Whilst tenancy law and social housing are matters for individual Member States, housing markets are becoming increasingly globalised and housing-related problems more acute.  As a result, housing policy has come into the focus of the EU. A special committee on the housing crisis  (HOUS) was set up in the EU Parliament at the end of 2024. Its aim was to assess housing needs across the EU, analyse existing housing policy measures and use the findings to help implement a European plan for affordable housing. Even before the HOUS Committee had presented its report, the European Commission had unveiled its plan for affordable housing on 16 December 2025. This was followed on 10 March 2026 by the adoption of the initiative report on tackling the housing crisis in the European Parliament.

The European Commission’s plan for affordable housing

In the introduction to the Affordable Housing Plan, the Commission states that housing is a fundamental right and highlights the palpable sense of injustice that prevails across Europe due to the unaffordability and scarcity of housing. It calls for decisive European action to ensure affordable, sustainable and high-quality housing, whilst housing policy remains the responsibility of the Member States.

The plan comprises four pillars, the first of which concerns the expansion of housing supply. To this end, innovative and resource-efficient construction methods are to be promoted, whilst planning permissions and renovations are to be accelerated by removing bureaucratic hurdles. The second pillar addresses the mobilisation of public and private investment. A pan-European investment platform for affordable and sustainable housing is intended to make it easier for public and private actors to channel funds financial resources from EU funds into housing construction. The SGEI Decision adopted at the same time as the Commission’s plan also exempts aid for affordable housing from state aid rules. The third pillar provides for immediate support to address the impact of short-term rentals and speculative practices. The fourth pillar focuses on protecting those particularly affected by the housing crisis. It includes support for housing options for young people and social housing, as well as assistance for people in precarious living situations.

Based on this plan, the Commission is currently drafting, among other measures, the Affordable Housing Act. Especially in regions where there is significant pressure on the housing market, the aim is to support the regulation of short-term rentals, encourage construction and streamline planning and approval processes. No specific measures against speculation are planned yet. According to Dan Jørgensen, EU Commissioner for Energy and Housing, there is still a lack of sufficient data and evidence on the impact of speculation on rental prices, as he recently explained at a meeting of the EMPL Committee of the European Parliament.

Initiative report by the European Parliament

On 10 March 2026, the European Parliament adopted the final report of the HOUS Committee by 367 votes to 166, with 84 abstentions. The report emphasises that millions of Europeans are suffering from precarious housing situations. Accordingly, it calls for EU initiatives to support construction and renovation measures to tackle rising prices and housing shortages. Specific funding is also to be allocated to improving the energy efficiency of residential buildings and combating energy poverty. To improve living standards, newly built homes must meet certain quality standards, including those relating to insulation and air quality.

In the area of short-term rentals, the European Parliament is calling for a balance to be struck between the needs of the tourism sector and access to affordable housing. In towns and cities, an appropriate proportion of public and social housing should ensure that the housing supply for vulnerable households is improved. Whilst Member States are called upon to strengthen tenants’ rights and ensure that disproportionate rent increases are prevented, there is also a call for taking tougher action against the illegal occupation of properties. With regard to state aid rules, it is suggested that greater account be taken of national differences in housing markets.

To encourage investment, the report calls for better coordination of EU funding, including unused funds from the Recovery and Resilience Facility. In addition, tax relief is to be introduced for low and middle-income earners. To reduce the administrative burden in the housing sector, the European Parliament is calling on the Commission to present a simplification package. Approval procedures should thus be completed within a maximum of 60 days. In order to strengthen the sovereignty of the EU’s construction and renovation sector, minimum ‘Made in the EU’ origin requirements should apply to components in EU co-funded projects. Training, fair wages and the mutual recognition of professional qualifications should improve working conditions and the mobility of skilled workers.

Initial reactions to the proposals for tackling the housing crisis

The European Commission’s plan was generally welcomed by progressive organisations. The Foundation for European Progressive Studies (FEPS) described it as a historic milestone for the EU and highlighted positively that it addresses short-term rentals, homelessness and energy poverty. However, in some areas, the plan was criticised for not being ambitious enough. The International Union of Tenants (IUT), for example, called for clearer conditions such as rent caps and open-ended tenancy agreements when allocating funding. The European network SOLIDAR criticised the lack of measures to combat the financialisation of the housing market and called for rent caps, greater protection for marginalised groups and strengthened social rights. AK welcomed the revision of state aid rules,  but criticised restrictions on the groups of people eligible for funding.

The European Parliament’s report on the housing crisis also received both praise and criticism. Andreas Schieder, S&D spokesperson on housing and the only Austrian member of the HOUS Committee, described the report as a good basis for genuine European measures on affordable housing. It contains clear demands, such as regulations on short-term rentals, funding for social and affordable housing, tackling homelessness and strengthening social housing models following the Vienna model. However, Rasmus Andresen (Greens/EFA), on the other hand, has sharply criticised the report as a gift from the Conservatives to property giants. Among other measures, he calls for the introduction of an EU transparency register for property owners. And the European Environmental Bureau (EEB) criticises the fact that the Commission and the European Parliament are focusing too much on construction rather than renovations, thereby jeopardising existing health and environmental regulations through their ‘simplification agenda’.

Further information:

EU Commission: Commission takes action for more affordable housing across Europe
EU Commission: SGEI Decision (EU) 2025/2630
EU Parliament: Tax incentives, renovation and less red tape to tackle the EU’s housing crisis
EU Parliament: European Parliament resolution of 10 March 2026 on the housing crisis in the EU
AK EUROPA: For affordability and tenant protection. The International Union of Tenants' perspective on the EU's housing policy initiatives
AK EUROPA: Housing crisis in Europe. Draft report causes discontent in the EU Parliament
AK EUROPA: New special committees in the EU-Parliament. Impetus for affordable housing and the protection of democracy
AK EUROPA: Housing crisis in Europe. What can the EU do to solve it?
AK EUROPA Position: Affordable housing: Proposed revision of state aid rules for services of general economic interest (SGEI Decision)
FEPS: Commentary on the EU Affordable Housing Plan
International Union of Tenants: A Milestone for Affordable Housing in Europe
SOLIDAR: European Affordable Housing Plan - reaction from a social rights perspective
EEB: EU housing vision falls short on affordability and sustainability once again