Nearly a decade after EU leaders recognised access to decent housing as a basic right, European Commission President Ursula von der Leyen said it is now time for Europe to deliver. “A home is not just four walls and a roof: it is safety, warmth, a place for family and friends,” she told Members of the European Parliament in her State of the Union 2025 address. “But for too many Europeans today, home has become a source of anxiety.”
Finding affordable housing has become one of Europe’s greatest challenges. According to Eurostat data (2025), since 2015, house prices have risen on average by 53% and renting prices have risen by 28% since 2010 by 28 %. Many households now spend more than 40% of their disposable income on housing, and young people are leaving home later than ever — at an average age of 26. At the same time, residential building permits dropped by more than 21% since 2021.
“This is more than a housing crisis,” von der Leyen said. “It is a social crisis.”
Making housing more affordable has become a central priority of her second term. To this end, she appointed Denmark’s Dan Jørgensen as the EU’s first Commissioner for Housing. By 2026, the European Commission aims to present the European Affordable Housing Plan, which will include measures to speed up construction, renovate existing buildings, and revise state-aid rules to allow greater public support for housing.
In March 2025, the European Commission and the European Investment Bank (EIB) announced investments of around €10 billion over the next two years to support affordable and sustainable housing across Europe.
Von der Leyen also announced a new legislative initiative on short-term rentals. At the same time, it will become easier to build new housing and student residences. Finally, she announced plans to convene the first European Housing Summit.
Until 17 October 2025, a public consultation remains open, inviting citizens, local authorities, and stakeholders to share their views and proposals on how to address the housing crisis.
Meanwhile, the European Parliament has established a Special Committee on the Housing Crisis (HOUS) — a temporary, issue-specific body tasked with analysing the root causes of Europe’s housing shortage and proposing EU-level solutions. In September 2025, Parliament adopted new rules enabling EU cohesion and social funds to support affordable housing. MEPs also called on Member States to at least double their national funding for affordable homes and described Europe’s housing crisis as “severe.”