Brussels has announced the launch of the European Union’s first-ever plan to provide affordable housing. The document, already dubbed the ‘roadmap for change,’ aims to ease access to housing for young people, low-income families, and those who have found themselves homeless. The focus is not only on new investments but also on revising the rules of the real estate market, tackling vacant apartments, and regulating short-term rentals.
European officials have announced plans to mobilize additional financial resources to support housing construction and renovation. More than €43 billion has already been allocated for this purpose, but the amount is set to increase in the coming years thanks to new tools, including the Cohesion Fund and the European Investment Bank. The plan calls for a joint effort among national and regional banks, as well as the involvement of private investors, to create a unified pan-European platform for investing in affordable housing.
Finance and investment
Starting in 2026, Europe will launch a new investment platform that combines public and private funds to support affordable housing projects. In the next two years, EU countries will be able to allocate an additional €10 billion from cohesion funds to develop the housing sector. These measures are expected not only to enable the construction of new homes but also to bring vacant apartments—currently standing empty—back into use.
Energy and Housing Commissioner Dan Jorgensen stressed that the European Union needs not speculators, but responsible investors willing to offer quality housing at fair prices. A comprehensive analysis of price trends and speculation in the real estate market is scheduled for next year, with the goal of developing concrete measures to stabilize the situation.
Vacant apartments
One of the key objectives is to bring vacant apartments back onto the market. According to the European Commission, around 20% of the housing stock in Europe is currently unused. While thousands are searching for a place to live, millions of square meters stand empty. The authorities plan to incentivize renovation and repairs of these properties to make them livable again. Special attention is being paid to ensuring that not a single square meter of housing goes to waste.
Solving this issue largely depends on national governments, but the European Union is ready to offer support and provide tools for the effective use of the existing housing stock. Plans include the introduction of new standards and digital solutions to streamline approval processes and reduce the administrative burden on developers.
Short-term rentals
Another pressing issue is the regulation of short-term rentals, including tourist apartments. In some cities, up to 20% of available housing is rented out on a daily basis, significantly reducing supply for local residents. The European Commission is preparing a new legislative package that would allow local authorities to identify areas with high market pressure and introduce measures to restrict short-term rentals.
This is not about a total ban, but authorities will be given tools to balance the interests of tourists and residents. The new rules aim to bring some apartments back to the long-term market and make housing more affordable for those who want to live and work in their own city.
Workforce and Innovation
Europe’s construction sector is facing a severe shortage of skilled workers. To address this, the European Union is launching a large-scale training program: by 2030, up to 3 million specialists are expected to be trained for the construction industry each year. In addition, regulations will be simplified and digital tools introduced to speed up project approvals and reduce bureaucratic hurdles.
According to estimates from Brussels, at least 650,000 new apartments will need to be built annually over the next decade to meet housing demand. This is an ambitious goal that requires not only funding, but also new approaches to organizing construction processes and allocating resources.
Social Groups
The new plan places special emphasis on young people and those left without housing. Separate targets and special support programs will be established for these groups. The European Commission stresses that access to decent housing is not only an economic issue, but also a social one, directly affecting the quality of life of millions of Europeans.
During the discussions in the European Parliament, representatives from various political groups put forward their proposals to improve the situation. Some called for reducing bureaucracy and tax burdens, while others demanded stronger protections for property owners and investors. There were also calls to avoid demonizing short-term rentals and instead seek a balance between the interests of all market participants.
In case you didn’t know, the European Commission is the executive body of the European Union, responsible for developing and implementing EU-wide policies, including those related to housing and urban development. Commissioner Dan Jorgensen is one of the key architects of the new EU housing strategy. His team coordinates efforts with national governments, banks, and the construction sector to ensure affordable housing for all European residents.
