How cohesion policy, the Urban Agenda and civil society can help make housing affordable again

Across Europe, rising rents and house prices are putting decent housing out of reach for many. In response, the European Economic and Social Committee (EESC) has adopted an opinion calling for urgent action, stressing that affordable housing must be a cornerstone of EU cohesion policy, as the crisis threatens both social inclusion and economic competitiveness.

Between 2015 and 2023, average house prices and rents in the EU increased by 48%, while wages lagged behind. Today, more than 10% of urban households spend over 40% of their disposable income on housing. The result? A growing number of workers can’t afford to live near their jobs, leading to labour shortages in key sectors like healthcare, education and public services.

The EESC warns that this is reducing regional resilience and deepening inequality. 'This is not only about access to housing, but also about access to opportunity,' says Elena-Alexandra Calistru, rapporteur for the opinion. 'We need a shift in how we understand housing: from a commodity to a pillar of competitiveness, inclusion and cohesion.'

Cohesion policy must do more, and do it smarter

While housing remains largely a national competence, the EESC makes a strong case for a greater EU role, particularly through cohesion policy and smart financial instruments. It argues that the EU should go beyond simply investing more money. What’s needed is better coordination of funding tools, innovative financial models, and stronger engagement with civil society and local actors.

The opinion welcomes recent EU initiatives, including the creation of a Housing Task Force and a European Affordable Housing Plan, but urges broader involvement of stakeholders such as local authorities, professional bodies and NGOs to ensure that policies reflect real on-the-ground needs.

The EESC also supports the creation of an EU-wide framework defining affordable housing in all its forms: from social housing to affordable renting and ownership. Such a framework would give investors legal certainty and enable policies to respond more flexibly to diverse regional circumstances.

Investing in the future

Looking ahead, the EESC is calling for housing investment to become a strategic priority in the EU’s post-2027 cohesion policy, with a particular focus on climate-resilient, sustainable housing. The opinion also recommends revisiting EU State aid rules and broadening financial instruments to better support housing initiatives.

The Committee urges the Member States to redirect unused resources from their national recovery plans towards affordable housing, and supports proposals to exclude public investment in this area from national debt calculations under EU fiscal rules, a step that could unlock billions in urgently needed funding.

Finally, the EESC highlights the role of civil society and local communities in building lasting solutions. From proven policies like Finland’s Housing First model to innovative partnerships between cities and the private sector, Europe already has inspiring examples to follow.

For the EESC, the message is clear: housing is not just about shelter. It’s about fairness, opportunity, and the strength of Europe’s social fabric. And it’s time for EU policy to reflect that.

'We cannot build a resilient, competitive and cohesive Europe while so many people struggle to find a place to call home,' said Elena-Alexandra Calistru. 'Affordable housing must be seen as a fundamental right and a shared responsibility at every level: European, national, and local.'