Europe’s Affordable Housing Plan: Essential for young workers and the EU at large

The European Commission has unveiled its Affordable Housing Plan, addressing one of the EU’s most pressing social challenges: the housing crisis. After years of rising prices and rents, access to affordable housing has deteriorated across Europe. While non-legislative and fully respecting Member States’ competences, the Plan lays the groundwork for future regulatory, legislative, and funding initiatives.

The Housing Plan is structured around four pillars and ten actions, combining investment, regulation, structural reform, and social protection.

Pillar I focuses on increasing housing supply and mobilising EU public and private investment, particularly for social and affordable housing.
Pillar II addresses market pressures through regulation, including short-term rental rules, improved data transparency, and measures to curb speculation.
Pillar III promotes structural reforms at Member State level to improve planning, land use, social housing provision, and affordability, supported by EU guidance and funding.
Pillar IV targets those most affected by the crisis, notably young people and students, by improving access to housing and promoting innovative solutions.

The European Strategy for Housing Construction supports these pillars through increased productivity, innovation, faster and digitalised permitting, and the scaling-up of modular construction. However, the Affordable Housing Plan relies mainly on coordination and soft law, with no binding legislation or dedicated EU funding. A European Housing Alliance and the first EU Housing Summit aim to strengthen cooperation and multi-level governance.

The Plan highlights best-practice examples from across Europe, including Spain’s industrialised construction programme (PERTE), the Netherlands’ streamlined permitting system under the “Omgevingswet”, Estonia’s fully digitalised building permit process, Germany’s “Hamburg Standard” to reduce construction costs, Portugal’s RRF-backed Affordable Student Housing programme, and Finland’s Housing First model, which has delivered sustained reductions in homelessness.

Between 2010 and 2023, house prices in the EU increased by around 48%, while rents rose by approximately 22%, with incomes failing to keep pace. Young people have been disproportionately affected, facing growing barriers to independent living and an increased risk of overcrowded and insecure housing.

Klaus Heeger, CESI Secretary General, states:

“The EU’s Affordable Housing Plan is a necessary first step. To uphold Europe’s social model, it must deliver on affordability and accessibility while safeguarding competitiveness and advancing green objectives. This will require coordinated action, sustained investment, and long-term reform.”

Antonello Pietrangeli, CESI Youth Representative, reacts:

“For millions of young workers, housing costs are a long-term barrier to stability. High rents and unaffordable bank loans limit mobility, education, and career opportunities. Living pay cheque to pay cheque just to cover housing costs is not sustainable.”

Next steps

In 2026, the European Commission will launch a Pan-European Investment Platform for Affordable and Sustainable Housing to help close the €150 billion annual investment gap. The Platform will bring together public and private actors, share financing options and best practices, and support project development, helping turn EU commitments into concrete, locally adapted housing solutions.