Housing crisis – EESC recommends taking bolder measures

The EESC March plenary saw the adoption of an exploratory opinion on housing at the request of the Cyprus Presidency of the EU which calls for more ambitious initiatives from the European institutions while recognising that the competence must remain national, in accordance with the principle of subsidiarity.

The European Economic and Social Committee (EESC) is continuing to monitor the housing emergency and has adopted a new opinion to press the EU institutions to take urgent action.

Drawn up by Thomas Kattnig and adopted at the March plenary session, the opinion Tackling housing scarcity through affordable, sustainable and family-oriented housing policies urges the European Commission in particular to adopt far more ambitious measures to address the structural housing crisis.

‘Housing is a fundamental right,’ said Mr Kattnig during the plenary session. ‘Europe must curb speculation, protect people from energy poverty and invest in affordable, sustainable homes for families and future generations.’

The EU institutions must act urgently

In the opinion, the EESC welcomes the European Affordable Housing Plan presented by the European Commission in December 2025. However, it is of the view that the Commission must act swiftly to present the announced initiatives and even stronger measures, including:

• better framework conditions;
• a right to adequate and affordable housing in EU primary law;
• a fundamental reform of the energy market design;
• sufficient funding; and 
• a stronger focus on young people, families and sustainability. 

The Committee criticises the lack of clear land-use and spatial planning guidance, the risks of urban sprawl and of climate backsliding and the insufficient role given to cities, regions and local authorities.

In addition, it calls for an effective rural development strategy and proven tools, with a mandatory percentage of subsidised, affordable housing.

Energy poverty and the housing crisis are interconnected

The EESC points out that energy poverty and the current housing crisis are two interconnected challenges affecting millions of Europeans. Both, especially in combination, prevent people from participating in social, cultural and economic life. 

In light of this, the Committee calls for a comprehensive understanding focusing on combining environmental responsibility with financial affordability, so that housing costs do not exceed 25% of a household’s disposable income, for an energy market reform decoupling electricity from the most expensive energy source, for regulated basic energy consumption for vulnerable households and for a ban on them being disconnected from the grid.

All stakeholders must team up

In addition, the EESC recognises that the housing crisis is caused, among other things, by the insufficient supply of sustainable and affordable housing in relation to need. The EU therefore needs to use every means possible to increase the volume of affordable housing available for purchase or rent. To do this, all the players must be on board: public, non- and limited profit and private. 

Housing assistance measures are important and, to be effective, they must be accompanied by consistently stronger consumer protection.

Likewise, the ongoing financialisaton, particularly in urban areas, is an issue and, in this regard, the EESC calls on the Commission to support Member States by issuing recommendations to combat it. Due to their overreliance on the private rental market, young people and families are disproportionately exposed to its effects, which is a major factor driving up rents and diminishing affordability.

Housing must remain a national competence

Housing policy is and must remain a competence of the Member States in accordance with the principle of subsidiarity.

On this matter, the Committee calls for an expanded and clearly defined exemption in State aid rules in order to safeguard public-welfare-oriented housing models throughout the EU. Questions of how to define target groups and carrying out income checks should be left to the Member States in accordance with the principle of subsidiarity.

In addition, the EESC calls for landlords of homes heated by fossil fuels to bear part of the carbon tax incurred by those homes to protect tenants from excessive rent increases due to costs being passed on. At the same time, private landlords must be supported if they are unable to bear the costs of such measures.

The 2026 EU Housing Summit

Finally, following the 2024 Liège Declaration, the EESC welcomes the Commission’s intention to organise the first ever EU Housing Summit in 2026 and acknowledges that it should have a role at the summit. 

On this point, the EESC invites the Commission to organise an annual EU Summit on Social and Affordable Housing in partnership with the European Parliament, the EESC and the Committee of the Regions to make sure that this remains a priority across Europe. 

The summit would gather all stakeholders involved in implementing Member States’ housing actions, on the basis of a multi-level approach and best practice exchange, respecting subsidiarity.

Background

This EESC exploratory opinion has been requested by the Cyprus Presidency of the Council of the European Union to assess to what extent measures on affordable housing can complement measures aimed to reduce energy costs for families and support vulnerable households.

Housing and energy policies are two sides of the same coin. Addressing energy poverty can significantly improve the quality of life for households, principally the most vulnerable.

A balanced approach is vital, one that can make it possible to achieve both social objectives (e.g. access to adequate housing for low/moderate income groups) and the energy transition.