Brussels cannot fix the housing crisis alone. But by working together at every level of government, we can bring this crisis to an end.
by Dan Jørgensen, European Commissioner for Energy and Housing
Every day across Europe, millions of people return home after work, school, or study and find safety, warmth, and stability. But for too many, that door opens onto uncertainty, overcrowding, damp walls, or nothing at all.
Over the past decade, house prices have risen by more than 60% across Europe, while rents have increased by around 20%. This comes with a human cost: nearly 17% of Europeans live in overcrowded housing, almost one in ten cannot afford to keep their homes warm. And around one million people have no home at all.
This is not just a market failure. It is a social emergency.
Families are forced to choose between rent and heating. Young people are locked out of housing markets before their adult lives even begin. Workers essential to our communities—teachers, nurses, police officers—are pushed further from the places they serve. And too often, people fall into homelessness because no one intervenes in time.
We cannot accept this in Europe. And we will not.
That is why, in December 2025, I presented the first-ever European Plan for Affordable Housing. This plan is a call to action—for governments, investors, industry, and communities—to act now, and act together.
Housing policy remains primarily the responsibility of national and local authorities. But Europe is no longer standing on the sidelines. The EU is adding horsepower, coordination, and scale.
First, we must invest — and invest fast.
We have eased state aid rules so public investment in affordable housing can happen now, not years from now. Over €43 billion is already being mobilised at EU level, and more funding will come. Together with the European Investment Bank and national promotional banks, we are launching a pan-European Investment Platform to unlock public and private capital—targeted at affordable, sustainable housing, student accommodation, and homelessness.
But investment must serve people, not speculation.
Europe needs responsible investors who build quality homes at fair prices. It does not need those who just profit from scarcity. That is why we will analyse housing speculation across Europe and act where markets are not working. We will promote investment models that put people ahead of short-term gain.
At the same time, we must build more — and build smarter.
Europe has the workers, the materials, and the know-how. What we need is speed and coordination. Through a European Strategy for Housing Construction, we will help move skilled workers and resources to where they are needed most, harmonise standards, cut red tape, and scale up innovative construction and renovation solutions.
But building alone will not solve the crisis.
While too many people are without a home, too many existing homes stand empty. Around 20% of Europe’s housing stock is vacant. This is unacceptable. We call on national and local authorities to act — and Europe will support them—to renovate, repurpose, and bring empty homes back into use.
We must also protect communities under pressure. People should not be pushed out of their own cities and neighbourhoods. That is why we will regulate short-term rentals, giving authorities the tools to act where housing stress is highest — without banning responsible tourism.
And we must put people first.
We call on Member States to step up their efforts to fight homelessness and prioritise access to housing for young people and students. Europe will back these efforts with targeted funding and support — but leadership at every level is essential.
This plan will succeed only if we choose unity over fragmentation and action over delay. That is why we are creating a European Housing Alliance and convening a European Housing Summit this year.
Leaders across Europe must step forward—not with declarations alone, but with decisions.
The housing crisis is not intractable. It is the result of choices — and it can be solved by choices.
This is an opportunity we cannot afford to lose.
This must be the moment we truly start working together in Europe: to give hope to our young people; to help our working families; to give a home to all.
