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When finding a place to live becomes a luxury, something is deeply wrong. To tackle Europe’s acute housing crisis, the EU is preparing its first plan for affordable housing. The EESC’s recent opinion on this issue – entitled For a European Affordable Housing Plan – the contribution of civil society – calls for a bold, investment-heavy and socially just approach. Its rapporteurs, John Comer and Thomas Kattnig, outline here the core ideas behind the opinion, which calls for a response that puts people, not markets, first.

By John Comer and Thomas Kattnig

Europe is facing one of the biggest social challenges of the decade: securing the fundamental right to adequate, accessible and affordable housing. Rising prices, increasing financialisation and growing social inequalities have led to a housing crisis that now affects more than 50 million citizens in the European Union. People with disabilities, single parents, older people and young people, who are increasingly being pushed out of cities, are particularly affected.

In response to these developments, the European Economic and Social Committee (EESC) has presented a comprehensive opinion at the request of the Danish presidency. It serves as a strategic guide for organised civil society ahead of the forthcoming publication of the European Commission’s Affordable Housing Plan.

Key challenges

We identify three structural risks that are exacerbating the crisis:

1. Speculation, and the financialisation of housing markets.

2. Insufficient long-term investment.

3. The growing gap between incomes and housing costs.

The EESC emphasises that the housing crisis is not a law of nature, but the result of political decisions. Decisive action at European, national and local level can reverse the trend. At the heart of this is the conviction that housing is not merely a commodity, but a basic social requirement for participation, economic stability and democratic trust.

Expectations for the European Plan for Affordable Housing

The opinion sets out clear expectations as regards the Commission’s plan. While responsibility for housing lies with the Member States, under the principle of subsidiarity, we stress that a European framework is necessary to address the complex challenges on the ground.

The EESC calls for the EU plan to include the following elements:

• A coherent European framework that supports local and national measures and strengthens cooperation.

• A robust investment strategy to close the estimated annual investment gap of EUR 270 billion in social and affordable housing. This requires both public and private investment.

• A strong role for the European Investment Bank, whose new pan-European platform for housing investment is intended to provide long-term, low-interest loans for social and non-profit providers.

• A pooling of existing EU funds into a specialised European instrument for affordable housing.

• An exemption from EU fiscal rules for public investment in social housing, as this must be considered strategic social infrastructure – comparable to investment in education or health.

We think the plan must be more than a signal – it must be a political turning point that matches the scale of the challenge.

Key proposals in the opinion

The opinion offers a comprehensive policy strategy to restore affordability, strengthen social justice and ensure long-term resilience.

One focus is on reforming EU State aid law. Social, non-profit and limited-profit housing serves the common good, is territorially bound and should not be considered a distortion of competition. We propose the model of non-profit and limited-profit housing associations as a European benchmark: adopting this model would involve cost-based rents, re-investment, long-term price stability and social diversity. At the same time, the overly narrow definition of social housing, focused solely on vulnerable groups, must be broadened, as the crisis has long since reached the middle class.

In order to counter speculation and financialisation, the Member States need a broad, legally compliant package of measures in line with subsidiarity: vacancy taxes, clear rules for short-term rental platforms, rent caps in tight markets and stricter transparency requirements for institutional property owners.

The opinion also calls for binding EU accessibility standards, improved support for accessible renovations and the expansion of housing assistance for people with disabilities. Accessible housing is a prerequisite for participation, self-determination and dignity.

In the fight against homelessness, the EESC clearly advocates ‘Housing First’ as the European standard.  Homelessness causes people to become alienated from society leading to major inequalities and deprivation in society. Finland has shown that stable housing conditions are a prerequisite for social integration and cost reduction in social and health care. Young people should receive special support through programmes such as ‘Housing First for Youth’.

Another key area is affordable land policy. Rising land prices have accounted for around 80% of property price increases since the 1950s. The EU should support land reserves for social housing, sustainable spatial planning and anti-speculation rules.

New technologies should also be used: digitalisation, AI, modular construction methods, harmonised standards and accelerated approval procedures can increase productivity in the construction industry, reduce costs and promote climate-friendly, energy-efficient construction methods – a decisive lever in the fight against energy poverty.

Finally, the EESC combines affordability with sustainability: future-oriented housing projects should include quotas for affordable, accessible and energy-efficient housing. EU initiatives such as the ‘Renovation Wave’ and the ‘New European Bauhaus’ provide an important framework for this.

Involvement of European stakeholders

A central part of the work is intensive dialogue with the most important European stakeholders. We held talks with the EU Commissioner for Housing, Dan Jørgensen, brought the views of civil society to the Commission’s Housing Task Force and presented the EESC’s position to the European Parliament’s Special Committee on Housing. The Danish presidency has also actively sought our expertise. These exchanges have enabled our opinion to have a direct influence on European policy-making.

A European promise

The forthcoming plan offers a historic opportunity. We want to emphasise that the EU is more than a market: it is the promise of a good, secure and inclusive life – and a home for all is the cornerstone of that promise.

The European Affordable Housing Advisory Board, an independent expert body advising the European Commission, has just published 75 recommendations for the upcoming European Affordable Housing Plan — the first-ever EU-level housing strategy aimed at addressing Europe’s acute housing crisis. Advisory Board expert Ivana Katurić has detailed the recommendations that align with the EESC’s calls to stop treating housing as a commodity and to recognise affordable, decent homes as a fundamental right.

By Ivana Katurić

On 20 November, the European Affordable Housing Advisory Board published a report detailing its affordable housing policy recommendations for the European Commission. The Housing Advisory Board was established in June 2025 as an independent group of experts to provide recommendations for the Commission to take into account when preparing the European Affordable Housing Plan, which is scheduled to be presented before the end of this year.

The European Economic and Social Committee has worked intensively on affordable and sustainable housing in recent years, and the Board’s 75 recommendations – in areas such as housing inclusion, spatial planning and land management, environmental sustainability of housing, investment principles and multi-level governance – echo many of the priorities set by the EESC in its opinions and public hearings.

Both the Advisory Board and the EESC are calling for a paradigm shift in European housing policy, treating housing as essential social and economic infrastructure rather than a commodity, and recognising decent, affordable and accessible housing as a fundamental right.

A major shared concern is the need to address market failure in the housing sector. The Advisory Board recommends tax, investment and land policy measures to curb financialisation and speculation and to prioritise homes as places to live, not vehicles for investment. Both bodies also highlight the critical importance of securing accessible, affordable housing for vulnerable groups, including people experiencing homelessness, young people, low-income earners, and especially people with disabilities. The Board’s recommendation of promoting the Housing First approach across all Member States to end homelessness and earmarking EU funds for this purpose mirrors long-standing advocacy by the EESC for robust action to be taken on this issue.

In its recommendations on financing the expansion of the affordable housing stock, the Housing Advisory Board also aligns with the EESC in the its call for targeted investment approaches to be devised. It promotes the cost-rental model as a core pillar of the future housing system, with new homes primarily developed and managed by public, cooperative and other limited‑profit housing providers. Financing would combine grants with long-term financing from the EIB and other international financial institutions. It should be designed to crowd in patient private capital, whereby affordability would be safeguarded by requirements for capped returns, obligatory reinvestment into renovation and new supply, and clear eligibility criteria for the selection of tenants, which should include vulnerable groups.

Both the Advisory Board and the EESC are calling for the removal of fiscal barriers that currently discourage public investment in affordable housing. The Advisory Board recommends reforms to State aid rules that broaden eligibility beyond the narrowest income groups. The report also calls for clarity on balance sheet classification under ESA 2010 rules, proposing that housing providers with independent operations and financial sustainability not be counted toward public debt – a reform that would reduce disincentives for Member States to invest in long-term affordable housing.

As the European Commission prepares to present its first-ever European Affordable Housing Plan, the convergence between the Board’s report and EESC positions demonstrates that the path forward must be based on rights, participation and coordinated action at every level, with the voices of civil society and those most affected at the forefront.

Ivana Katurić is director of Urbanex, an independent Croatian think tank, research and consultancy organisation dedicated to sustainable urban development and spatial policy. She is also an associate professor at University of Rijeka. Ivana is a member of the Housing Advisory Board, appointed in June 2025 to advise the Commission on the European Affordable Housing Plan. The Advisory Board has 15 qualified members who are experts in the various relevant areas.

Housing Europe’s latest report on the state of housing in the EU paints a bleak picture: demand for decent and adequately priced homes far exceeds the limited supply. Social housing waiting lists include millions of people in Europe’s major cities, with thousands living in homes that lack basic safety, comfort or hygiene. This is a crisis that cannot be addressed by market forces alone – it is a true test of political will and social commitment, writes Diana Yordanova, Communications Director at Housing Europe.

By Diana Yordanova

Demand for decent and adequately priced homes is surging, social housing waiting lists are swelling, and construction is stalling across the continent – this is the outcome of the State of Housing in Europe 2025 report, prepared by Housing Europe. Based in Brussels, the federation speaks on behalf of 43 000 public, cooperative and social housing providers that house people in 31 countries in Europe.

Thousands and thousands of homes needed

The gap between housing needs and delivery is now systemic, which highlights both social and political challenges. France requires 518 000 homes each year, including nearly 200 000 social units. Germany requires at least 400 000 annually, with 140 000 needed for social housing. The Netherlands projects a need of almost 1 million homes by 2031, and Sweden more than 500 000 by 2033. In practice, these targets are rarely met. Production often reaches only half of what is needed. Rising populations, new household formations, urbanisation and migration push demand upwards, while financing bottlenecks, rising construction costs and slow permitting stall supply. After overviewing housing systems in Europe for nearly 40 years, Housing Europe is sure that this is a crisis that cannot be addressed by market forces alone.

The human toll is visible in swelling housing waiting lists and inadequate accommodation. France has nearly 2.8 million people on social housing lists. Italy, Portugal and Germany’s major cities report hundreds of thousands more. In Czechia, 161 000 people live in substandard housing, including 45 000 who are roofless, and up to 1.3 million face energy poverty. Portugal has 130 000 families in inadequate housing, concentrated in urban areas and the Algarve. These figures point to both shortages and serious quality gaps in housing that affect our health, social cohesion and economic mobility.

Are we not already building enough?

On top of this, construction renovation and conversion rates are also faltering at a critical moment. Residential building across Europe is expected to hit a 10-year low in 2025. Escalating material costs, higher interest rates and tighter financing have forced developers to cancel or delay projects. Regulatory constraints in some countries, including caps on construction costs or restrictive rent-setting mechanisms, further limit providers’ ability to deliver new homes. Renovation, essential for climate goals, is uneven. Austria and France are advancing retrofits, while the Netherlands struggles with affordability and grid constraints. Denmark’s programme is politically secured but due for review in 2026. Germany, Ireland, Italy and Sweden face delays or scale-backs due to financial pressures.

That being said, in places where they are backed by their governments, social and cooperative housing providers are proving resilient. Dutch social housing associations delivered one third of all new housing completions in 2024. French social housing associations accounted for almost 30% of starts. Finland’s municipal companies produced one fifth of new supply. In Sweden, public and cooperative providers together build one in four homes. This counter-cyclical capacity shows that public, cooperative and social housing is not only necessary for social reasons but economic ones as well, as it stabilises markets during economic downturns and acts as a buffer against market volatility.

Homes full of … politics

Looking at policy reforms across Europe, they often seem to be a patchwork. Denmark, Ireland, Luxembourg, Portugal and Slovenia have strengthened regulatory frameworks, expanded stock or aligned programmes with climate targets. In contrast, Austria’s rent restrictions have reduced revenues for providers, Finland has dismantled long-standing institutions, France continues to cut social housing finances through rent reductions, and Italy still lacks a national housing plan. These inconsistencies highlight the political dimension of the crisis: housing delivery is closely tied to governance, policy prioritisation and public investment.

The EU plays a double role. Fiscal rules, Eurostat debt classifications and energy legislation often constrain investment, however, EU funds and European Investment Bank loans are vital for large-scale delivery. Providers of fair housing on the ground are calling for predictable long-term funding beyond 2026, conditionality and continuous support that is not impacted by elections and political tsunamis to ensure that investment produces affordable, sustainable housing rather than purely financial returns. Without such reforms, the growing financialisation of housing risks worsening inequality, pricing families out of decent homes and leaving social providers financially overextended.

The upcoming European Affordable Housing Plan in mid-December, alongside the European Parliament’s work on social and cooperative housing, is a potential turning point. To succeed, however, it will require not only funding but also political recognition of housing as essential infrastructure.

Europe’s housing crisis is a true test of political will, governance and social commitment. Millions of families are waiting, and policymakers have little room for delay.

Diana Yordanova is the Communications Director of Housing Europe, leading its external and internal policy communications work, including the organisation’s online presence, press relations and event curation. She is the go-to person when it comes to the International Social Housing Festival, streamlining the federation’s messages, journalists’ queries and the monthly newsletter and social media channels.

Housing Europe, the European Federation of Public, Cooperative, and Social Housing, has been the voice of this sector since 1988. Representing 44 national and regional federations and 16 partner organisations across 31 countries, Housing Europe oversees around 25 million homes, accounting for approximately 11% of Europe’s housing stock. Through their network of over 43 000 local housing organisations, Housing Europe is the point of reference for stable housing models, innovation and research.

Luca Bertalot, Secretary General, and Eva Dervaux, Research and Data Adviser at the European Mortgage Federation and European Covered Bond Council (EMF-ECBC) dissect the reasons for the current global housing crisis and the role of housing finance in addressing local, regional and national challenges.

By Luca Bertalot and Eva Dervaux

Housing lays the foundation for freedom, dignity and opportunity, paving a solid path towards lasting peace and shared prosperity. Housing policies for their part represent a major social boost, with the potential to support each and every citizen in realising their future expectations. The housing market not only provides shelter for all but also builds communities and supports the broader goals of European integration. Europe is shaped by ongoing political and cultural changes, sustainable building requirements, increased consumer mobility and volatility.

Not only Europe but the entire world is facing a severe housing shortage, with the root of this crisis lying in a simple economic principle: demand is exceeding supply. In major cities, the cost of living has outpaced wage growth, resulting in a significant portion of the population being unable to afford adequate housing. Addressing the global housing crisis requires innovative solutions and a collaborative global approach, and housing finance is increasingly being seen as a global private sector solution to address local, regional and national challenges.

The imbalance between supply and demand has led to skyrocketing housing prices, making it increasingly difficult for many people to afford a place to live. The Hypostat 2024 House Price Index (HPI) shows how residential property prices change over time, providing valuable insights into the different rates at which HPIs are increasing across Europe and the different housing market dynamics.

The demand for new construction in Europe has largely followed a downward trend due to high mortgage rates and high construction prices. Nonetheless, during the last few years, ongoing initiatives and an increased emphasis on building sustainability, such as the Energy Performance of Buildings Directive and the Renovation Wave initiative, may have helped to prevent a more significant decline in construction volumes. As urban populations swell and economic pressures mount, the urgency to find viable solutions grows more pressing, especially in the light of the transition to a greener economy as more than 40% of pollution comes from the building sector. The housing crisis manifests itself in various ways across the globe.

The housing market is still recovering from the consequences of the 2020 pandemic which led to reduced construction activity, supply constraints and economic uncertainty. These factors lie at the heart of the affordability challenge in Europe and the long-term increase in house prices across Europe is a central focus of the current policy debate. Affordability depends on a number of factors, including wage growth, which affects purchasing power, and inflation and fiscal policy, which affect the cost of borrowing. While average house prices continue to rise, relatively low interest rates have helped keep the mortgage market somewhat affordable.

In the last few months, with a view to addressing the current challenges and to seize new opportunities, the EU has adopted a variety of initiatives. The Affordable Housing Initiative, announced in the European Commission’s Renovation Wave Strategy for Europe, aims to ensure access to adequate and affordable housing for all Europeans, while also promoting energy efficiency and environmental sustainability. At the heart of this initiative is the recently announced European Affordable Housing Plan, which will provide a roadmap to tackle the root causes of the crisis.

The challenge of delivering both affordable and sustainable housing requires vast domestic and international support, mixing public subsidies and private capital market resources, supported by a set of market products. Combined and coordinated actions from the public and private sectors will help to ensure the scaling-up of effective housing policies and broader access to capital markets, and foster the development of global opportunities for lenders and investors while benefiting consumers.

The EMF-ECBC community has fostered a housing philosophy that responds with international solutions to local needs, fostering convergency, common best practices and financial stability for mortgage and housing markets. We are ready to assist the EU institutions by sharing knowledge, advice and best practices, cooperating, and supporting the housing agenda with an ecosystem approach, bringing affordability, energy efficiency and renovation solutions over the coming years.

In particular, we believe that we can provide a tangible contribution with our expertise in developing and leading global market initiatives such as the Covered Bond Label with its specific disclosure section of the Harmonised Transparency Template for Green & Sustainable Covered Bonds, the Energy Efficient Mortgage Initiative (EEMI), the Energy Efficient Mortgage Label, the International Secondary Mortgage Market Association (ISMMA) and a global housing and finance database (HOFINET). Initiatives, in which innovation and harmonisation of best practices have already helped leverage the market to scale-up efficiencies, demonstrate both the capacity and willingness of our sector to assume and play its full role here.

Luca Bertalot is the Secretary General and Eva Dervaux is a Research and Data Adviser at the European Mortgage Federation – European Covered Bond Council (EMF-ECBC), which acts as the main voice of EU mortgage lenders and the global covered bond community. Working with European institutions to shape mortgage and housing finance policy, its goal is to ensure a sustainable housing finance system for EU citizens.

The EMF has recently released Hypostat, its latest annual statistical report on housing and mortgage market developments in Europe and beyond. The 2025 edition covers data up to the end of 2024 and includes analysis for 31 European countries plus nine non-European markets. Its other key publication, the EMF Quarterly Review, tracks short-term trends in EU mortgage and housing markets using indicators such as interest rates, outstanding residential lending, gross and net mortgage lending, and nominal house price indices.

Teija Ojankoski, CEO of Finland’s largest national non-profit housing provider Y-Säätiö, analyses her country’s success in reducing homelessness through the ‘Housing First’ approach – a model grounded in the belief that having a home is a matter of dignity, and that permanent housing should be the starting point – not the end point – of support. Yet despite strong results, challenges remain.

By Teija Ojankoski

Finland’s adoption of ‘Housing First’ represents one of the most comprehensive transformations of homelessness policy in Europe. Rather than relying on shelters, hostels and staircase pathways, Finland carried out a national transition away from a shelter-based system and towards Housing First, grounded in the idea that permanent housing is the starting point – not the end point – of support.

This shift was built on the premise that housing is a matter of dignity, a constitutional right, and a foundation for equal citizenship. Since 2008, this shift has been guided by national programmes that provide dedicated funding, set measurable housing targets and develop strong municipal and NGO partnerships. Crucially, homelessness policy is tightly linked to housing policy and the wider welfare state. A large cost-based social and affordable rental sector, combined with income support and housing allowances, has meant that homelessness caused purely by income poverty has been largely prevented.

In practice, the transition has meant converting large shelters into supported housing units, phasing out dormitory accommodation and massively expanding scattered-site apartments with support. Y-Säätiö (Y-Foundation in English) has played a central role by acquiring dwellings across the country and developing permanent supported housing options aligned with key Housing First principles: housing without preconditions; harm reduction; choice and autonomy; separation of housing and treatment; and flexible, recovery-oriented support. Most importantly, the Finnish model emphasises broad principles rather than strict programme fidelity, giving room for local adaptation while maintaining the rights of residents at its core.

Finland’s outcomes are well-documented. Homelessness, particularly long-term homelessness, has steadily decreased for more than a decade after the introduction of the Housing First approach in 2008. Research shows improvements in housing stability, well-being and access to services once people obtain a permanent home. Interviews with frontline workers highlight the transformative role of having one’s own door and tenancy agreement; a home becomes not only a physical space, but also evidence of full societal membership, granting privacy, protection and self-determination.

Yet progress has not been without challenges. The success of Housing First depends heavily on accessible community services, especially mental health and substance use treatment, and on the availability of income support to pay rents. Another challenge concerns social inclusion. While housing ends homelessness, it does not automatically end loneliness or marginalisation. Some residents struggle with limited opportunities for interaction, meaningful activities or integration into neighbourhood life. In scattered housing, people may feel isolated; in supported units, ‘bubbles’ can form, limiting broader participation. Achieving social inclusion requires attention not just to individual support but to the systemic and environmental factors that shape daily life.

Looking beyond Finland, many of the cornerstones of Finland’s successful homelessness policies are now reflected in the new recommendations published by the European Commission’s Housing Advisory Board on 20 November 2025. The recommendations underline that ending homelessness should be the explicit goal of homelessness and housing policies. This goal will not be achieved without strong emphasis on permanent housing or without scaling up the Housing First approach. The Board’s recommendations were prepared to support the upcoming European Affordable Housing Plan, which the Commissioner for Energy and Housing, Dan Jørgensen, is expected to launch in mid-December.

Y-Säätiö recently published a research report as part of the EU’s Erasmus+ Adapting Housing First project, which examined the implementation of Housing-First-oriented homelessness work in Finland, Germany, Ireland and Spain. The aim of the project and the research was to explore how Housing First policies could respond better to the homelessness challenges faced across Europe and how they could be scaled up.

At the core of the Adapting Housing First project was a simple but crucial insight: Housing First has yielded good results, but it is still limited in scope. To fully realise its potential, the model needs to be expanded beyond narrow target groups and pilot projects and actively adapted to local welfare systems, housing markets and organisations. The project report shows that this can be done without losing sight of core principles such as housing as a right, choice, harm reduction and long-term support. At the same time, Europe is now in a favourable moment to move this work forward. Effective practices exist in many countries, political will is growing, and there is research to guide both the design of national strategies and their practical implementation on the ground.

Teija Ojankoski is CEO of Y-Säätiö (the Y-Foundation), Finland’s largest national non-profit housing provider and a key actor in Finland’s long-term work to end homelessness through the Housing First approach. She is a member of the European Commission’s Housing Advisory Board, chaired by Eamon Ryan, which advises Commissioner Dan Jørgensen on the European Affordable Housing Plan and policies to tackle the housing crisis across Europe.

From ’Tourists go home’ graffiti splashed across city walls to protesters firing water pistols at visitors, Barcelona’s backlash against over-tourism has become increasingly visible. Residents say the tourism boom is pushing up rents and property prices, reshaping daily life in the city. The Observatori Metropolità de l’Habitatge de Barcelona (O-HB) – the Barcelona Metropolitan Housing Observatory – provided us with fresh data on short-term rentals and the rise of anti-tourism sentiment.

How have short-term and tourist rentals shaped the housing market in Barcelona in recent years? Can you share some figures about legal tourist apartments and about illegal rentals? Are there clear signs or figures that this trend is affecting rental prices or availability for residents?

To understand the situation of short-term rentals in Barcelona — and in Spain more broadly — the first thing to know is that short-term rentals fall into two categories.

Firstly, there are tourist apartment rentals, which have a duration of less than 31 days. Secondly, there are seasonal rentals. Seasonal rentals are not defined by their duration but by the reason that justifies their non-permanent nature ─ for example, work, medical assistance, or studies. However, these types of rentals typically last less than a year, so we can consider them short-term rentals.

The number of legal tourist apartments grew very rapidly in Barcelona between 2010 and 2014, increasing from 632 to 9 606 apartments. Since 2014, the city council has limited the number of licences, and there are currently 10 327 legal apartments in the city. On the other hand, the number of illegal tourist apartments has been decreasing, mainly due to the significant efforts and resources dedicated by the municipal inspection services. Nevertheless, as of February 2025, there is still a considerable number of illegal tourist apartments available on online platforms, especially on Airbnb, but also on HomeAway and Booking (see fig. 1).

As for the impact of tourist apartments on the price of primary housing, one of the few academically rigorous studies is the one carried out by García-López, Montseny, and Martinez-Mazza.  These researchers concluded that between 2012 and 2016, in neighbourhoods with a higher concentration of tourist apartments, these caused a 7% increase in residential rental prices and a 17% increase in the price of property sales transactions.

The latest figures show a decrease in the average rental price in 2024, and for the first time in a decade, a narrowing of the gap between income and rental prices. At the same time there has been a staggering 62% rise in seasonal rentals – how can this be explained?

There are two types of explanations for the rise in seasonal rentals, which we have not yet been able to verify with data. On one hand, some argue that the increase is due to the regularisation of apartments that were already being rented seasonally, but had previously been listed under permanent housing contracts. On the other hand, others argue that the rise in seasonal rentals is the result of a shift from permanent contracts to seasonal contracts, as a way to avoid rent regulation (since seasonal contracts are not subject to the same rent controls as permanent housing contracts), which would constitute a violation of the Urban Leases Act. The Government of Catalonia is currently setting up an inspection service to monitor these practices and, where necessary, sanction misconduct.

Public anger about tourism seems to be tied to housing issues in Barcelona. Based on your research, to what extent are rising rents and short-term rentals feeding into the anti-tourism sentiment we’ve seen lately? Is the growth of short-term rentals affecting neighbourhood life in the city?

The growing backlash against tourism is due to a combination of many factors, among which the increase in tourist apartments is certainly one. In this regard, Barcelona City Council carries out an annual survey on public perceptions of tourism, which confirms the increasing problems relating to co-existence in residential buildings. Thus, 57.8% of Barcelona’s population believed that tourist apartments were a source of disturbances among neighbours in 2023. Specifically, 23.5% considered that there were a lot of disturbances, and another 34.4% reported some disturbances. Notably, the proportion of people perceiving disturbances increased from 49.3% in 2016 to 57.8% in 2023.

The ‘Observatori Metropolità de l’Habitatge de Barcelona’ (O-HB) is a supra-municipal body dedicated to research and analysis with regard to housing. Its purpose is to support the design and evaluation of public policies. It was created in 2017 as an initiative of Barcelona City Council, the Metropolitan Area of Barcelona (AMB), the ‘Diputació de Barcelona’ (Barcelona Provincial Council) and the ‘Generalitat de Catalunya’ (Government of Catalonia), with the support of the Association of Social Housing Managers (GHS). Since 2018, it has been integrated into the structure of the ‘Institut Metròpoli’.

Rent prices are spiralling across Europe, with tenants in some cases paying up to 125% more than they did ten years ago. We spoke with Barbara Steenbergen, head of the International Union of Tenants (IUT) Liaison Office to the EU, about which policies best protect tenants — and what concrete actions the EU should prioritise in its upcoming housing strategy. Across Europe, high-quality, inclusive and genuinely affordable housing projects already exist — some of them laureates of the European Responsible Housing Awards.

How do you assess the current state of housing affordability in Europe?

Housing affordability is a major issue across Europe. Tenants in particular are affected by this dangerous development: rents in major cities have risen more than 45% on average, with the highest increase being 125% for a one-bedroom apartment between 2014 and 2023. This is a threat for the economy and society. We are in a state of emergency, where market shortages and excessive rent demands lead to a poverty trap for millions of people.

The EU has recognised the problem and will therefore, for the first time, present a European plan for affordable housing in December 2025 and provide funding for social and affordable housing. This is supported by the institutions: we now have the Commissioner for Energy and Housing, Dan Jørgensen from Denmark. The European Parliament has a special committee to combat the housing shortage, the European Commission has a taskforce for affordable housing, and there is a new pan-European investment platform that brings together the leaders of European institutions and financial institutions.

Is the growth of short-term rentals and private investment funds in the housing market making it harder for tenants to secure affordable homes?

There is fierce and devastating competition in the rental markets. This includes the rapid rise in rents, caused by speculation and the desire to maximise profits, leading to low and middle-income households being priced out of the markets.

On top of this, the extraction of regular rental housing through short-term and short-stay rentals aggravates the affordable housing shortage.

According to the current EU definition, households that spend more than 40 per cent of their disposable income on housing are considered overburdened. This is far too high; it should be a maximum of 25 per cent, otherwise there is a massive risk of poverty. It is not only ‘vulnerable’ households that are affected; it already extends deep into the middle classes. In booming areas where the jobs are, they already spend more than half of their income on housing costs.

Which policies have been most effective in protecting tenants and keeping housing affordable?

A successful and effective housing policy consists of a balanced mix of instruments: subsidies for social and affordable housing; public land availability for non- or limited profit supply; housing allowances; security of tenure by rent law, with open-ended rental contracts as the standard; rent stabilisation mechanisms and rent caps; public incentives to landlords for the quality and energy-efficient improvement of housing. 

Do you see positive national or local initiatives that could be replicated across Europe?

An example of implementation of the above measures in affordable, inclusive, resident-centred and high-quality housing projects can be found in the European Responsible Housing Initiative. Every two years, the European Responsible Housing Awards are presented, proving that it can be done! See the winners and shortlisted projects here!

What concrete actions should EU institutions prioritise to ensure affordable housing for all?

Social conditionalities and safeguards as well as technical assistance to cities and Member States with a focus on responsible long-term investment need to be at the centre of the new EU affordable housing plan. 

The IUT strongly advises implementing the principle of ‘housing cost neutrality’ in the funding conditions for housing renovation of the European Union. Housing cost neutrality after renovation (meaning that rent increases are at least balanced by energy savings of the same amount) combines the EU climate goals ideally with a socially just transition. It prevents residents and tenants being subject to displacement, gentrification and ‘renovictions’ (evictions by renovations) and fights energy poverty.

The European Investment Bank should reconsider their recent funding schemes for the provision of social and affordable rental housing. Loans should be preferably channelled to not-for-profit housing providers and cooperatives to ensure long-term affordability and robust stabilisation of the rental markets which are being derailed through massive price and rent increases. 

For a massive investment wave in social and affordable housing, the EU State aid rules must be revised. The current rules force Member States to limit access to social housing to ‘socially disadvantaged groups’. To overcome the crisis, it is important that large parts of the population get access to affordable housing. Moreover, public investment in social and affordable housing as key infrastructure should be exempted from the EU deficit rules.

Counteract financialisation of the housing market and sale of land and housing stock in Europe: the access of corporate finance and profit-oriented investors to European markets must be regulated. Money laundering and tax evasion by international real estate trading needs to be stopped through concerted actions at EU level. An EU transparency register on real estate transactions is the first step for de-financialisation. Europe is not for sale!

Barbara Steenbergen is a member of the Executive Committee of the International Union of Tenants (IUT) and head of the IUT Liaison Office in Brussels, where she represents the interests of the European tenant associations towards EU institutions. She is Chair of the Jury of the European Responsible Housing Awards. She also serves as Vice Chair of the Tenants’ Association of Bonn.

Founded in 1926, the IUT has been advocating for tenants’ rights at an international level for almost 100 years. It currently has 78 member organisations in 47 countries worldwide.

In major university cities across Europe, students are being priced out, pushed into low-quality housing, or left without accommodation altogether. Purpose-built student housing has become a lucrative real-estate niche dominated by luxury developments that most students cannot afford. The result is a growing divide between those who can study comfortably and those who may not be able to study at all, writes Duarte Lopes, a member of the Executive Committee of the European Students’ Union. He shared with us the ESU’s wish list for Europe’s new housing strategy — one that puts student housing at the top of the agenda.

By Duarte Lopes

Across Europe, students are facing a housing emergency that threatens the very foundations of equitable higher education. In almost every major university city, students are being priced out, pushed into poor-quality accommodation, or left without a home altogether. Housing insecurity has become one of the biggest barriers to accessing and completing higher education — and a clear sign of systemic failure.

For decades, governments have treated housing as a market issue rather than a social one. Public investments in dormitories and affordable rental housing have been neglected, while speculative private investments have flourished. In many cities, student housing has become a lucrative real estate niche, dominated by luxury developments that exclude the majority of students. The result is a widening gap between those who can afford to study in comfort and those who cannot afford to study at all.

The European Students’ Union (ESU) represents over 20 million students across the continent. From our perspective, housing insecurity is now one of the most urgent social justice issues in higher education. Without a stable and affordable home, the right to education is incomplete.

We see this crisis reflected in students’ daily lives. Many spend more than half of their income on rent, juggling jobs to cover basic expenses and facing the combined pressure of rising housing costs and the broader cost-of-living crisis, creating constant financial stress. This insecurity directly impacts students’ mental health and academic performance, and is a major driver of anxiety, burnout and overall decline in mental well-being. Because affordable options are increasingly unavailable near campuses, students are frequently pushed to live far outside university areas, facing long commutes that reduce their time on campus, limit class attendance and isolate them from academic and social life. The result is an environment where students are physically present at university but excluded from fully engaging in the learning experience, which goes beyond mere class attendance.

Others live in overcrowded, unsafe or unhealthy spaces, and are sometimes without proper heating or sanitation. International students, unfamiliar with local housing markets, face scams and discrimination before they even arrive in their host countries. Hidden homelessness among students — sleeping in cars or on friends’ sofas — is no longer rare.

This is not inevitable. The housing crisis is the consequence of political choices. The ESU therefore welcomes the EU’s initiative to create a European Affordable Housing Plan and to find global solutions to the issue. Europe must restore the role of public authorities (at national, regional and local levels) and higher education institutions as active providers of affordable housing.

The ESU is calling for a European strategy that includes student housing as a key priority. This should involve:

• large-scale investments in public and cooperative student housing, financed through EU structural and social funds;
• rent frameworks to prevent speculation and ensure affordability;
• minimum standards for quality and safety for all student accommodation;
• tenant protection laws that guard against discrimination and exploitation; and
• meaningful student participation in housing policymaking at all levels.

We also need targeted solutions for mobile students. Erasmus+ grants must be adjusted to reflect real living costs, and universities should work with municipalities to reserve housing for exchange and international students. No one should risk getting scammed or having to reject an opportunity to study because they cannot find a roof to keep over their head.

Promising examples already exist. In Vienna, social housing ensures stability for generations. In Finland, student housing foundations provide affordable, high-quality accommodation. In Portugal, we can see a broad-scale use of the recovery and resilience plan to build new public student housing and to rebuild old units.

What we need now is European coordination to scale these good practices across the continent.

The time for incremental measures has passed. Housing is a right and not a commodity. Every student deserves to live and study in dignity — without fear of eviction, exploitation or poverty.

Duarte Lopes is a Portuguese student representative and Executive Committee member of the European Students’ Union (ESU). Holding a Law degree from the University of Minho, he has served as president of the Students’ Union of the University of Minho, president of the Portuguese National Union and advisor to the Portuguese National Youth Council. He was recently elected to the Advisory Council on Youth of the Council of Europe. Within the ESU, Duarte is dedicated to strengthening the political impact of student representation, engaging member unions and advancing youth rights at the European level. He believes in the power of student-led advocacy for positive change across societies.

The vision of the leadership of the Swedish City of Borås is to work for a city where no one is left out and where everybody has equal rights and opportunities to participate in community life. In making this bold vision a reality, accessible housing plays a crucial role. To enable its older citizens and those with disabilities to have an independent life, the city of Borås is building and renovating homes that meet diverse physical needs and remove barriers to independence. It also partners with property owners to offer properly adapted flats, writes Herawati Nowak, the city’s Disability Consultant.

By Herawati Nowak

In Borås, accessibility is a shared political priority. Regardless of party affiliation, the city’s leadership has consistently committed the resources needed to build an organisation that works both strategically and operationally to promote inclusion.

As our lead city councillor, Ylva Lengberg, says: 'In the City of Borås, it goes without saying that accessibility and inclusion should be the cornerstones of everything we do. All residents, regardless of their ability, should have equal rights and opportunities to participate in community life. There is a broad political consensus on working for a city where no one is left out; and by listening to the experiences and needs of people with disabilities, we can create a more accessible and inclusive Borås together'.

Accessible housing plays a crucial role in realising this vision. Housing is a basic right, and this right must extend fully to people with disabilities. When homes are designed to meet diverse physical needs, they remove barriers that limit participation in everyday life. Moreover, as people grow older and their mobility changes, accessible housing becomes essential for maintaining independence, safety and dignity. Ensuring that residents can continue living in their own homes strengthens well-being, reduces reliance on care services, and supports a more inclusive society as a whole.

To uphold this commitment, Borås uses the West Region Accessibility Guideline as its official accessibility standard. This guideline goes beyond the legal requirements and serves as the basis for designing and constructing group homes for older adults and people with disabilities. All facilities and premises are built to meet these high standards. However, accessibility extends beyond municipal buildings. We work actively to raise awareness and strengthen knowledge throughout the community, maintaining close dialogue with property owners and local businesses.

Design for different degrees of accessibility

Because privately owned properties fall outside the city’s direct mandate, collaboration is essential. One of our most successful collaborative efforts is Bokvämt, a concept designed to increase the availability of accessible housing. Through Bokvämt, the city partners with property owners to offer properly adapted flats that enable older adults and people with disabilities to continue living independently.

Bokvämt includes a formal certification system that evaluates and approves buildings based on detailed accessibility criteria. Property owners can request an inventory, an optional pre-inspection and a final certification carried out by the City of Borås. Certified properties receive a Bokvämt certificate and are allowed to display the Bokvämt sign at the entrance – clearly signalling that the building meets high accessibility standards.

There are three certification levels in the Bokvämt concept, each reflecting different degrees of accessibility. The 5-star certification, for instance, means that there are no thresholds inside, kitchens and bathrooms have enough space for a wheelchair, the bathroom shower has support handles, the laundry room and storage can be reached by wheelchair, and there is a disabled parking space close to the entrance. The different levels also serve as a practical guide for property owners, showing that they can improve accessibility through relatively simple measures – such as installing door openers or adding sturdy handrails – enabling people to stay in their homes longer and enjoy a higher quality of life.

Certification is valid for five years, ensuring that housing continues to align with current standards. The criteria cover outdoor areas, entrances, stairwells, flats and shared spaces, in keeping with principles of universal design such as step-free access, good lighting, generous circulation space and safe, accessible bathrooms.

Through initiatives like Bokvämt, building accessible group homes for the elderly and people with disabilities, and through the strong political unity behind these efforts, cities can build a community where more people can find suitable housing, live independently and participate fully in society.

Herawati Nowak is Disability Consultant for Borås Stad (the City of Borås), a Swedish municipality which takes an active, long-term approach to disability housing by building and maintaining supported group homes and supported living units designed for full accessibility and daily support. The city actively collaborates with disability organisations via three disability councils, and counts about 24 accessibility representatives (ombud) across administrations. 

Housing conditions continue to represent a significant social and economic challenge in Romania, which has the highest rate of housing deprivation among all EU countries. Habitat for Humanity Romania has developed a range of programmes to address the country’s many needs, from affordable housing and post-disaster recovery to energy efficiency and community support. We spoke with Habitat for Humanity Romania’s National Director, Roberto Pătrășcoiu, who shared some of the organisation’s impressive results, including building 36 homes in 5 days with 1 000 volunteers, setting the record for the largest volunteer build in Europe.

Habitat for Humanity Romania has been very active in recent years, from large-scale volunteer builds like Hope Build and CEO Build 2025, to renovation projects for vulnerable families. Could you tell us more about these recent initiatives, such as their goals, the impact they have had on local communities and what they reveal about the current state of housing needs in Romania?

Habitat for Humanity Romania is addressing the country’s growing housing challenges through four programmes: affordable housing, housing disaster recovery and resilience, energy resilience, and vulnerable communities.

The affordable housing programme remains our core initiative. We build homes with low-income families who cannot access the formal housing market, using transparent selection criteria: financial need (below 60% of the national average income), urgency and a 500-hour ‘sweat equity’ contribution. Over 30 years, we have built more than 5 100 homes with support from over 55 000 volunteers. Flagship builds such as Hope Build and CEO Build accelerate construction and raise visibility. In 2024 we completed 8 homes in 1 week, and in 2017 we built 36 homes in 5 days with 1 000 volunteers – the largest volunteer build ever organised in Europe.

Our housing disaster recovery and resilience programme focuses on long-term reconstruction for communities affected by disasters. We have supported thousands of Ukrainian refugees and families evacuated from Gaza, as well as Romanian communities recovering from the 2025 Suceava and 2024 Galați floods.

The energy resilience programme targets Romania’s severe energy poverty by improving insulation and reducing heating costs for vulnerable households.

Our work in vulnerable communities supports families facing extreme deprivation by renovating substandard homes and building essential infrastructure such as community centres and preparedness hubs.

Together, these programmes illustrate the scale of Romania’s housing needs – from affordability and disaster exposure to energy poverty and persistent marginalisation.

What are the main challenges you face when working with local authorities or public institutions on social housing projects? Are there particular collaboration models that you believe work best?

Two partnership models have proven most effective.

The Affordable Housing Public-Private Partnership combines Habitat’s funding, volunteer mobilisation and technical expertise with municipal land and permitting support. This simple model – land from the municipality, homes from Habitat – has improved the lives of more than 20 000 people and could be scaled nationally.

The Social Rental Agency model is particularly useful in emergencies. Habitat rents apartments from the private market and offers them free or at subsidised rates to families in need. We have applied it for Ukrainian refugees, families evacuated from Gaza and victims of the Rahova apartment block explosion. In that case, the municipality of Bucharest co-financed the intervention, demonstrating its adaptability.

The main challenges that remain are bureaucracy and slow administrative procedures, but when roles are clearly defined, these models deliver rapid and transparent results.

Habitat for Humanity Romania mobilises thousands of volunteers and corporate partners each year. What motivates this engagement, and how does it help build long-term community resilience beyond the physical construction of homes?

More than 55 000 volunteers have participated in our projects – the equivalent of a medium-sized Romanian city. Volunteering is transformative: participants gain a deeper understanding of inequality and community responsibility. Many continue engaging in civic activities, and beneficiary families often return to volunteer themselves. This cycle of involvement strengthens communities and builds long-term resilience beyond the homes constructed.

Looking to the future, what do you see as the most urgent priorities for reducing housing insecurity in Romania, and how is Habitat for Humanity Romania preparing to respond to these challenges in the coming years?

Four megatrends will shape Romania’s housing landscape: climate-related disasters, migration and displacement, energy poverty, and rising housing costs. Addressing them will require scalable, coordinated solutions such as strengthened public-private partnerships and a functional national social renting system.

Habitat for Humanity Romania’s five-year strategy aligns with these priorities. Through our four programme areas, we aim to build climate resilience, reduce energy burdens, expand access to affordable housing and support vulnerable communities. Our goal is to provide long-term stability and resilience for families across Romania.

Roberto Pătrășcoiu is National Director of Habitat for Humanity Romania. He has been at its helm since 2016, bringing strong vision and decisiveness to the organisation. His leadership stood out during critical moments, such as the rapid response to the Ukrainian and Gaza refugee crises and the severe floods in Galați and Suceava, when he successfully mobilised substantial resources to support affected families. He also played a key role in shaping and expanding major national initiatives, including the flagship CEO Build programme, helping strengthen Habitat’s impact across Romania.

Habitat for Humanity Romania is the affiliate of Habitat for Humanity, a global non-profit organisation that helps families build or improve affordable homes through volunteer labour and community partnerships. It works in more than 70 countries, offering housing support, disaster relief and advocacy for decent shelter worldwide.