Over the last 12 years, housing prices in the European Union have increased on average by just over 60%, and rents by almost 30%. Access to affordable housing for Europeans is becoming increasingly difficult, and Dan Jørgensen, the European Commissioner for Energy and Housing, is already speaking openly about the crisis and the state of emergency. That is why the European Commission has prepared an action plan covering this market at the Community level for the first time.
A housing state of emergency in Europe
– Many Europeans, seeing how much there is a housing shortage, would like it to be somewhat centrally controlled, by the European Commission or the European Parliament. On the other hand, we are in a free market area where supply and demand determine prices. Indeed, today apartments are often unavailable to the younger generation, to poorer people – Elżbieta Łukacijewska, a member of the European Parliament from the Civic Coalition, from the European People's Party, tells the Newseria agency.
The plan prepared by the European Commission is a response to the rising costs of purchasing and renting real estate throughout Europe, especially in large cities. An additional problem is the serious shortage of real estate.
Prices “from outer space” and the helplessness of young people
– Apartment prices are obscenely high. Any subsidy for those who build apartments does not make these apartments cheaper. Demand exceeds supply on the market and that is why developers often set prices out of space. When we look at young families and young people, housing is absolutely unaffordable for them, so the policy should change, but towards those who build, not towards those who buy. Also, when we look at housing estates, for example in Poland, they often lack green space, roads and all the infrastructure that makes the housing estate accessible and modern, but also family-friendly – says Elżbieta Łukacijewska.
Poland in numbers: 8 out of 10 see it as expensive
According to the report “This is us. Poles about real estate. Q4 2025” of Nieruchomosci-online.pl, eight out of 10 respondents believe that current real estate prices are high or very high. 71 percent believe that currently few people in their environment can afford to buy an apartment or house.
– There is a price that people should pay per square meter, because these prices are reaching tragic heights and no one can say why. Maybe less earnings for those who build, more opportunities for those who would like to buy, but I am aware that this is not an easy topic, because we do not have a command-and-distribution economy, we do not have a social economy. It is the market that determines prices, but certain legislative proposals could certainly make this area more consumer-friendly and a little cheaper – admits MEP KO.
Brussels says “I'm checking”: a plan to build 2 million apartments a year
Presented on December 16 'European plan for affordable housing' it primarily involves increasing the supply of affordable housing that is both sustainable and of high quality. It proposes measures for a more efficient and innovative construction and renovation sector that will address the mismatch between housing supply and demand as part of the European Housing Strategy. The plan assumes increasing the supply of apartments thanks to new buildings and renovations, and thus also reducing administrative burdens, supporting innovation in the construction sector, actions to improve the energy efficiency of buildings and thus lower bills, and mobilizing public and private investments.
The presented estimates indicate the need to build over 2 million apartments per year to meet the current demand. This is approximately PLN 650,000. more than are currently being built. The European Commission estimates that implementing these additional investments will require EUR 153 billion per year.
– This discussion and vote on the housing issue in the European Parliament immediately raises expectations, especially from local governments, that there will be a special financial line that will financially support local governments and cities in the construction of cheaper apartments. It is not easy, but I am very glad that the European Commission recognizes the housing problem in Europe and that it sets different goals for how many more apartments should be built, what simplifications in public procurement and support for Member States are needed – emphasizes Elżbieta Łukacijewska.
Billions of euros on the table. Where to get the money?
The European Commission has mobilized over EUR 43 billion for housing construction in the 2021-2027 financial perspective. In 2026 and 2027, it plans to allocate an additional EUR 10 billion for this purpose. The EC announced that it is developing a new pan-European investment platform in cooperation with the European Investment Bank, national and regional promotional banks and other international financial institutions. By 2029, EUR 375 billion is to be mobilized by partner financial institutions.
– In the current situation, it is difficult to expect that an additional fund will be created, but the discussion in the European Parliament gives hope that, especially where social housing is being built, special funds should follow. We are constantly working on the new financial perspective and we will see what will ultimately be there, but the problem is big and in every Member State, says the MEP.
According to the European Commission, only about 6-7 percent of all apartments in the EU are social housing. The proposed plan assumes changes to EU state aid rules, which are intended to facilitate financial support for affordable housing resources, including social housing.
– The local government can continue to build social housing, it is important that it has access to good credit lines and cheap areas. Perhaps what is in the resources of State Treasury companies and various institutions could be transferred to the commune for housing purposes so that it does not have to buy land. Experts would probably have to comment on this topic, I'm not a specialist, so I don't want to invent things here, but there are certainly many solutions that operate in different countries and it's nice to take a look at them – emphasizes Elżbieta Łukacijewska.
The end of the single American woman on a daily lease?
The plan also focuses on solving the problem of short-term rentals in areas with difficult housing situations. EC data shows that in the years 2019-2024 there was almost 70%. increase in short-term rents.
– It is a good idea to limit the possibility of renting apartments in large residential clusters that are rented for one, two or three days. Here we touch not only on the issue of access to apartments, but also peace and rest for those who live around such premises with their families. This problem is noticeable in Europe, says an MEP from the Civic Coalition.
According to a study by the European Parliament, in 2025 there were approximately 4 million short-term rental offers on digital platforms across the EU. Eurostat data shows that the number of reservations via them in 2024 reached a record level of 854 million overnight stays. That's 18.8 percent. more than in 2023.
