ByEuronews
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•Updated
The European Commission pledged to identify speculation and promote transparency in housing markets as part of its first affordable housing plan unveiled Tuesday.
The plan includes measures to identify speculative behavior and push for fairness in the residential housing market, Commissioner for Energy and Housing Dan Jørgensen told Euronews Europe This morning show. However, he clarified that further analysis is needed to determine the full impact of speculation on housing costs.
“Some experts are arguing that this is indeed a problem. Others are saying that probably not so much. So we will start an analysis, and then we will present next year our take on that,” Jørgensen said when asked whether speculation drives the housing crisis.
The European Commission estimates that 650,000 homes per year should be added to the current level of newly constructed homes, representing around 1.6 million new units annually.
“Housing is a big concern. We are in a housing crisis and thereby a social crisis,” Jørgensen told Euronews the morning after the Commission plan’s presentation.
The plan includes revising state aid rules to allow governments to support social and affordable housing projects without prior notification and authorization. Until now, housing has been eligible for state aid only for limited projects meant to help only those in greatest need.
Since 2013, house prices in the EU have risen by more than 60%, while average rents have increased by around 20%, Commission data shows.
Jørgensen emphasized that building new homes alone would not solve the crisis. “We also need to use the buildings that we have better. In some cities, there are also a lot of vacant houses and a lot of vacant buildings,” he said.
The housing shortage has particularly affected Europe’s youngest prospective renters and homeowners. The average age of leaving the parental household in the EU was 26.2 years in 2024, ranging from 21.4 years in Finland to 31.3 years in Croatia, according to Eurostat.
“Unfortunately, young people are not able to leave their parents’ house,” Jørgensen said. “Sometimes it’s because they want to buy a house and they can’t, other times it’s because there simply is no rent available.”
The Commission will present legislation next year to address short-term rentals which reduce the number of homes available for residents, especially in Europe’s cities that have become top tourist destinations.
“Short-term rentals can be good, but in some places we have seen how they push the prices up on housing, and sometimes even crowd out normal people from their homes,” Jørgensen said.
The EU will mobilize at least €11.5 billion from its multiannual budget to be added to the €43 billion already committed to social, affordable and sustainable housing. National and regional promotional banks and institutions are expected to invest €375 billion by 2029.