Preferential loans for first-time homebuyers, stronger support for social housing, and greater involvement of the European Investment Bank in financing residential construction are among the key proposals included in the European Parliament’s newly adopted report on the housing crisis in the EU. MEPs emphasize that rising prices and limited housing availability pose a major challenge for young people and families across Europe.
“For the first time in its history, the European Parliament has adopted a report on housing. It is very positive that both the European Commission and the European Parliament have addressed the housing crisis, which affects virtually every country, not just Poland,” said Joanna Scheuring-Wielgus, Member of the European Parliament from the New Left (S&D), in an interview with Newseria.
On March 10, the European Parliament adopted housing recommendations with 367 votes in favor. The report summarizes the work of the Special Committee on the Housing Crisis in the EU (HOUS). Its authors highlight that millions of Europeans face insecure living conditions due to the housing crisis and call on EU authorities to take action to address rising prices and insufficient housing supply.
EU data show that over the past decade, housing prices have increased by more than 60% on average, while rents have risen by nearly 30%, significantly limiting access to housing—especially for young people. In addition, in some member states, particularly in Southern and Eastern Europe, overcrowding and inadequate housing conditions remain serious issues, further exacerbating the crisis.
“Young people simply cannot access housing because it is too expensive. Due to low interest rates, housing has effectively become an investment tool—but only for those who already have capital,” said Marlena Maląg, Member of the European Parliament from Law and Justice (PiS). “If young people have jobs and aspirations to start a family, but housing is unavailable, in most cases they will postpone or abandon those plans, and the cycle continues.”
According to the European Central Bank, disparities in access to homeownership have widened over the past 15 years, and entry into the housing market is increasingly delayed. As a result, in some member states, nearly 70% of people aged 18–34 have no alternative but to continue living with their parents.
The scale of the problem highlights the need for systemic changes at the national level and greater involvement of EU institutions. The report calls for the introduction of financial instruments to improve housing affordability, the expansion of social and municipal housing, the creation of legal frameworks to facilitate implementation in member states, and the acceleration of investment processes—particularly by simplifying administrative procedures and shortening the time required to obtain building permits.
“The European Parliament report includes proposals encouraging countries to introduce regulations enabling preferential housing loans. Such solutions already exist in countries like France and Spain,” noted Joanna Scheuring-Wielgus, who was involved in the work of the HOUS committee.
The Parliament also stresses the need to increase housing supply and expand rental housing, including publicly funded projects. Currently, social housing accounts for only 6–7% of total housing stock in the EU, which significantly limits the ability to support people facing housing difficulties and contributes to persistently high levels of homelessness.
“The report places strong emphasis on homelessness. For the first time, the European Parliament is speaking about it so openly, as around 1.3 million people in Europe are homeless, including approximately 33,000 in Poland. This is something we should be ashamed of, and the Parliament wants to address it,” said the New Left MEP.
A key element of the recommendations is also increasing the scale of financing for housing investments. Analyses cited in EU documents indicate that the investment gap in affordable housing in Europe amounts to several hundred billion euros annually. Therefore, the European Parliament calls for greater involvement of EU institutions, including the European Investment Bank, and for frameworks that will facilitate the implementation of new support instruments by member states.
Among the recommendations are also tax incentives, including support for first-time buyers and measures aimed at increasing the availability of long-term rental housing.
The report also highlights challenges such as limited housing supply and growing pressure from short-term rentals. In many European cities—especially popular tourist destinations—short-term rental platforms significantly reduce the availability of housing for residents. According to the HOUS committee, a better balance is needed between tourism development and housing needs. In 2024 alone, guests spent 854.1 million nights in such accommodations across the EU.
“The report also addresses short-term rentals and property rights. In some EU countries, existing laws mean that once a landlord rents out a property, they may struggle to regain control over it,” said Marlena Maląg.
Rising costs of construction are also affecting the housing market. This includes both the cost of materials and labor, as well as regulatory requirements, particularly those related to energy efficiency standards for buildings.
“Unfortunately, to some extent, the EU itself has contributed to the situation on the housing market through its lack of competitiveness and regulatory burden. If we look at the buildings directive, which sets requirements for adapting buildings within specific timelines, housing will become even more expensive. These actions are contradictory—on the one hand, we talk about ambitious goals, and on the other, we see policies that hinder progress,” Maląg argued, noting that this was one of the reasons why the European Conservatives and Reformists group abstained from voting on the HOUS report.
Politicians emphasize that housing policy remains the responsibility of member states, and the adopted report is non-binding, offering recommendations rather than a single unified model for the entire EU. At the same time, the scale of the crisis is so significant that it requires action at the European level.
“Following the vote in the European Parliament, we know that the Commission intends to create new legal frameworks to encourage member states—positively—to implement these changes. We are aware that the housing crisis exists everywhere and that reforms are necessary. It is good that we are moving in this direction,” said Joanna Scheuring-Wielgus. “Step by step, we aim to secure funding so that young people can access preferential loans and to effectively combat homelessness across the EU.”
“The European Union does not provide concrete solutions on how to increase housing supply. I see this more as a discussion and a positive signal that a program for affordable housing should be developed, and that national solutions should improve access to housing,” added Marlena Maląg.
She also stressed that Poland must now define its housing needs and develop appropriate solutions.
“The programs we will present ahead of the 2027 elections will be based on the activities of Bank Gospodarstwa Krajowego. This is an institution that, in cooperation with local governments, can create real programs to help young people obtain their own homes,” the PiS MEP concluded.
