#HousingCrisis – EESC calls for a European Affordable Housing Plan

At its September plenary, the European Economic and Social Committee (EESC) hosted a debate with Commissioner for Energy and Housing Dan Jørgensen, and called on the European Commission to take urgent action to address the ongoing housing crisis.

The EESC urges the European Commission to put together a European action plan on affordable housing and is ready to contribute to it by adopting a specific opinion with key recommendations and by committing to co-organising the first-ever EU Housing Summit together with the Commission, the European Parliament and the Committee of the Regions.

Speaking at the EESC plenary debate on 18 September 2025, Aurel Laurenţiu Plosceanu, EESC Vice-President in charge of Communication, said that the Committee had always stood up for decent, affordable and sustainable housing for all throughout the EU, and that as a trusted partner of the Commission, it made sure civil society was heard loud and clear: ‘Today we are excited to share the results of our work – fresh ideas to help improve housing for people all over Europe. The Danish Presidency asked us to gather civil society’s input for the European Affordable Housing Plan. Our message is clear: the EU needs an action plan to make the right to housing a reality and to anchor it in EU law.’

For his part, Dan Jørgensen, Commissioner for Energy and Housing, said that housing represented a major challenge in Europe, as in many EU countries people were struggling to find a place they could afford and where they could live with dignity. ‘However, this also gives us an opportunity to make a real, positive and lasting difference in the lives of millions of citizens across Europe,’ he added. ‘If we want a Europe that is fairer, more competitive, and truly independent, we need housing that is decent, sustainable and affordable for every citizen. So let’s take on this challenge. Let’s seize this opportunity. And let’s build a better Europe together.’

The right to housing must be included in EU law

The plenary session saw the adoption of the opinion For a European Affordable Housing Plan – the contribution of civil society, drafted by John Comer and Thomas Kattnig. In the opinion, the Committee stresses that the right to decent, sustainable and affordable housing must be formally enshrined in EU primary law, and calls on the Commission to develop an action plan to enforce it.

‘Sustainability goes hand in hand with affordability. People cannot afford houses. A lot of Europeans living in cities are paying up to 40% of their salary for housing,’ said Mr Comer.

In order to address the shortage of affordable and sustainable housing, the EESC highlights the urgent need for a coordinated EU approach that respects the principle of subsidiarity, as housing policy remains primarily a Member State competence.

‘The housing crisis goes right to the centre of society and can do a lot of damage to democracy. We need to set the framework at European level with subsidiarity as the guiding principle,’ said Mr Kattnig.

The Committee also urges reforms to State aid rules to allow broader access to social housing, as the current definition of service of general economic interest (SGEI) focuses only on the lowest-income households and excludes middle-income households and key workers, thus limiting Member States’ ability to respond to rising demand.

In addition, the Commission must take a coordinated initiative with the Member States to regulate short-term rentals, including transparent data exchange, targeted local measures and strict oversight to stop speculative investment and tax evasion.

The views of EU civil society

During the ensuing debate, Stefano Mallia, president of the EESC’s Employers’ Group, pointed out that when buying a house becomes increasingly out of reach, it undermines trust in the political and economic system. ‘Businesses are ready to be part of the solution. However, in order to succeed we must recognise a key challenge: fiscal discipline. Without sound fiscal policies and clear commitments from the Member States, we risk solutions that fail to meet the scale of the challenge.’

On behalf of the EESC’s Workers’ Group, EESC member Marco Wagener warned about the importance of housing for social cohesion in our societies and against the rise of populism. He also underlined the issues related to short-term tourist rentals and overtourism, which often lead to the eviction of local populations from city centres: ‘Housing is a basic human need; it should not be considered a commodity or an object of financial speculation. Affordable housing is a service of general interest.’

Baiba Miltoviča, president of the EESC’s Section for Transport, Energy, Infrastructure and the Information Society (TEN) and member of the EESC’s Civil Society Organisations’ Group, stressed that European cities need long-term and innovative financing schemes deployed at EU level to support the retrofitting of social and municipally-owned housing stock: ‘It is crucial to recognise that there are different housing support systems and funding gaps in Europe. These need to be tailored with different solutions, and InvestEU can help with wider guarantee coverage, in some markets, for higher social value, low-income housing.’