On 12 May 2026, Commissioner for Energy and Housing Dan Jørgensen announced a forthcoming Affordable Housing Act to regulate short-term rentals and unveiled a €10 billion EU budget mobilisation for affordable housing over the next two years. Speaking at the Informal Housing Ministerial meeting in Cyprus, Jørgensen also launched the European Housing Alliance, a consultative body for member states, regions, cities and stakeholders to shape future housing policy.
The Commissioner framed the housing crisis as a social emergency, noting that house prices in the EU have risen by over 60% since 2013 while rents have climbed around 20%, with urban areas hit hardest. He described the European Affordable Housing Plan as the overarching strategy, now being followed up with concrete initiatives.
On financing, Jørgensen said €10 billion will be additionally mobilised from the EU budget this year and next, while partner financial institutions have pledged to mobilise €375 billion by 2029. He also highlighted work on a Pan-European Investment Platform to create appropriate financing instruments for affordable and social housing.
A housing simplification package is planned for next year to boost supply, with a call for evidence to stakeholders to be launched soon. The centrepiece of the speech was the Affordable Housing Act, which Jørgensen said he will soon propose. The legislation will give local public authorities tools to limit negative effects of short-term rentals in areas under housing stress and measures to foster affordable housing. Short-term rentals have almost doubled between 2018 and 2024, reaching up to 20% of housing stock in some neighbourhoods, according to the Commissioner.
Jørgensen stressed that Brussels alone cannot solve the crisis, calling for mobilisation at all levels of governance. He announced the launch of the European Housing Alliance, inviting housing experts from member states, regions, cities, stakeholders and local communities to help shape future policy.
a specific legislative act (Affordable Housing Act), a numerical target for EU budget mobilisation (€10 billion), a pledge from financial institutions (€375 billion by 2029), and a timeline for the simplification package (next year). However, details on the exact scope of the short-term rental regulation and the financing instruments remain to be specified.
Jørgensen's policy orientation leans toward stronger public intervention in housing markets, framing housing as a human right rather than a commodity. The speech emphasises social inclusion and well-being over profit, particularly in regulating short-term rentals. The approach is interventionist but collaborative, seeking to empower local authorities while building a multi-level governance alliance.
EU citizens in housing-stressed areas could benefit from lower rents and increased availability if the measures are effective. Short-term rental platforms (e.g., Airbnb, Booking.com) face new regulatory constraints that may reduce their operations in affected areas. Local public authorities gain new tools but also administrative burdens to implement and enforce the rules. EU taxpayers contribute to the €10 billion budget mobilisation, which may increase fiscal pressure or reallocate funds from other priorities.