EU unveils €153B plan to build 2.2M affordable homes yearly, tackling housing crisis

The European Commission has launched the first historic European Affordable Housing Plan, aiming to deliver 2.2 million new homes annually to address surging housing costs and rental pressures across the EU. The plan combines investment, innovation, and regulation reforms to improve access to sustainable, high-quality housing, while supporting vulnerable populations.

The EU’s new 8-point strategy for affordable housing focuses on increasing supply, activating investments, reforming regulations, tackling short-term rentals in high-pressure areas, and supporting groups most affected by housing shortages.

“Millions of Europeans struggle to find homes they can afford,” the Commission said, noting that housing prices have surged by over 60% and rents by more than 20% in the last decade.

The 8-Point Plan

The strategy includes:

• Boosting housing supply via new construction and renovations
• Supporting innovation in the construction sector
• Attracting and retraining workers for the construction industry
• Regulating short-term rentals in pressure zones
• Reducing costs and administrative burdens
• Promoting energy efficiency to lower utility bills
• Mobilizing public and private investments
• Supporting vulnerable groups, especially young people

Target: 2.2 Million Homes Annually

The Commission estimates Europe needs to deliver over 2 million homes per year, including 650,000 additional units beyond the current 1.6 million. Meeting this target would require €153 billion in annual investments.

The plan also incorporates the New European Bauhaus (NEB) initiative, which will fund sustainable, affordable, and high-quality construction projects and promote circular and green building practices. A NEB Academy will enhance workforce skills, ensuring innovation and energy-efficient solutions.

Regulatory and Investment Support

The Commission will collaborate with member states to simplify rules that limit housing supply, particularly zoning and licensing processes. Revised EU state aid rules will facilitate funding for affordable and social housing.

A new legislative proposal on short-term rentals will support areas under severe housing pressure, while a Pan-European Investment Platform, in partnership with the European Investment Bank, will leverage national and regional banks to boost investment.

Additionally, the plan prioritizes “Housing First” solutions for the homeless, ensuring effective, long-term access to shelter.

Next Steps: EU Housing Summit 2026

The European Commission has already mobilized €43 billion in housing investments and will continue in the next long-term EU budget. A European Housing Alliance will be formed, bringing together member states, cities, regions, institutions, housing organizations, and social partners.

The Commission plans to present a progress report and will convene the first-ever EU Housing Summit in 2026, underlining the priority of making housing affordable, sustainable, and accessible across the continent.

Source: pagenews.gr