European Commissioner Dan Jørgensen has called the EU’s housing shortage an "emergency," warning that rising prices and rents are locking young people out of the market. EU data show property values rose about 60% and rents over 20% in the past decade. New rules in the Affordable Housing Act aim to give local authorities legal clarity to curb short‑term holiday lets in areas under housing stress. Jørgensen said this must be combined with more building, renovation, funding and reduced red tape.
EU Commissioner Declares Housing Shortage an 'Emergency' as Prices Soar
Europe's housing crisis has become an 'emergency', Commissioner Jørgensen warns
European Commissioner for Housing Dan Jørgensen has warned that Europe’s housing shortage has reached an "emergency" level, telling Euronews that many young people across EU member states can no longer afford to buy or even rent a home. Brussels, he said, is treating the situation "extremely seriously."
Commission figures show property prices across the EU have risen by roughly 60% over the past decade, while average rents have climbed by more than 20% in the same period. Jørgensen described the human cost: "We see normal people with normal jobs unable to find a place to live, being crowded out of the cities where they serve as police officers, nurses and teachers and so on. So this is totally unacceptable, and we need to act."
The European Commission has introduced new rules under the Affordable Housing Act to give national and local authorities clearer legal grounds to limit short‑term holiday lets in areas identified as being under housing stress. While short‑term rentals account for about 1.2% of the EU's overall housing stock, they can represent up to 20% in some tourist hotspots — a shift that local residents say has removed long‑term homes from the market and pushed prices up.
Jørgensen argued the Commission's role is to provide legal clarity and support rather than to impose specific national policies: "It's about finding the balance. I've really felt a pressure to act on short‑term rentals, [...] but we shouldn't prescribe. We shouldn't force member states to do specific things." The new rules aim to give local governments "clarity and predictability" when regulating platforms such as Airbnb in areas where there is clear evidence of severe housing pressure.
The Commissioner also warned of wider social and economic consequences: the crisis is making it harder for people to start families, find suitable jobs, or pursue necessary education. He acknowledged that curbing short‑term lets alone will not solve the problem: "We also need to do more to build more houses, to renovate more houses, to find new purposes for buildings that already exist so that they can become houses." He called for cutting red tape, mobilising funding and accelerating construction and renovation efforts across member states.
Legal disputes have previously stalled local attempts to rein in short‑term rentals, with operators challenging measures as incompatible with EU law. The Commission says the new framework is intended to reduce such legal uncertainty and empower local and national authorities to act where housing stress is demonstrable.
Jørgensen concluded that while the measures under the Affordable Housing Act are an important step, they must be part of a broader package — including increased building, renovation, funding and regulatory reform — to address the deepening housing emergency across Europe.
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