In a debate with Commissioner Jørgensen, local leaders call for a European broader approach to affordable housing in order to boost public investment.
As the European Commission prepares to unveil its European Affordable Housing Plan, members of the Committee of the Regions (CoR) called for a more robust and coordinated EU response to Europe’s escalating housing crisis in a debate with Dan Jørgensen, Commissioner for Energy and Housing, on 20 February. They called for a substantial increase in investment in social and affordable housing, stressing that funding through the Multi-Annual Financial Framework (MFF) and other EU funds is needed to address this crisis.
Europe faces a severe housing crisis, with over 10.6% of urban residents and some 6.2% of rural residents struggling with excessive housing costs and more than 1.2 million people experiencing homelessness. Addressing this issue requires urgent action and a substantial increase in investment in social and affordable housing, estimated at €270 billion annually.
During the debate, CoR members stressed that ensuring adequate funding through the MFF and other EU mechanisms will be essential to tackle this challenge effectively. Housing must become a strategic priority in the next MFF, with dedicated funding streams, loans, and a mix of public and private investments. Members also asked the EU to propose a broad, EU-wide approach to affordable housing, which should be reflected in the current reform on the state-aid regulation relating to housing and lead to the revision of the Services of General Economic Interest Decision 2012. This decision will, they argued, be instrumental to efforts to unleash public investments into housing. Additional resources and financing tools are also necessary to help address the crisis and to ensure better access to equitable housing across the EU. They further highlighted the importance of enabling investments in the construction of new social and affordable housing units, in addition to energy efficiency renovations under cohesion policy and other relevant EU funding instruments. Recalling that reprogramming existing cohesion funds before 2027 will inevitably mean transferring funds away from other regional development goals, members emphasized the importance of additional EU funding and financing streams to support expanded EU priorities on housing.
María Guardiola, President of the Regional Government of Extremadura highlighted that housing has become one of the main concerns of European citizens, and especially young people. “The European Union must live up to these fair demands and lead the search for solutions. We are aware of this shared objective, which is an even greater challenge for territories that face demographic challenges,” she added.
The debate also emphasized the crucial role of local and regional authorities (LRAs) in ensuring access to affordable and sustainable housing. As LRAs are responsible for urban planning, land use, building regulations, and essential public services, they are at the forefront of addressing the housing crisis. Local leaders stressed that the involvement of local and regional authorities is essential in efforts to integrate housing projects into broader urban development strategies, including public infrastructure. CoR members reaffirmed the importance of an ‘active subsidiarity’ approach, ensuring that EU-level actions complement and support national, regional, and local efforts rather than imposing a one-size-fits-all solution. To that end, CoR members stressed that the European Affordable Housing Plan must be designed in close consultation with LRAs, ensuring that local and regional perspectives are fully integrated.
Hanna Zdanowska, Mayor of Łódź, highlighted the immense challenges her city faces in modernizing its large stock of municipal housing, with as many as 39,000 units, many of which have not been modernized for 200 years and are under heritage protection. “Regulations limit their modernization, increasing costs by two to three times. The costs of the planned area revitalization, covering 1,800 hectares, are enormous. We are currently finalizing work on 200 buildings, including 100 residential ones, with a total cost exceeding 500 million euros. We are connecting central heating, improving thermal efficiency, and expanding green areas,” she stated.
Zdanowska also emphasized the urgency of energy transition efforts in municipal housing. “In municipal buildings, we have over 10,000 old, non-ecological stoves that urgently need to be replaced. I plan to build a 40-hectare municipal photovoltaic farm that will meet as much as one-fifth of our city's energy demand,” she explained. She stressed the need for direct and dedicated EU and national funding to modernize existing housing stock and develop social housing. “Dear Commissioner, cities are determined to increase access to housing for low- and middle-income residents and to provide clean and affordable energy. However, we need greater cooperation with you and count on increased support so that together we can achieve our shared goals,” she urged.
Cristina Menéndez Álvarez, Director General for Cooperation with the State and the European Union, Autonomous Community of Madrid, Spain added another perspective, emphasizing the importance of property rights. “The occupancy of a dwelling is against the right to property protected by the Charter of Fundamental Rights of the EU. Under no circumstances should the EU allow that a citizen could be deprived of his right to enjoy his property freely,” she stated.
The debate underscored the necessity for a coordinated EU approach that involves local and regional authorities, ensuring that investment strategies and regulatory frameworks support affordable and sustainable housing development across Europe.