The European Commission launches an alliance for affordable housing in the EU
Liviu Brăteanu
EU
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The European Commission has launched the European Housing Alliance, a platform that will bring together member states, regions, cities, EU institutions, and housing sector actors to coordinate the response to the housing crisis.
In short
The European Housing Alliance will function as a cooperation platform between national, regional, and local governments, EU institutions, and housing sector actors. The initiative aims to implement on the ground the European Plan for Affordable Housing, presented by the Commission to address the crisis affecting millions of Europeans. The Commission is also developing the Pan-European Investment Platform for Housing, which will better coordinate existing funding without creating new EU funds. Dan Jørgensen announced that he will propose an Affordable Housing Act, with tools for local authorities in areas affected by short-term rental pressures. The Commission is also preparing a simplification package for housing, to accelerate the supply of housing and reduce administrative delays.
The European Commission has launched the European Housing Alliance, a platform through which member states, regions, cities, European institutions, and housing sector actors will be able to cooperate for solutions to the housing crisis in the European Union.
The European Commissioner for Energy and Housing, Dan Jørgensen, invites member states, regions, cities, and stakeholders from the EU to join the alliance. The initiative is presented by the Commission as the first European alliance dedicated to housing and as a tool for the concrete implementation of the European Plan for Affordable Housing.
The alliance will operate as a common platform for national, regional, and local governments, EU institutions, and relevant actors, including representatives of youth, tenants, and homeowners. The goal is cooperation on solutions, sharing best practices, and connecting public policy decisions to realities on the ground.
"In a moment when the housing crisis affects communities across Europe, collaboration is more important than ever. The launch of the European Housing Alliance marks an essential step in building a common response to this fundamental challenge. By bringing together experts in housing, cities, regions, local leaders, and our member states, we create a common platform to shape the future of housing in Europe together. Through this alliance, we can transform shared knowledge into concrete action and contribute to ensuring access to affordable and sustainable housing for all in Europe," said Dan Jørgensen.
The alliance will operate based on the respect for the principle of subsidiarity and the advantages of multi-level governance. The Commission mentions open and inclusive participation, transparent working methods, flexibility and adaptability, as well as combining political cooperation with expert-level collaboration.
The launch took place in the context of the informal ministerial meeting on housing in Nicosia, Cyprus. The Cypriot Minister of Interior, Constantinos Ioannou, stated that housing is "a problem at the center of human dignity, social cohesion, and a fundamental pillar of the European social model."
According to Ioannou, access to adequate, affordable, and sustainable housing is not only a social priority but also a condition for economic growth and mobility, especially for young people and workers. He stated that rising pressures, limited supply, higher construction costs, and demographic pressures make access to housing increasingly difficult not only for vulnerable groups but also for the middle class.
Dan Jørgensen said at the same press conference that housing prices in the EU have increased by over 60% since 2013, while average rents have risen by about 20%, with larger increases in urban areas.
"The housing crisis is hitting many of our member states across the Union, and this must be the moment for political leadership, action, and unity," said the commissioner.
The Commission links the alliance to a broader package of housing measures. Jørgensen stated that the European Plan for Affordable Housing is the "compass" for the Commission in addressing the crisis and that the European Executive is now moving to concrete initiatives.
On the investment side, the commissioner said that an additional 10 billion euros will be mobilized from the EU budget this year and next year, and partner financial institutions have committed to mobilizing 375 billion euros by 2029.
The Commission is also developing the Pan-European Investment Platform for Housing. According to information published by the European Executive, the platform will not create new EU funding but will seek better coordination of existing funding instruments at the European, national, and local levels. The Commission states that the platform will support more efficient use of available resources, including through blended financing and better-prepared projects for mobilizing large-scale investments.
Jørgensen also announced a simplification package for housing, which will be presented next year and should help increase supply. He stated that work has already begun and that a call for contributions from stakeholders will soon be launched.
Simplifying procedures was one of the themes of the ministerial meeting. Ioannou stated that complex administrative procedures continue to delay new developments and renovations, but clarified that simplification does not mean deregulation.
"Our goal is to achieve the right balance between efficiency, environmental sustainability, accessibility, and social cohesion," said the Cypriot minister.
Jørgensen announced that the next major step will be a proposal regarding short-term rentals, which he described as a pressing issue in urban and tourist areas. He stated that the number of short-term rentals has nearly doubled between 2018 and 2024, and in some neighborhoods and tourist destinations, they can account for up to 20% of the housing stock.
"What we see is that sometimes these platforms have simply turned into money-making machines, pushing local populations out of the housing market and driving up prices in certain areas," said the commissioner.
He stated that he will soon present the Affordable Housing Act, which would provide local public authorities with a range of possible tools to limit the negative effects of short-term rentals in areas under housing pressure. The act would also include measures through which public authorities can stimulate affordable housing in these areas.
"In Europe, we want a housing policy that puts people before profit, social inclusion and well-being before financial gain," said Jørgensen.
The commissioner insisted that Brussels cannot solve the housing crisis alone. He stated that mobilization is needed at all levels of governance, which is why the Commission is launching the call to join the European Housing Alliance.
"I want experts in housing from member states, regions, cities, stakeholders, and local communities not only to be heard but to shape the future of housing together," said Jørgensen.
In response to a question about attracting private investments in affordable housing, Jørgensen said that the EU has already changed the rules regarding state aid for social housing, so that member states can support housing in a broader sense, including affordable housing.
He stated that the pan-European investment platform will allow different market actors to work together and mobilize the necessary funding. He added that simplification is important because too many new housing projects or renovations are prolonged due to bureaucracy and complex rules.
Ioannou stated that member states need to make investments in affordable housing more attractive to the private sector. He specified that the role of the Commission, through the European Plan for Affordable Housing, is to support the efforts of member states, but the responsibility for concrete plans remains at the national level.
The Cypriot minister stated that simplifying authorization can reduce administrative costs and make investments more attractive. He cited the digitalization of procedures as an example discussed at the meeting.
The housing crisis has become an increasingly important issue on the European agenda, given that rising prices, rental pressures, construction costs, lack of supply, and demographic changes affect access to housing in many member states.
The European Commission has presented the European Plan for Affordable Housing to address this crisis through a combination of investments, cooperation between levels of governance, simplification, more efficient use of existing funding, and sharing best practices.
The European Housing Alliance is designed as a platform for cooperation and mutual learning, while the Pan-European Investment Platform for Housing is prepared to better coordinate existing funding instruments without creating new EU funds.
In short
The European Housing Alliance will function as a cooperation platform between national, regional, and local governments, EU institutions, and housing sector actors. The initiative aims to implement on the ground the European Plan for Affordable Housing, presented by the Commission to address the crisis affecting millions of Europeans. The Commission is also developing the Pan-European Investment Platform for Housing, which will better coordinate existing funding without creating new EU funds. Dan Jørgensen announced that he will propose an Affordable Housing Act, with tools for local authorities in areas affected by short-term rental pressures. The Commission is also preparing a simplification package for housing, to accelerate the supply of housing and reduce administrative delays.
The European Commission has launched the European Housing Alliance, a platform through which member states, regions, cities, European institutions, and housing sector actors will be able to cooperate for solutions to the housing crisis in the European Union.
The European Commissioner for Energy and Housing, Dan Jørgensen, invites member states, regions, cities, and stakeholders from the EU to join the alliance. The initiative is presented by the Commission as the first European alliance dedicated to housing and as a tool for the concrete implementation of the European Plan for Affordable Housing.
The alliance will operate as a common platform for national, regional, and local governments, EU institutions, and relevant actors, including representatives of youth, tenants, and homeowners. The goal is cooperation on solutions, sharing best practices, and connecting public policy decisions to realities on the ground.
"In a moment when the housing crisis affects communities across Europe, collaboration is more important than ever. The launch of the European Housing Alliance marks an essential step in building a common response to this fundamental challenge. By bringing together experts in housing, cities, regions, local leaders, and our member states, we create a common platform to shape the future of housing in Europe together. Through this alliance, we can transform shared knowledge into concrete action and contribute to ensuring access to affordable and sustainable housing for all in Europe," said Dan Jørgensen.
The alliance will operate based on the respect for the principle of subsidiarity and the advantages of multi-level governance. The Commission mentions open and inclusive participation, transparent working methods, flexibility and adaptability, as well as combining political cooperation with expert-level collaboration.
The launch took place in the context of the informal ministerial meeting on housing in Nicosia, Cyprus. The Cypriot Minister of Interior, Constantinos Ioannou, stated that housing is "a problem at the center of human dignity, social cohesion, and a fundamental pillar of the European social model."
According to Ioannou, access to adequate, affordable, and sustainable housing is not only a social priority but also a condition for economic growth and mobility, especially for young people and workers. He stated that rising pressures, limited supply, higher construction costs, and demographic pressures make access to housing increasingly difficult not only for vulnerable groups but also for the middle class.
Dan Jørgensen said at the same press conference that housing prices in the EU have increased by over 60% since 2013, while average rents have risen by about 20%, with larger increases in urban areas.
"The housing crisis is hitting many of our member states across the Union, and this must be the moment for political leadership, action, and unity," said the commissioner.
The Commission links the alliance to a broader package of housing measures. Jørgensen stated that the European Plan for Affordable Housing is the "compass" for the Commission in addressing the crisis and that the European Executive is now moving to concrete initiatives.
On the investment side, the commissioner said that an additional 10 billion euros will be mobilized from the EU budget this year and next year, and partner financial institutions have committed to mobilizing 375 billion euros by 2029.
The Commission is also developing the Pan-European Investment Platform for Housing. According to information published by the European Executive, the platform will not create new EU funding but will seek better coordination of existing funding instruments at the European, national, and local levels. The Commission states that the platform will support more efficient use of available resources, including through blended financing and better-prepared projects for mobilizing large-scale investments.
Jørgensen also announced a simplification package for housing, which will be presented next year and should help increase supply. He stated that work has already begun and that a call for contributions from stakeholders will soon be launched.
Simplifying procedures was one of the themes of the ministerial meeting. Ioannou stated that complex administrative procedures continue to delay new developments and renovations, but clarified that simplification does not mean deregulation.
"Our goal is to achieve the right balance between efficiency, environmental sustainability, accessibility, and social cohesion," said the Cypriot minister.
Jørgensen announced that the next major step will be a proposal regarding short-term rentals, which he described as a pressing issue in urban and tourist areas. He stated that the number of short-term rentals has nearly doubled between 2018 and 2024, and in some neighborhoods and tourist destinations, they can account for up to 20% of the housing stock.
"What we see is that sometimes these platforms have simply turned into money-making machines, pushing local populations out of the housing market and driving up prices in certain areas," said the commissioner.
He stated that he will soon present the Affordable Housing Act, which would provide local public authorities with a range of possible tools to limit the negative effects of short-term rentals in areas under housing pressure. The act would also include measures through which public authorities can stimulate affordable housing in these areas.
"In Europe, we want a housing policy that puts people before profit, social inclusion and well-being before financial gain," said Jørgensen.
The commissioner insisted that Brussels cannot solve the housing crisis alone. He stated that mobilization is needed at all levels of governance, which is why the Commission is launching the call to join the European Housing Alliance.
"I want experts in housing from member states, regions, cities, stakeholders, and local communities not only to be heard but to shape the future of housing together," said Jørgensen.
In response to a question about attracting private investments in affordable housing, Jørgensen said that the EU has already changed the rules regarding state aid for social housing, so that member states can support housing in a broader sense, including affordable housing.
He stated that the pan-European investment platform will allow different market actors to work together and mobilize the necessary funding. He added that simplification is important because too many new housing projects or renovations are prolonged due to bureaucracy and complex rules.
Ioannou stated that member states need to make investments in affordable housing more attractive to the private sector. He specified that the role of the Commission, through the European Plan for Affordable Housing, is to support the efforts of member states, but the responsibility for concrete plans remains at the national level.
The Cypriot minister stated that simplifying authorization can reduce administrative costs and make investments more attractive. He cited the digitalization of procedures as an example discussed at the meeting.
The housing crisis has become an increasingly important issue on the European agenda, given that rising prices, rental pressures, construction costs, lack of supply, and demographic changes affect access to housing in many member states.
The European Commission has presented the European Plan for Affordable Housing to address this crisis through a combination of investments, cooperation between levels of governance, simplification, more efficient use of existing funding, and sharing best practices.
The European Housing Alliance is designed as a platform for cooperation and mutual learning, while the Pan-European Investment Platform for Housing is prepared to better coordinate existing funding instruments without creating new EU funds.
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