Finding affordable homes has become harder across Europe — and so has building new ones. Since 2015, house prices in the European Union have risen by 60%, while the ability of citizens to save for a home has plummeted.
The situation is further complicated by the fact that many households struggle to cover their monthly expenses because of high energy prices, directly through their bills and indirectly through the cost of groceries. Many fear that if Europe is hit by another energy crisis like the one in 2022, they will be pushed over the edge. This anxiety is justified in a geopolitical context where energy costs increasingly depend on gas prices — and Europe's gas supply, in turn, relies on an unstable relationship with the U.S.
Even if the housing sector is not fully under the competence of the EU, Brussels has the tools to support its people.
The European Investment Bank can expand low-interest loans for social and affordable housing at a scale that no national bank can match, while EU funds can de-risk large renovation programs. Additionally, common standards can lower construction costs across borders, and digital permitting can cut years from projects without gutting protections.
At the same time, the EU can lower household energy bills. Beyond investing in cheap, renewable energy and electricity grids, improving the energy efficiency of homes is a no-regret policy. Failing to encourage European citizens to invest in proper insulation, heat pumps and rooftop solar panels means higher costs down the line — costs ordinary families will ultimately have to bear.
This article is part of The Parliament's special policy report "Addressing Europe's housing crisis"
Worthwhile efforts
Recent Dutch research shows that energy costs differ substantially between homes using heat pumps and those without. It is time for the EU to move toward a single Savings and Investments Union, as the European Commission has proposed, to encourage capital markets to unlock major funding in this area. We cannot claim to compete with the integrated U.S. market if investors from Germany struggle to invest in the Netherlands.
Additionally, the EU must streamline bureaucracy and boost investment in its energy infrastructure. Oil trucks can move across borders without issue, but regulatory uncertainty, fragmentation and grid constraints hinder the integration of renewable energy across the bloc.
We can do more. The EU has a highly skilled vocational workforce — builders, installers, electricians. Yet national rules still restrict cross-border mobility for these professionals, even though university degrees are widely recognized across the bloc.
Imagine the number of hours spent across the EU on paperwork and training just to perform work that professionals are already qualified to do in another member state. If we are serious about simplification, we should start by ensuring that professionals in key sectors facing shortages can work across the entire EU.
Although Europe is not the main actor on the housing stage, it can, and needs to, play its part.
We can coordinate on semiconductors and satellites, but when it comes to the roof over people's heads, we sometimes act as if it is out of our hands.
With the adoption of the European Affordable Housing Plan and the report of the Special Committee on the Housing Crisis, the Commission and the European Parliament have acknowledged their role in tackling the housing shortage in the EU.
Parliament has voiced support for revising state aid rules that hinder public investment in social housing. At the same time, the Commission has shown it is willing to engage more actively on housing. Capital markets, raw material supply chains and a skilled, mobile labor force should be at the top of the EU agenda.
Let's wake up to Europe's potential. More homes and affordable clean energy for future generations are within reach.
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