EU Unveils First-Ever Affordable Housing Plan To Tackle Soaring Prices And Short-Term Lets

The European Commission will publish its first-ever, bloc-wide affordable housing plan on Tuesday, combining measures to boost construction, speed up permitting and rein in short-term rentals in tourist hotspots.

Scope Of The Problem

Eurostat data show that over the past 15 years house prices across the 27-member EU have jumped by about 60%, while rents have risen nearly 30%. Almost 1.3 million people are currently recorded as homeless in the bloc — a population larger than the city of Brussels.

“For too many Europeans today, home has become a source of anxiety,” European Commission President Ursula von der Leyen said in a recent address on the issue.

Why The EU Is Acting

Housing policy is mainly the responsibility of national and local governments, not Brussels. Still, growing political pressure — especially from left-leaning parties, local officials and civic groups — has pushed the Commission to propose EU-level measures because the crisis affects every member state and extends well beyond major city centres.

Key Measures Under Consideration

According to a draft seen by AFP, the plan combines regulatory and supply-side measures:

• Regulating Short-Term Rentals: New limits on platforms such as Airbnb in tourist hotspots, including possible caps on the number of nights a property can be let short-term. Spain has already fined Airbnb for advertising some banned listings.
• Boosting Construction: The EU will promote housing supply through measures to mobilise public and private investment, estimated to channel up to €375 billion into the sector by 2029.
• Labour And Permitting: Plans include large-scale apprenticeship programmes to ease labour shortages in construction and targeted relaxation of certain environmental and planning rules to speed up building permits, while maintaining safeguards.
• No Binding Quotas Or Price Caps: The Commission says it will not force member states to build a fixed number of homes or impose uniform national price caps.

Scale Of The Challenge

The Commission estimates the EU needs more than two million new homes each year to meet demand and reduce pressure on prices and rents. Officials say the proposals have attracted stronger interest and political traction than expected.

What Happens Next? The Commission will present the plan publicly on Tuesday, after which member states, the European Parliament and stakeholders will debate specifics and potential legislative steps. Any binding measures would have to respect member-state competences and likely combine EU guidance with national and local implementation.

Sources: European Commission statements, Eurostat data, draft proposals reported to AFP.