it are still lacking.

MEP Li Andersson highlighted the importance of sharing successful strategies among EU countries, citing Finland's effective approaches to reducing homelessness as a model. The upcoming appointment of a housing commissioner by von der Leyen will be pivotal in establishing a coordinated strategy to tackle these pressing housing issues. Member states have until August 30 to propose candidates for the new commission, which will define the powers and responsibilities of the housing commissioner.