Recommendations were sent today to the European Commission by this body composed of independent EU experts, about a month before the institution reveals a European plan, advocating a “paradigm shift so that housing is seen as essential social and economic infrastructure, discouraging the financialization of housing, where it is valued as a speculative asset rather than someone’s stable home.”
These specialists also suggest “ending the lack of housing by adopting a ‘housing first’ policy [a social approach that first ensures access to decent housing] is the best way to ensure that there is sufficient supply to meet all housing needs, especially for the younger generation, the elderly, and people with disabilities.”
“The taxation of short-term rental contracts can help finance this strategy,” it is proposed, referring to local accommodation.
According to this advisory council, the EU “should not rely solely on new buildings to increase supply, especially when this leads to uncontrolled urban sprawl,” and should focus “on the efficient use of existing buildings and urban regeneration, ensuring social mixing and avoiding forced relocations in every area.”
At the same time, “it is necessary to accelerate urban planning processes to help reduce construction costs” and expand “new affordable housing solutions of the ‘rental cost’ type.”
“While housing in some cities is becoming prohibitively expensive, in other areas – often rural – it is becoming increasingly abandoned and devalued. We can correct this imbalance by investing in infrastructure that facilitates the return of people to rural areas, towns, and villages,” it is further suggested.
This week, the European Commission stated it is “closely monitoring” and wants to respond to the housing crisis in the EU, with this community plan to be unveiled in December, as Portugal records one of the highest increases in house prices.
Due to the severe housing crisis in the EU, the European Commission will present, by the end of 2025, a European Plan for Affordable Housing to complement housing policies at the national, regional, and local levels, while maintaining the principle of subsidiarity, as this is a competence of the Member States.
A European housing package is scheduled for December 16, which includes an EU plan for affordable housing, a proposal to revise state aid rules relating to services of general economic interest, a new European Bauhaus program, and a new strategy for housing construction.
The plan will include funding, state aid, and limits on local accommodation.
The European Union faces a housing crisis, in countries like Portugal, where house and rent prices have increased significantly, making it difficult to achieve affordable housing, especially for young people and low-income families.
It is estimated that in the EU, more than one in four people aged 15 to 29 live in overcrowded conditions, with many young Europeans leaving their parents’ home around or after 30 because they cannot afford their own home.
In 2023, around one in ten Europeans spent 40% or more of their income on housing and related costs.
