EPP ministers, mayors, and MEPs gathered at the EPP Political Assembly for a high-level debate on Europe’s worsening housing crisis, stressing that rising costs, labour shortages, declining construction investment, and persistent regulatory obstacles are placing heavy pressure on citizens across Europe. Participants highlighted the need for multilevel action and exchange of best practices to boost supply, revitalise cities, and stabilise the housing market. These were the central points raised during the debate “The Europe-Wide Housing Challenge: Multilevel EPP Answers”, chaired by Dolors Montserrat.
Hanna Zdanowska, Mayor of Łódź described the transformation of Łódź, where many municipal buildings had not been renovated since the time they were built and lacked essential infrastructure. “We realised that we had to begin revitalising the centre. We had to start renovating the municipal buildings,” she said. Investment followed rapidly: “As soon as we renewed the streets, attractive buildings and private investment immediately began to appear.”
Zdanowska said that while Łódź was an academic city, young people were leaving after completing their studies. Large-scale revitalisation stopped the outflow of young people: "The city needed both jobs and housing. We thus adopted a two-track strategy: the first to attract investors and new industries, the second was to invest in housing."
MEP Borja Giménez Larraz presented the structural drivers behind soaring housing costs, noting that in many countries citizens “have to pay more than 30–40% of their income each month” on housing. He underlined that “demand keeps rising, but the housing supply simply does not respond,” due to migration flows, changes in family structures, and population shifts into urban areas.
He recalled that construction licences decreased 20% during the last five years despite high demand, and asked: “Why is the private sector not interested in investing in construction when there is such high demand? This is what the European Parliament's report aims to answer” Borja insisted that while housing is not a European competence, “we must define a common European approach, a plan capable of supporting national and regional efforts, identifying shared challenges, and promoting solutions that work across borders.”
Joining online, Swedish Minister for Infrastructure and Housing Andreas Carlson stressed the importance of reducing regulatory burdens: “The most important role for the EPP in this crucial time is to share knowledge, share best practice, and see what we can do to reduce costs to make affordable housing a reality.” He highlighted major Swedish reforms, including:
- “Reforms to simplify building regulations, shorten lead times in the planning and building process, and include opportunities for low ownership.”
- “A new regulatory framework for building permits — the biggest deregulation for decades in Sweden.”
- Easing building requirements for student housing.
- Relaxing protection rules to free up buildable land.
Carlson stated that there can be no one size fits all and that with 27 housing markets one had to take note of the different local realities. He stressed the important role that local and regional authorities had to play in this sector .
Micheál Carrigy, Chair of the Oireachtas Committee on Housing, Local Government and Heritage highlighted Ireland's challenges with vacant or derelict houses throughout the country outlining measures introduced to bring them back into use. “We’ve introduced numerous grant schemes… €50,000 or €70,000 whether it’s derelict or vacant,” he said. Ireland has also launched a Living City Initiative offering tax breaks in major cities, and introduced “a new derelict tax on properties.” Ireland is also empowering local authorities to use compulsory purchase orders: “We’ve given powers to our local authorities to enact compulsory purchase orders to purchase those properties where they’re not being done up.”
Chairing the session, Dolors Montserrat argued that the EPP must address the root causes of the crisis: Some governments from the left, she noted, “focus on subsidies instead of solving the causes… they make people more dependent on the state, and they push prices even higher.” She reaffirmed the EPP’s values: “We want citizens to hold their own keys. Housing is about dignity, freedom and identity, this is not only an economic task; it is a democratic responsibility.”
Later this week the EPP-CoR will hold a local dialogue on housing. He aim is to deepen cooperation between mayors and local/regional councillors through the setting up of a new EPP Network on Housing, which will serve as a platform for exchanging best practices, coordinating policy work and strengthening the party’s leadership on housing across Europe.