The European Commission has unveiled the first comprehensive European Affordable Housing Plan, aimed at tackling the continent’s growing housing challenges. The initiative seeks to ensure access to sustainable, high-quality homes at prices that Europeans can afford.

Over the past decade, house prices have risen by more than 60 percent on average, while rents have climbed over 20 percent. This surge has made it increasingly difficult for millions of citizens to secure adequate housing, impacting job mobility, access to education, and the ability to start a family. The housing crisis is also seen as a threat to both the EU’s economic competitiveness and social cohesion.

The plan focuses on increasing the overall supply of housing, encouraging investment and structural reforms, addressing problematic short-term rentals in certain areas, and providing targeted support for those most affected by high costs.

A key element of the strategy is enhancing the construction and renovation sectors to be more efficient and innovative, helping to close the gap between housing demand and supply. As part of this, the Commission has proposed a European Housing Strategy. The package also features a Council Communication and Recommendation on a New European Bauhaus, designed to promote sustainable, affordable, and high-quality construction projects, while supporting clean transition, innovation, and bioeconomy objectives in the built environment.