In response to the European Union’s housing crisis, Members of the European Parliament (MEPs) have adopted a report advocating for stronger, targeted measures to address the urgent need for affordable housing across the EU, receiving 32 votes in favour, four against, and no abstentions.
Between 2015 and 2023, the average house price in the EU increased by 48%, mainly due to rising construction costs, higher mortgage rates, and a limited housing supply. By 2023, more than 10% of urban households and 7% of rural households were spending over 40% of their disposable income on housing, with approximately 1.3 million Europeans experiencing homelessness in 2024.
During the 2021–2027 budget cycle, €7.5 billion was allocated from cohesion funds to support housing, with a focus on energy efficiency and renewable energy initiatives. The report proposes doubling this funding and emphasises the need for public, non-profit, and cooperative housing objectives within the cohesion policy framework.
“We are in the middle of a severe housing crisis that impacts everyone, but most of all young people and socially vulnerable groups. We are setting out a way forward through cohesion policy to facilitate an EU housing public stock, which needs to be more broadly funded with an ambitious and robust cohesion policy,” rapporteur Marcos Ros Sempere (S&D, Spain) said. Â
MEPs call for a balanced approach that supports both new housing developments and energy efficiency improvements. They recommend fostering partnerships with local and regional authorities and avoiding centralisation, recognising the varied needs across EU regions. The report also urges the establishment of standard state aid schemes to expedite housing support measures. It proposes dedicated investment lines through the European Investment Bank for housing construction and renovation.
Furthermore, MEPs highlight the importance of protecting tenant rights and ensuring that individuals are not displaced from their homes due to housing pressures. Targeted actions to address the root causes of homelessness, such as promoting a “housing first” model, are also recommended. Robust funding should be allocated in the next EU budget to combat homelessness, inadequate housing, and energy poverty.
“These investments in housing also need to follow standards on sustainability and energy efficiency. We need to combat homelessness and ensure that people have a right to stay in urban and rural areas under pressure,” the rapporteur added.
