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EU Housing Plan: Tackling Crisis, Affordability & Investment Gaps | EESC Update

by Ahmed Hassan - World News Editor

Brussels, Belgium – The European Commission’s recently unveiled European Affordable Housing Plan is gaining momentum, with the European Economic and Social Committee (EESC) playing a key role in galvanizing stakeholders and charting a course toward addressing the continent’s escalating housing crisis. A meeting convened by the EESC in December brought together representatives from across Europe to assess the situation and explore viable solutions, highlighting the multifaceted nature of the problem and the urgent need for coordinated action.

The crisis, as outlined by EESC President Séamus Boland, extends beyond mere affordability and availability. “Housing is first and foremost a social issue,” Boland stated, “but it is no longer only that. It is an economic issue. A demographic issue. A competitiveness issue.” This framing underscores the broad implications of the housing shortage, impacting not only individual citizens but also the economic health and social fabric of European nations.

The scale of the problem is stark. Boland pointed to instances where house prices and rents have more than doubled in some Member States, forcing young Europeans to delay establishing independent lives. He further highlighted the human cost, noting that an estimated 1.28 million people across Europe are experiencing homelessness, including nearly 10,000 in Brussels alone – a particularly poignant statistic given the city’s role as the symbolic heart of the European project.

The European Commission, through Commissioner for Energy and Housing Dan Jørgensen, has acknowledged the EESC’s contribution to shaping the Affordable Housing Plan. Jørgensen specifically thanked the committee for its September 2025 opinion, “For a European Affordable Housing Plan – the contribution of civil society,” which proved instrumental in the plan’s development. “Now that we have our final plan, we must put it into action,” Jørgensen emphasized, calling for the harnessing of “all of the political tools and proposals” to support Member States, regions, and local authorities in delivering more affordable, sustainable, and quality housing.

The Commission’s immediate next steps include the swift delivery of the Affordable Housing Act, continued work on a housing simplification package aimed at reducing bureaucratic hurdles, a focus on securing adequate financing, and the launch of a pan-European Investment Platform later this year. Recognizing the particular vulnerability of young people and students from disadvantaged backgrounds, the Commission also intends to enhance support for these groups. The establishment of a housing alliance and the organization of a high-level housing summit are planned to foster greater cooperation among stakeholders.

The need for sustained political momentum was stressed by Matthew Baldwin, Deputy Director-General of the European Commission’s DG ENER, who asserted that housing must be a priority for Europe. This sentiment was echoed by Aodhán Ó Ríordáin, a Member of the European Parliament, who underscored the interconnectedness of housing and poverty, advocating for coordinated EU measures to address both issues simultaneously. “We need a strong, collective effort from all stakeholders to bring about real change,” Ó Ríordáin stated.

Innovative approaches to housing policy were also highlighted during the discussions. Michaela Kauer, Director of the Brussels office of the City of Vienna and coordinator of the EU Urban Agenda Housing Partnership, showcased Vienna’s successful “housing for the common good” model, emphasizing its benefits for both people and the planet. Kauer attributed Vienna’s success to strong political will and consistent stakeholder engagement, while also stressing the importance of addressing housing affordability through a gender lens, noting that “energy poverty clearly has a woman’s face.”

Tenant representation emerged as a crucial element in ensuring effective housing policies. Marie Linder, President of the International Union of Tenants, advocated for tools such as rent stabilization and protections for long-term rentals, emphasizing the importance of including tenants in decision-making processes. Chiara Martinelli, Director of Climate Action Network Europe, drew attention to the link between the housing emergency and energy poverty, calling for policies that align the Commission’s plans with broader EU priorities.

The EESC is preparing to present recommendations in March on addressing housing scarcity through affordable and sustainable policies. Rapporteur Thomas Kattnig emphasized the need for “proper policy responses and prioritisation of social housing.” Cillian Lohan, President of the EESC’s Civil Society Organisations’ Group, reaffirmed support for the European Affordable Housing Plan, while Sandra Parthie, President of the EESC Employers’ Group, highlighted the economic dimensions of the crisis.

Parthie warned that high housing costs are driving workers out of certain areas, creating employment barriers and exacerbating labor shortages. “Businesses are ready to be part of the solution, but construction costs, material shortages, lengthy permitting procedures and financing conditions are a challenge,” she stated. “We need more commitment from the EU and Member States.”

The European Affordable Housing Plan, represents a significant step towards tackling a complex and pressing issue. Its success will depend on the continued collaboration of stakeholders at all levels, a sustained commitment to political momentum, and the implementation of innovative and inclusive policies that prioritize the needs of all European citizens. The plan’s focus on boosting housing supply, mobilizing investment, providing immediate support, and protecting the most vulnerable segments of society signals a comprehensive approach to a crisis that demands urgent and sustained attention.

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