Brussels is preparing to unveil proposals next month to address Europe‘s escalating housing crisis,signaling a potential shift in the EU’s traditionally hands-off approach to housing policy. The move comes as the crisis expands beyond vulnerable populations to encompass middle-income earners, prompting calls for “fresh eyes” on the issue, according to Danish Social Democrat Commissioner Johannes Jørgensen.
The European Commission is considering revisions to state aid rules to encourage greater public investment in housing alongside private capital. Mayors across Europe, represented by Eurocities, have jointly lobbied for government spending on affordable housing to be excluded from EU debt and deficit calculations.
The crisis stems from multiple factors, including urban population growth, increasing numbers of single-person households, and the lingering effects of the 2008 financial crash and the Covid-19 pandemic. Rising construction costs are also disincentivizing private developers. A key driver, however, is the financialization of the property market, prioritizing profit over housing as an essential public good.
Currently, almost one in ten EU citizens spend 40% or more of their disposable income on housing. The Guardian has documented the breadth of the crisis in a recent series of reports. Recognizing the social and political risks posed by widespread housing anxiety, the Commission is urged to adopt ambitious and radical proposals.
