The European Economic and Social Committee (EESC) has adopted an opinion during its September plenary session, highlighting the important role of modern construction methods in addressing the housing crisis. The EESC asserts that while these methods can reduce housing costs and increase supply, their success depends on harmoniously integrating innovation, quality, and respect for workers’ rights and public interests.
This perspective suggests that the EU may be on the brink of mitigating its housing challenges by implementing modern construction practices. By adopting these methods, the EU can lower construction costs, speed up project timelines, and reduce carbon footprints while advancing a circular economy in the construction sector.
The EESC’s opinion, titled “Making Housing Affordable – Increasing Modern Methods of Construction and Lowering Costs,” presents a comprehensive framework for enhancing the availability of repurposed, renovated, and new housing. Prepared by John Comer and Thomas Kattnig at the request of the Irish Presidency of the Council of the European Union, the opinion offers valuable guidance for stakeholders applying modern construction techniques.
“Modern methods of construction can become a key pillar of affordable housing, but only if innovation, quality, workers’ rights and public interest objectives advance together,” said Comer. “Modern methods of construction must not be seen as merely a technological or market-driven issue, but must be part of a broader social, labour market, affordability and industrial policy strategy,” added Kattnig.
Fighting fragmentation
The construction sector faces low productivity growth and fragmented supply chains. Modern construction methods can address these challenges through innovative off-site manufacturing and efficient on-site techniques. Approaches like modular and prefabricated construction can reduce costs and timelines while improving structural quality and productivity. These methods are also more environmentally friendly, supporting the United Nations Sustainable Development Goals (SDGs).
To ensure that buildings constructed with these methods maintain long-term value, it is essential to develop industrial capacity. The EESC emphasises the need for the EU to invest in enhancing manufacturing capabilities for prefabrication and off-site construction systems.
The Committee stresses that Member States, the Commission, the Housing Alliance, and all stakeholders must work together to promote standardisation, eliminate fragmented regulations, and ensure certification and monitoring of modern construction methods. While each Member State has primary responsibility for housing, the EESC believes the Commission should support national housing plans and encourage cross-border cooperation. To drive innovation in construction, the EU needs a central funding mechanism to help SMEs invest in digitalisation, benefiting not only construction but also labour rights, job quality, and consumer interests.
Addressing the housing crisis is a top priority
House prices in the EU have increased by over 60.5% since 2013, and rents have risen by 28.8% from 2010 to 2025, resulting in an average housing cost burden rate of 8.2% in 2024. High inflation and stagnant wages have lowered disposable incomes, disproportionately affecting vulnerable groups, women, and young people.
Additionally, a decline in new housing has increased pressure on both the purchase and rental markets. Factors such as the COVID-19 pandemic, the war in Ukraine, rising energy prices, and higher material costs have further intensified the crisis. Mortgage interest rates have doubled, and the number of building permits issued in the EU fell by 25% between 2021 and 2024.
EESC continues to push the EU institutions
The EESC has been advocating for EU institutions to address the housing emergency by adopting several key opinions. In September 2025, it urged the European Commission to create an action plan to uphold the right to housing.
Following a presentation in December 2025, the EESC adopted an opinion in March 2026 on “Tackling Housing Scarcity,” calling for more ambitious measures to address the structural housing crisis. In July 2026, it emphasised the need for the Commission to quickly implement initiatives from the EU Strategy for Housing Construction to enable affordable and sustainable housing.
The EESC is currently reviewing the Affordable Housing Act unveiled by the European Commission on September 9, 2026, with an opinion expected in December 2026.
