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5d ago

EU Unveils First Affordable Housing Plan With Rental Rules, Permitting Push and €375 Billion Target

Brussels outlines EU-level tools to help countries expand affordable housing.

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The EU wants to boost construction to help tackle the bloc's growing housing crisis
Locals living in tourist hotspots blame short-term rental platforms such as Airbnb for driving up rents
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Overview

  • The European Commission presented its first bloc-wide Affordable Housing Plan, with officials estimating the EU needs about 650,000 additional homes each year to ease shortages.
  • Draft EU legislation on short-term rentals is due by end-2026 to give cities legal certainty for measures such as caps on rental nights or seasonal limits without imposing bans.
  • Planned revisions to state aid and fiscal rules would allow greater public spending on affordable housing, extending beyond traditional social housing programs.
  • An EIB-led coalition of public and regional banks targets up to €375 billion mobilised for social and affordable homes by 2029 via a pan-European investment platform.
  • The package sets a construction agenda to cut red tape and speed permits, including a European Strategy for Housing Construction, a proposed Construction Services Act in 2026, and a simplification package in 2027.