On Tuesday, the European Commission presented the first comprehensive EU-level action plan to address the deepening housing crisis across the bloc. The initiative responds to record-high home prices, a growing number of people experiencing homelessness, and mounting tensions in the short-term rental market, which in many cities is reducing the availability of housing for residents.
The strategy focuses on boosting housing supply—exceptionally affordable homes—and strengthening regulatory tools that will enable national and local authorities to manage rental markets more effectively. Although housing policy formally remains the responsibility of member states, Brussels has concluded that the scale of the problem requires coordinated action at the EU level.
According to Eurostat data, average home prices across the EU have risen by around 60% over the past 15 years, while rents have increased by nearly 30%. At the same time, the European Commission estimates that mobilising private capital could channel as much as €375 billion into the housing sector by 2029.
The plan also seeks to curb the negative impact of short-term rentals on housing availability. In this context, it refers to EU rules adopted in 2022 that require platforms such as Airbnb, Vrbo, and Booking.com to share data on hosts and bookings with local authorities.
A Social Crisis
An estimated 1.3 million people across the European Union are currently without a roof over their heads, while housing prices and rents have risen faster than household incomes in recent years. This trend is widening inequalities, restricting labour mobility, and increasingly being viewed as a threat to social stability.
“For too many Europeans, having a home has become a source of anxiety,” European Commission President Ursula von der Leyen recently said, announcing stronger EU engagement in housing policy.
Building More—and Faster
The first pillar of the plan is to stimulate residential construction and remove barriers that are slowing investment. The Commission highlights challenges related to financing costs, administrative procedures, access to land, building materials, and labour shortages. Public debate increasingly points to the need to build several million new homes per year to meaningfully reduce Europe’s housing supply gap.
Changes to state aid rules are expected to play a key role. Housing Commissioner Dan Jørgensen has indicated that existing regulations can be too restrictive when it comes to supporting the construction of affordable housing. The Commission wants to adapt these rules to crisis conditions without undermining the principles of the single market.
At the same time, Brussels is pushing for greater mobilisation of private capital and investment instruments. With funding needs running into the hundreds of billions of euros, stabilising the housing market will be difficult without the active involvement of private investors and financial institutions.
Tighter Oversight of Short-Term Rentals
The second core element of the plan concerns short-term rentals. The Commission points to already adopted EU regulations that introduce registration requirements for listings and standardised data-sharing with public authorities. The aim is to enable effective enforcement of local rules, including caps, taxation, and safety standards.
These measures respond to pressure from cities that argue that part of the housing stock is being diverted from the long-term rental market to tourism. The problem is particularly acute in major urban centres with high property prices. Spain has already tightened enforcement against illegal listings, while Barcelona has announced plans to phase out licensed short-term rentals entirely by 2028.
Rising Prices, Rising Political Pressure
Eurostat data show that, over the long term, housing prices and rents across the EU have risen faster than wages, although the scale of the problem varies significantly between countries. As a result, housing has increasingly moved onto the political agenda as a social and economic issue, rather than being treated solely as a market phenomenon.
The Commission stresses that it does not intend to replace national housing policies. Instead, it aims to provide member states with a toolbox: more flexible regulatory approaches where justified by crisis conditions, financial support, and common standards in cross-border areas such as digital rental platforms.
The coming months will show whether member states and the European Parliament agree to far-reaching changes—particularly in the areas of state aid and fiscal policy—and whether the new obligations imposed on short-term rental platforms translate into more effective enforcement of local rules and a tangible improvement in housing availability.
Source: managerplus.pl
