Commission president Ursula von der Leyen has promised MEPs a new EU commissioner with a mandate on housing, an area of limited competence for the bloc. This comes in response to a housing crisis in the EU, with average rents increasing by almost 23% and house prices by nearly 48% between 2010 and the end of 2023. Von der Leyen highlighted the urgency of addressing the lack of affordable housing and rising cost of living in her policy guidelines for the next European Commission, proposing the first-ever European affordable housing plan and a commissioner responsible for the policy area. Socialists, the left, and civil society organizations have been pushing for more action at the EU level to tackle this crisis, calling for a commissioner or vice-president dedicated to promoting dialogue and investment in housing.
There is a significant investment gap in social and affordable housing in the EU, and member states can only use public funds to target the most vulnerable groups. Socialists advocate for the recognition of social and affordable housing as a service of general economic interest beyond disadvantaged groups or social groups with fewer opportunities. Housing has not been a priority in EU-level discussions, with housing ministers only resuming joint discussions on European challenges in this policy area in 2022 after a decade of stalemate. However, there is potential for the EU to influence housing through financial regulation, competition law, energy efficiency, planning standards, cohesion policy, climate action, urban and social policies.
Von der Leyen’s policy plans include a review of state aid rules to give member states more flexibility to support housing, as well as a proposal to allow member states to double planned cohesion policy investment in affordable housing. The European Investment Bank will collaborate on a pan-European investment platform for affordable and sustainable housing to attract more private and public investment. Additionally, the Social Climate Fund aims to mobilize funding to support vulnerable groups in affordable housing initiatives. While some of the Social Democrats’ key proposals on housing were not included in the president’s policy program, such as binding targets to eliminate homelessness by 2029 and regulation of short-term rentals, efforts are being made to address the housing crisis.
On average in the EU, 19.6% of people’s disposable income was spent on housing in 2022, but for those at risk of poverty, housing costs accounted for almost 38% of their disposable income. The bloc could provide guidelines and a framework for urban centers to build on local initiatives that have been successful in tackling the housing crisis. Measures such as regulating short-term rentals like Airbnb could help address rising housing and rental prices that are causing citizens to move out of urban centers. Tackling homelessness, which affects an estimated 890,000 people across the EU, is another critical issue that requires attention, although there is currently no concrete proposal on the political program to address it.
MEP Li Andersson highlighted the importance of sharing good practices in addressing housing issues, citing countries like Finland that have had success in combating homelessness. She emphasized that social problems such as homelessness can be solved with the right strategies in place. The appointment of a housing commissioner by von der Leyen has sparked hope among advocates for the fight against homelessness to be included in the new commissioner’s responsibilities. Member states have until August 30 to nominate candidates for the college of commissioners for the next five-year mandate, after which von der Leyen will decide on the portfolio allocations and powers of each commissioner.
