What the EU does for Affordable Housing

This document, published by the European Commission, outlines the initiatives and strategies the EU employs to address the affordable housing crisis. The EU recognizes that while local, regional, and national authorities primarily manage housing, it plays a vital role in funding and policy support to enhance the housing market across member states.

The EU mobilizes significant funding for housing, including over €22 billion for social housing and an estimated €85 billion aimed at energy efficiency renovations and new energy-efficient buildings. The Recovery and Resilience Facility promotes substantial investments and reforms in housing, and the Commission aims to double cohesion policy funding dedicated to affordable housing. It also introduces a new financial instrument to combine cohesion funds with resources from the European Investment Bank (EIB) and other financial entities. This initiative invites member states to expedite local planning and permitting processes to enhance the delivery of affordable housing.

The European Commission is set to propose a Construction Services Act to lower barriers for cross-border access to construction services, anticipated to be presented by late 2026. It is developing a European Strategy on Housing Construction, which focuses on enhancing productivity and competitiveness in the construction value chain. The strategy will address various aspects, including land use, permitting complexities, access to materials, technological innovation, and labor shortages. The aim is to accelerate the construction and renovation of sustainable housing while reducing costs and waste.

The EU promotes the New European Bauhaus initiative, which seeks to create attractive and sustainable living environments. The Affordable Housing Initiative aims to ensure that social and affordable housing benefit from the renovation wave, focusing on innovative processes, circular building practices, and community empowerment. The Commission also addresses the issue of vacant and underused buildings, exploring how to convert existing properties into livable spaces to alleviate the housing crisis.

Energy efficiency is a critical component of affordable housing. Many homes lack proper insulation, leading to high energy costs. The EU Affordable Energy Action Plan is designed to reduce bills and combat energy poverty. The Energy Performance of Buildings Directive aims for all EU buildings to be carbon-neutral by 2050, with a strong emphasis on accelerating investments in renovations while meeting the needs of vulnerable consumers.

The EU acknowledges that specific groups, including students, the elderly, disabled individuals, and marginalized communities, require tailored housing solutions. The operational toolkit for EU funds assists member states in providing social and affordable housing to these populations.

The Commission monitors housing market developments through the European Semester, assessing the macroeconomic impact of housing sector imbalances. Taxation plays a vital role in housing markets, and the Commission provides a housing taxation database to inform member states' policies.

The EU's comprehensive approach to affordable housing reflects its commitment to sustainable living and addressing the diverse needs of its population while promoting energy efficiency and social equity.