FEPS commentary on the EU Affordable Housing Plan

The announcement of the EU Affordable Housing Plan by Commissioner Dan Jørgensen is a historic milestone for the European Union. 

By László Andor, FEPS Secretary General, and François Balate, Policy Analyst on Social.

Housing unaffordability has become a chronic problem with common causes. Aggravated by underinvestment and overtourism, rents and prices outpace incomes across Europe. Almost 10% of households spend over 40% of their income on housing, and more than 1,280,000 people are homeless, as recently highlighted in FEPS’ latest policy brief “Tackling the housing crisis in Europe“.

More than 70% of Europeans are calling for European action to improve affordability and stamp out speculation. Thanks to the intense work of social democrats at all levels of government, we now have a plan to turn a market commodity into a human right. 

The EU plan is built on four pillars, aiming to expand housing supply, mobilise investment, balance immediate needs with structural reforms, and support the most vulnerable.

Reforming state aid rules will allow local and regional authorities to reclaim their central role in controlling and expanding the housing stock. It will take away power from the market forces and real estate speculators, prioritising the general interest, and unlocking the potential of public investment.

Housing is not only a question of roof and walls, it is also a broader question of community and habitat, which allows all generations to live together. With a forthcoming regulation on short-term rentals, our urban centres will be accessible again to local inhabitants, putting a cap on touristification.

The plan will be key in supporting the EU’s objective of eradicating homelessness by 2030, and therefore, all the initiatives laid down are needed to make sure that no one has to sleep in the streets, especially the 400,000 children who are currently in this situation.

Addressing energy poverty is also crucial. Not only to lower people’s bills but also to deliver on the green transition and adapt our homes to the impact of the climate crisis.

Greater financial resources will be necessary for this plan to be turned into results; 300 billion euros, as called by the S&D group in the European Parliament. 10 billion euros are already foreseen via InvestEU.

The next Multiannual Financial Framework will need to be mobilised, notably through cohesion policy. The need to step up investment in housing is another reason why cohesion funds should not be allowed to shrink; the MFF would also need to be boosted altogether.

Delivering affordable and sustainable housing is paramount to improving people’s quality of life. This will confirm that the European Union can be a project of solidarity and well-being, delivering public goods for all. Now, the EU has an opportunity with the EU Affordable Housing Plan to demonstrate that it is part of the solution that citizens are waiting for.

FEPS launched the policy brief “Tackling the housing crisis in Europe“ ahead of the EU Affordable Housing Plan at the European Parliament, with experts and members of the HOUS Committee, including Irene Tinagli MEP and Alicia Homs MEP.

Short on time? Get all the key information on the housing crisis in the handbook based on the policy brief!

Photo credits: European Commission, 2025