European regions and cities welcome the first EU plan for affordable housing, but warn that without money and local autonomy, the impact will be limited.

European regions and cities welcome the launch of the first EU plan for affordable housing, but warn that without consistent investments and more local autonomy, the initiative risks remaining limited in impact.

Brussels, December 16, 2025 – European regions and cities have welcomed the publication of the first European Plan for affordable housing, presented by the European Commission, but warn that the initiative will have a real impact only if it is supported by consistent long-term investments and a stronger role for local and regional authorities in the future EU budget.

In short The European Committee of the Regions welcomes the first EU Plan for affordable housing, presented by the European Commission.

Local authorities warn that the plan is just a first step and depends on long-term investments.

The CoR calls for more flexible state aid rules and greater mobilization of EU funds.

Among the supported measures are a pan-European investment platform, regulation of short-term rentals, and the expansion of the "Housing First" approach.

The real stake is the future EU budget post-2027 and the role assigned to regions and cities.

The message comes from the European Committee of the Regions, which considers the plan an important step after years of political pressure, but emphasizes that the current housing crisis cannot be solved through a limited set of measures or an exclusively centralized approach. Housing prices have risen across the Union, but the European average hides major differences between regions, generated by factors such as real estate speculation, mass tourism pressure, or economic concentration in large urban centers.

The President of the Committee of the Regions, Kata Tüttő, welcomed the historic nature of the initiative, emphasizing that it is the first time the EU addresses affordable housing as a matter of European interest. At the same time, she warned that the success of the plan will depend on the Union's ability to adapt state aid rules and to mobilize EU funds more effectively in support of local authorities, which are on the front lines of managing the crisis.

The Committee supports a series of concrete measures, including the creation of a pan-European investment platform for housing, the expansion of the "Housing First" approach in combating homelessness, and more effective regulation of short-term rentals, considered a major distortion factor in local markets. According to regional leaders, these tools can produce quick results only if they are adapted to local realities and not uniformly imposed from the European level.

The rapporteur of the Committee of the Regions for the housing plan, the mayor of Barcelona Jaume Collboni, described the initiative as a turning point in recognizing the housing crisis at the European level. He emphasized that housing has become one of the main sources of social inequality in the EU and called for future European legislation in the field to strengthen the protection of the right to housing, especially in cities affected by severe real estate pressure.

A similar message came from local authorities in smaller and medium-sized cities. Andres Jaadla, a local councilor in Rakvere, Estonia, pointed out that innovative housing solutions already exist in numerous European communities but are applied in a fragmented manner. In the absence of a European framework for exchanging best practices, municipalities are forced to "reinvent the wheel," instead of learning from one another. He called for a true European housing agenda, with dedicated platforms and periodic meetings to accelerate the replication of effective solutions.

Beyond the positive reactions, the central political message of the Committee of the Regions is oriented towards the future multiannual budget of the EU. Local leaders warn that without a post-2027 financial framework that allows regions and cities to design and implement policies tailored to their own needs, the plan risks remaining more of a statement of intent. In this regard, housing is already one of the priorities of the Committee of the Regions for the 2025–2030 mandate.

The Commission's plan comes against the backdrop of increasing political attention at the European level to the housing crisis. In October, the President of the Committee of the Regions discussed the issue with the President of the European Council, António Costa, ahead of the first European Council that explicitly included housing on its agenda. Starting in 2026, local and regional authorities will actively contribute to the implementation and evaluation of European initiatives in this area, based on the direct experience of the communities they represent.

https://2eu.brussels/ro/stiri/regiunile-si-orasele-europene-saluta-primul-plan-ue-pentru-locuinte-accesibile-dar-avertizeaza-ca-fara-bani-si-autonomie-locala-impactul-va-fi-limitat