The European Commission has welcomed the 75 recommendations of the Advisory Board on Housing, which will form the basis of the European Affordable Housing Plan expected to be adopted by the end of the year.

The Board, established in June 2025, consists of fifteen experts with diverse backgrounds, ranging from urban development and housing economics to social policy and innovation. Its mandate was to submit concrete policy proposals to address the housing crisis affecting millions of Europeans.

According to the report, Europe has been facing a multi-layered housing crisis in recent years, with property prices rising by 55.4% and rents by 25.7% between 2010 and 2024, while some member states recorded increases exceeding 200%.

Low-income households have not kept pace with rising prices, resulting in over 40% of their income being spent on housing. The commercialisation of urban housing has turned property into an investment commodity, leading to displacement, rent hikes, and social exclusion. Furthermore, 50% of Europeans aged 18–34 continue to live with their parents due to the lack of accessible and affordable housing. There are also significant shortages in social housing and infrastructure, leaving thousands of citizens—including refugees, people with disabilities and the elderly—living in inadequate or even unsafe conditions.

The Advisory Board on Housing stresses that housing is not merely an economic asset but a fundamental social right, comparable to transport, energy or water. To address the crisis, it proposes a paradigm shift centred on tackling homelessness as a first priority, promoting sustainable urban development and regeneration, advancing the green transition and energy efficiency, fostering innovation in construction and financing, and ensuring coordination at European, national and local levels.

The Commissioner for Energy and Housing, Dan Jørgensen, stated that the Board’s proposals strengthen his determination to present an ambitious and comprehensive European Affordable Housing Plan that will provide relief, dignity and opportunities for all citizens.

The plan, which will be unveiled by the end of the year, will include measures to increase the supply of affordable housing, financial mechanisms to support public and private investments, new regulations to protect tenants, and enhanced coordination between member states, local authorities and EU institutions.

One of the key proposals is the implementation of the “Housing First” principle, which has proven effective in reducing recurring homelessness and improving public health. The creation of a European homelessness fund, financed through a tax on short-term rentals, is also recommended to support local housing initiatives. Strengthening social housing remains a central pillar, aiming to protect vulnerable groups from rent increases.

For sustainable urban development, the Board recommends prioritising the use of existing buildings rather than new construction that worsens urban sprawl. Renovating and repurposing vacant properties would increase housing availability and improve neighbourhood quality.

The report also proposes mechanisms such as “inclusionary zoning,” requiring private developments to allocate a proportion of affordable units to prevent social exclusion. The creation of land banks by public authorities would help acquire and manage land for social housing development, limiting speculation.

Within the framework of the green transition, priority is given to renovating existing buildings to improve energy performance, reduce living costs and contribute to climate goals. Integrating renewable energy sources in new and existing buildings would alleviate energy poverty. The report also suggests banning tenant evictions due to renovations, ensuring residents do not lose their homes because of energy-upgrade works.

In the field of innovation, the Board proposes adopting modern construction methods that reduce costs and building time while improving quality. The establishment of a European Investment Fund for Affordable Housing would mobilise capital from private and public entities to develop social and affordable housing. The issuance of “green” housing bonds would finance social housing projects, offering low risk and stable returns to investors.

For coordination at European, national and local levels, the creation of a European Housing Platform is recommended, aimed at collecting data, monitoring progress and sharing best practices among member states.

Strengthening local authorities is also deemed essential, as municipalities are most familiar with local needs and should have direct access to EU funding. The introduction of “auto-enrolment” mechanisms for social housing would increase participation among vulnerable groups.