European cities are under growing pressure to respond to the housing crisis, as rising costs increasingly outpace incomes. A recent Eurocities briefing highlights how local authorities are working to expand social and affordable housing while also supporting wider social goals such as inclusion, employment and access to services. Yet the scale of the challenge is vast, with an estimated €270 billion annual investment gap. Cities need reliable, long-term funding to build, renovate and maintain housing, as well as to provide the support services that help people stay in stable homes.
Despite the range of EU funding programmes available, cities often struggle to access them. Funding priorities are largely set at national or European level and do not always reflect local realities. Administrative complexity, delays, and limited involvement of cities in decision-making further reduce the impact of these funds. Instruments such as the Recovery and Resilience Facility and cohesion policy funds have offered some support, but their design has often been too centralised, leaving cities with limited flexibility to respond to urgent needs.
The briefing calls for a more ambitious and practical approach. This includes designing funding tools that better match how housing projects work in practice, simplifying procedures, and ensuring cities have a stronger role in shaping priorities. Upcoming EU initiatives — including the next long-term budget and a future European Affordable Housing Plan — offer a chance to make these changes. With better alignment between funding and local needs, cities will be in a stronger position to deliver the homes and support their residents need.
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