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Europe’s Housing Crisis: The EU’s Response

Europe’s housing crisis has become an increasingly important issue on the EU agenda. House prices have risen by up to 60% on average since 2015, while rents and energy costs have also increased. Although housing remains primarily a national responsibility, the Council of the EU is helping member states coordinate their response to a challenge with clear social, economic and cross-border consequences.

In December 2025, the Employment, Social Policy, Health and Consumer Affairs Council endorsed conclusions on the forthcoming European Affordable Housing Plan, supported by 26 member states.

The Council identified four key areas for action:

 

  • Financing

  • Construction and sustainability

  • Planning

  • Social inclusion

The Council has continued this work in 2026, highlighting the demographic dimension of the housing crisis, including ageing populations, smaller households and migration from rural to urban areas.

The Council and Parliament will now also examine the Commission’s proposed Affordable Housing Act, aimed at improving housing affordability and availability in areas facing the greatest pressure.

 

 

Documents and further reading:

 

1. Council Library: The EU’s housing crisis

2. Council conclusions on the European Affordable Housing Plan

3. Draft Council Conclusions – European Affordable Housing Plan (PDF)

4. Council: The EU’s housing crisis policy page

5. Council Working Party on Social Questions – housing documents

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