European Commission launches plan to tackle housing crisis with €43 billion investment proposal

European Commission President Ursula von der Leyen has declared that Europe faces a severe housing crisis and pledged a comprehensive, EU-wide response to boost housing supply. Speaking on the challenges facing member states, including Ireland, the Commission chief outlined a series of measures designed to improve affordability, sustainability, and accessibility in the housing sector.

The newly launched European Affordable Housing Plan aims to tackle issues such as high demand, limited supply, rising rents, long waiting times for social housing, and growing homelessness. The crisis has particularly impacted essential workers, including teachers, nurses, and firefighters, who struggle to find affordable accommodation in the communities they serve.

To address these pressures, the Commission's plan proposes a €43 billion housing investment mobilisation alongside the creation of a new pan-European investment platform. Key elements of the initiative include actions to streamline planning processes, reform state aid rules, and manage the impact of short-term rentals on local housing markets.

Additionally, the proposal advocates for changes to state aid regulations and a strengthened lending role for the European Investment Bank. These reforms are intended to support public housing delivery across member states, where housing scarcity and homelessness remain serious challenges.