The European Affordable Housing Plan is the response of the European Union to a deepening housing crisis affecting millions of people across Europe. The sharp rise in purchase and rental prices, combined with insufficient supply and growing territorial inequalities, has made access to decent and affordable housing one of the main social and economic concerns in the Union. The plan is based on a clear premise: housing should not be understood solely as a market commodity, but as a fundamental right, a pillar of social cohesion, and a prerequisite for labour mobility, equal opportunities, and European competitiveness.
The overall objective of the plan is to increase the availability of affordable, sustainable, and quality housing across all Member States, supporting national, regional, and local authorities while coordinating public and private action at the European level. To achieve this, the European Commission proposes a structured approach built around four complementary pillars, combining immediate measures with long-term structural reforms.
The first pillar focuses on boosting housing supply by addressing bottlenecks that limit the construction sector’s capacity. The plan aims to enhance productivity and innovation in construction through the use of new materials, industrialised methods such as prefabrication and modular construction, and greater digitalisation. At the same time, it foresees an ambitious effort to simplify administrative procedures, with the goal of accelerating permits, reducing bureaucratic burdens, and shortening construction and renovation timelines, without compromising quality or environmental standards.
The second pillar seeks to mobilise public and private investment to close the financing gap in affordable housing. To this end, the Commission proposes the creation of a pan-European investment platform for affordable and sustainable housing, in cooperation with the European Investment Bank and other public and private financial institutions. In addition, the plan foresees a revision of State aid rules to facilitate and streamline public support for social and affordable housing projects, enabling faster and more effective responses by Member States.
The third pillar combines immediate support measures with structural reforms. In particular, the plan addresses the impact of short-term rentals in areas under significant housing pressure, where this phenomenon contributes to reducing residential supply and driving up prices. The Commission plans new legislative initiatives to help public authorities better manage these effects, ensuring a balance between housing access and tourism activity, while also tackling speculative practices in the most strained markets.
Finally, the fourth pillar focuses on protecting individuals and groups most affected by the housing crisis, such as low-income households, young people, essential workers, and other vulnerable groups. The plan highlights the need for housing policies to actively promote social inclusion, reduce the burden of housing costs on household income, and improve the energy efficiency of homes, with the dual aim of lowering bills and advancing the green transition.
Overall, the European Affordable Housing Plan establishes a coordinated European framework to support Member States in addressing one of the major social challenges of our time. Through increased supply, greater investment, structural reforms, and social protection, the plan seeks to ensure that access to affordable, sustainable, and quality housing once again becomes a reality for all people living in the European Union.
TIMELINE
- May – June 2025: Call for evidence.
- July – October 2025: Public consultation
- November 2025: The Housing Advisory Board presented recommendations to the Commission.
- December 2025: Presentation of the European Affordable Housing Plan. It was presented alongside a review of State aid rules for services of general interest to better support affordable housing, a European Strategy for Housing Construction, and a Communication and a Council Recommendation proposal on the New European Bauhaus. It will be complemented in 2026 with an Energy Package for Citizens.