European Union

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Housing is becoming an urgent issue in many European Union (EU) countries, as rents and property prices are currently increasing faster than inflation.

While housing is generally the responsibility of EU countries, the EU supports national and local authorities through partnerships and social housing funding programmes. At the same time, the European Parliament is urging broader EU action to promote decent and affordable housing for all.

Housing as a European Union priority

Ahead of her re-election, Commission President Ursula von der Leyen promised to make housing an EU priority, with a new Commissioner responsible for housing and a European affordable housing plan.

In its 2024-2029 political guidelines, the European Commission pledged to enable EU countries to double the investments in affordable housing planned under the EU’s cohesion policy, which aims to reduce differences between EU regions.

The EU funds housing projects in several ways, including by providing over €100 billion for energy-efficiency renovations up to 2030. EU financing comes from many sources, and is designed to complement other public funding at national or regional level.

The Commission is also collaborating with the European Investment Bank (EIB) to provide the financing and expertise needed to build more innovative, energy-efficient and affordable homes.

Additionally, the Commission and the EIB are working with the EU’s national promotional banks and international financial institutions to develop new financing opportunities for affordable and sustainable housing across Europe.

The European Parliament’s position

In two March 2025 resolutions on employment and social priorities and on the European Social Fund Plus (ESF+), Parliament stressed that the EU’s budget must align with social priorities like affordable housing, and called for more resources to support people in vulnerable situations.

Parliament called on the Commission and EU Member States to make it easier to build, convert and renovate accessible and energy-efficient housing that is affordable for people at risk of poverty and those wanting to buy a property.

It underlined that the ESF+ can be instrumental in this, and called for a stronger ESF+ in the next EU seven‑year budget (beyond 2027) to focus on homelessness and access to housing, including social housing and affordable rental schemes.

In September 2025, the European Parliament adopted a resolution on using cohesion funds to resolve the housing crisis. It asked the authorities managing EU funds to address housing challenges in all regions, especially remote areas and islands, by using the mid-term review of cohesion policy programmes as an opportunity to increase housing-related investments.

The Parliament’s resolution also suggested broadening the scope of several EU funds to include innovative approaches for affordable housing. It asked EU countries and regions to develop strategies on affordable and sustainable housing for middle and low-income households in urban and rural areas.

Special Parliamentary committee on housing in the EU

In December 2024, Parliament set up a special committee to propose practical ways for the EU to tackle housing issues.

The Special Committee on the Housing Crisis in the EU is investigating the root causes of the housing crisis through a series of hearings, and will report its findings at the end of its mandate in early 2026.

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Source : © European Union, 2026 - EP

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