Commissioner Dan Jørgensen opened the European Parliament's Special Committee on the Housing Crisis on March 3, 2025, with a speech signaling a stronger EU-level focus on housing affordability and availability. While recognizing that housing policy primarily falls within Member States' remit, Jørgensen emphasized the European Commission's readiness to act and support through increased funding, legislative reviews, and innovation promotion.
Growing Problem and Social Impact Highlighting that rents have risen by about 25% and house prices by 50% in real terms over 15 years, Jørgensen framed the crisis with stark statistics, noting that around 10% of the EU population spend more than 40% of income on housing, and nearly 900,000 Europeans are homeless nightly. He linked housing unaffordability to negative social consequences and reduced labour mobility, thereby affecting economic competitiveness.
Concrete EU Policy Directions While respecting subsidiarity, the Commissioner outlined several concrete measures: doubling cohesion policy investment in affordable housing, utilizing the Recovery and Resilience Facility's €21.3 billion earmark, and exploring reforms such as revising State aid rules that may hinder affordable housing investments. He also pointed to tackling short-term rental effects through upcoming EU transparency regulation and possible future legislative adjustments.
Innovation and Efficiency Focus Jørgensen suggested improving housing supply by promoting technological innovation, easing access to construction materials, simplifying cross-border provision of services and skilled labour, and optimizing use of existing housing stock. The creation of a new Housing Task Force within the Commission illustrates institutional strengthening in this domain.
Stakeholder Impact and Collaboration The proposals impact multiple stakeholders: EU producers in construction could face increased demand and regulatory changes, while national/local authorities may need to coordinate on implementation. Consumers, especially low-income and young people, could benefit from more affordable options, though some tenants or landlords might face new rules curbing short-term rentals. EU taxpayers may shoulder greater public investment but also potentially gain from improved social cohesion and economic dynamism.
Next Steps and Political Orientation Jørgensen emphasized consultation and outreach in 2025, including joint hearings with Parliament and youth dialogues. His approach balances respect for national sovereignty with increased EU-level coordination and intervention, indicating a shift towards modestly expanding EU powers in housing policy without overturning Member States' primary responsibility.
The Commissioner’s commitment to an Affordable Housing Plan aims to formalize these efforts, presenting a multi-tool strategy rather than a single solution. This stance marks a concrete policy orientation towards leveraging EU funds, regulatory adjustments, and innovation to address a pressing social and economic issue.
← Atlas › News › Employment & Social policy