Initial comments on the European Commission’s Affordable Housing Plan

To read more about our in-depth thinking around affordable housing, please read here. These are some first reactions, but a more thorough analysis of the plan is essential to assess its feasibility and expected value.

Two days ago, the European Commission published its first Affordable Housing Plan. It is encouraging to see the EU stepping more clearly into the housing space by offering policy guidance, technical support and better access to funding. While housing remains a national responsibility, the need for coordinated European action is rightly acknowledged.

We welcome the recognition of speculation and financialisation as structural drivers of the housing crisis, which should now be followed by concrete action. Most importantly, framing access to housing as a fundamental right at the EU level is a first step in the right direction.

However, the EU Affordable Housing Plan still heavily relies on new construction as a primary solution. This is problematic. Business-as-usual large-scale construction threatens the Union’s and Member States’ climate and biodiversity commitments. Housing must be made affordable while protecting the ecological systems on which we all depend.

Europe needs to address its housing crisis without compromising its climate and environmental goals. This is a challenge, but also an opportunity to do things differently – or even better – by building on viable alternatives, such as:

1. 𝐏𝐫𝐢𝐨𝐫𝐢𝐭𝐢𝐬𝐞 𝐮𝐬𝐢𝐧𝐠 𝐭𝐡𝐞 𝐞𝐱𝐢𝐬𝐭𝐢𝐧𝐠 𝐛𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐬𝐭𝐨𝐜𝐤 𝐦𝐨𝐫𝐞 𝐞𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐭𝐥𝐲

Renovation and transformation need to be upscaled, but distribution also matters. How many dwellings could be made available if housing space were more equally distributed? Instruments such as taxation based on square metres per person have been suggested to encourage more efficient and fair use of housing resources.

2. 𝐒𝐜𝐚𝐥𝐞 𝐧𝐨𝐧-𝐬𝐩𝐞𝐜𝐮𝐥𝐚𝐭𝐢𝐯𝐞 𝐚𝐧𝐝 𝐜𝐨𝐦𝐦𝐮𝐧𝐢𝐭𝐲-𝐛𝐚𝐬𝐞𝐝 𝐡𝐨𝐮𝐬𝐢𝐧𝐠 𝐦𝐨𝐝𝐞𝐥𝐬

Innovative models, such as co-housing in cities like Barcelona and Vienna, have been shown to provide alternatives to speculative housing solutions. They focus on meeting real housing needs rather than maximising economic returns.

3. 𝐁𝐮𝐢𝐥𝐝 𝐝𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐭𝐥𝐲 𝐰𝐡𝐞𝐧 𝐧𝐞𝐰 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐜𝐭𝐢𝐨𝐧 𝐢𝐬 𝐧𝐞𝐜𝐞𝐬𝐬𝐚𝐫𝐲

In growing cities, some new construction will still be needed. In these cases, the EU and Member States should support deep circular solutions, renovation-first approaches and the use of wood and other bio-based and low-impact construction materials. The Affordable Housing Plan could also connect more strongly to existing delivery frameworks, for example the EU Mission for Climate Neutral and Smart Cities.

The housing crisis is not just about numbers

The housing crisis is not just about numbers; it is about values, priorities, and coherent action. Ultimately, it is about ensuring a life of dignity for current and future generations. The present and future of housing affordability depend on how the EU sets the right direction now.

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