City leaders have welcomed today’s publication of the European Affordable Housing Plan, calling it a timely and necessary recognition that the housing crisis is no longer just a local challenge, but a pan-European emergency.
Across our cities, people are being priced out of their neighbourhoods, rents are rising faster than wages, and homelessness is growing. And when housing becomes unaffordable, it does not just hurt families. It weakens social cohesion, undermines competitiveness, and fuels labour shortages.
“We believe that today’s publication of the European Affordable Housing Plan represents a turning point for Europe’s housing crisis,” says Jaume Collboni, Mayor of Barcelona and leading the Mayors for Housing Alliance. “We are satisfied to witness that the work of Eurocities, alongside Mayors for Housing and C40, has been critical for the publication of the Plan. It constitutes a solid foundation from which we will continue to advocate on the key needs of Europe’s cities: agile and direct funding, regulatory tools and decision-making capacity”.
For cities, who are at the heart of this challenge, the Plan’s impact will depend on its ability to connect European goals with local action. “To build a strong house, you need solid foundations, and the same goes for addressing Europe’s housing crisis,” says Renaud Payre, Vice-president for Housing, Social Housing and Urban Policy for Lyon Metropole, and Eurocities Shadow Commissioner on Housing. “If the European Commission truly wants to deliver affordable, sustainable homes for everyone, it needs to start by working closely with its housing partners on the ground, including its cities.”
A strong European step towards affordable housing
The European Affordable Housing Plan is an important milestone because it clearly recognises housing as a shared European concern, as reflected in the Eurocities Pulse Mayors Survey 2025. This reflects what cities have long been saying: while housing is mainly delivered at local, regional and national level, EU decisions on funding, market rules and energy have a real impact on what gets built and who can afford to live there.
[The European Affordable Housing Plan] constitutes a solid foundation from which we will continue to advocate on the key needs of Europe’s cities: agile and direct funding, regulatory tools and decision-making capacity.
This recognition opens the door for a united European response, but only if cities are at the table as the Plan takes shape. After all, they are the ones turning policies into homes.
Turning funding ambitions into real homes
The Plan sends a positive signal by prioritising public investment and aiming at mobilising private finance, including through the European Investment Bank. The idea of a Single Gateway to EU funding is especially promising, as many cities struggle with slow, complex procedures that don’t match the urgency of the housing crisis.
Yet, for these tools to make a real difference, they must be accessible to cities of all sizes. Simpler administrative requirements, quicker grant processes and smaller, more flexible funding streams would help cities respond faster and more effectively.
Looking ahead, Michael Ludwig, Mayor of Vienna, outlines the measures needed to make the European Affordable Housing Plan effective, stating: “Europe must provide concrete instruments that enable and expand investment in social and affordable housing. Cities and regions must finally be given the financial flexibility they need to secure housing for their citizens. It is crucial that the participation and financing of cities and regions be guaranteed in the next Multiannual Financial Framework from 2028 onwards.”
“A key leverage is the reform of European fiscal rules: long-term public investment in housing must be facilitated in the European Semester and exempted from the pure deficit logic,” he adds. “Housing is a social infrastructure and not a burden on budgetary policy.”
Working better across levels of government
Prioritising housing in National and Regional Partnership Plans is a strong step forward. Cities are ready to contribute to the newly formed European Housing Alliance and the upcoming Housing Summit announced today, which offer a promising space to align policies, funding and delivery across Europe.
If the European Commission truly wants to deliver affordable, sustainable homes for everyone, it needs to start by working closely with its housing partners on the ground, including its cities.
For this cooperation to succeed, it must be practical, clear and action-oriented. Cities need direct access to European funding, with resources allocated specifically to their priorities and reallocated if left unused at the national level. They should have greater control over financial decisions, simplified administrative processes, and transparent rules to ensure accountability.
Supporting the most affected
It is encouraging that the Plan clearly acknowledges the need to protect the people most affected by the housing crisis: low-income households, young people, single parents, migrants and people experiencing homelessness. Cities are the first responders, providing shelter, support and integrated services.
To scale up these efforts, the Plan should back now city-led approaches that end homelessness, such as Housing First programmes. Earmarked support under the new European Social Fund, alongside stable funding for prevention and wraparound services, would enable cities to expand solutions that have proven to work, and reach more people in need.
Managing short-term rentals and housing speculation
The Plan takes an important step by recognising the impact of overtourism, short-term rentals and speculative investment on local housing markets. . While some cities have the competence to regulate vacancy and short-term rentals, many face legal uncertainty, uneven national rules, and a critical lack of data Without reliable, up-to-date information on property ownership, rental prices, and market dynamics, cities struggle to design targeted policies, enforce regulations effectively, or even measure the real impact of tourism and investment pressures on their housing stock.
The Commission’s promise to provide cities with stronger legal tools, such as clearer rules for short-term rentals, transparency in property transactions, and addressing empty homes, is a move in the right direction. However, local knowledge will be key in making these measures effective. Concepts like “stressed housing market areas” should be defined in close dialogue with cities, which best understand where pressure is most acute, and how to enforce rules fairly.
Cities and regions must finally be given the financial flexibility they need to secure housing for their citizens.
Unlocking delivery through flexible state aid rules
The Plan takes a major step forward by updating state aid rules, something cities have been calling for. For too long, strict rules have made it hard for cities and public housing providers to help people who earn too much for social housing but still can’t afford market prices.
Now, with more flexible rules, cities and countries can act faster and support a much wider group of people struggling with housing costs. The key will be making sure these help create neighbourhoods where affordable housing isn’t isolated, but integrated as a natural part of the mix
Better tracking of affordability
The European Semester can help spot affordability crises early and direct investment where it’s needed most. The existing housing cost overburden indicator is a good start, but policy should aim to bring housing costs towards a sustainable level – around 25% of disposable income – and set clear thresholds for intervention.
By linking monitoring to concrete measures, Europe can ensure that tracking affordability doesn’t just measure the problem, but helps solve it.
Cities are not waiting. They are building, regulating and innovating
Across Europe, cities are creating more social and affordable housing by combining new construction with smart repurposing, partnering with non-profits and cooperatives, adopting faster and cheaper building methods, and introducing bold rules like quotas and land policies.
“In Stockholm, overcrowding is a visible and pressing problem, especially in vulnerable neighbourhoods,” explains Anders Österberg, Chair of the Development Committee in the City of Stockholm. The city needs about 6,000 new homes every year, but economic challenges and inflation have cut delivery to around 2,500.
A stronger European commitment to housing is urgently needed: financial support, investments in infrastructure and incentives to build homes that meet real needs.
In response, the City of Stockholm is rolling out a Housing Provision Action Plan, coordinating city departments, housing providers and developers around a shared focus: affordability, inclusion and sustainable urban development.
A flagship under this approach is Stockholmshusen, a municipal programme aimed at speeding up affordable rental housing for households with limited resources. The model aims to halve delivery times by running planning and construction processes in parallel, and reducing costs through serial production and economies of scale.
For Österberg, the message to Europe is clear: “Financial support, investments in infrastructure and incentives to build homes that meet real needs, both in size and price, would really make a difference and increase equality.”
Rennes Metropole: scaling affordability through quotas, land tools and social mix
Rennes Metropole is showing what happens when housing is treated as a long-term mission, backed by investment, enforceable rules, and a commitment to social diversity. “Ensuring access to affordable and sustainable housing is a central priority for our city,” explains Nathalie Appéré, President of Rennes Metropole. “Our objective is clear: to provide equal housing opportunities for every resident of our territory, in the best possible way, at the most affordable cost, and in the most sustainable homes.”
Through its Local Housing Programme, Rennes is investing €300 million to build 5,000 homes per year, mixing new construction with repurposing existing buildings.
Rennes also enforces clear rules for developers: any development larger than 2,000m² must dedicate at least 25% of units to social housing, rising to 40% in central areas. These requirements are backed by conditions tied to land sales and zoning rules, ensuring that affordability is not just a promise, but a legal obligation.
Housing is far too serious a matter to be left to the market. Europe must equip cities with the tools to manage land more responsibly, regulate prices and ensure long-term affordability.
To maintain social diversity over time, Rennes uses a Unified Rent Policy, keeping rents consistent across social housing and preventing affordable units from being concentrated only in less desirable areas. The city also pioneers land trust models to lock in long-term affordability. Through the Real Solidarity Lease and Solidarity Land Trust, residents buy the building while the trust retains the land, cutting acquisition costs by 30–40% and applying resale price controls.
Apperé’s message for Europe is clear: “Housing is far too serious a matter to be left to the market. Europe must equip cities with the tools to manage land more responsibly, regulate prices and ensure long-term affordability, preventing the spiral of the market when it is not regulated. A strong and long-term European strategy is crucial if we are to provide fair, sustainable housing solutions for all”.
Ghent: making existing homes liveable and affordable through renovation support
Supply matters, but so does the quality and cost of existing homes. Ageing housing stock and poor standards are part of what is stressing the housing crisis in many cities. Ghent shows how targeted local tools can protect vulnerable households from being priced out of decent housing.
The city combines municipal subsidies, conditional renovation loans, and fiscal incentives to improve energy efficiency and living standards. Through the ICCARus programme, Ghent provides conditional loans of €15,000–€45,000 to vulnerable homeowners, alongside other local support measures. This approach not only upgrades homes but also locks in affordability for residents who might otherwise be forced out by rising costs.
Mathias de Clercq, Mayor of Ghent and Eurocities President, calls for stronger European support for cities to scale up renovation and affordability measures. “The housing and homelessness crisis can only be tackled by a streamlined policy on all policy levels and by financial and capacity support for the cities, which, in the end, are the motor to solve the crisis.”
The housing and homelessness crisis can only be tackled by a streamlined policy on all policy levels and by financial and capacity support for the cities who in the end are the motor to solve the crisis.
Moving from vision to delivery
Cities across Europe have welcomed the European Affordable Housing Plan as a much-needed step forward. It’s a recognition that housing is a challenge that demands European action. But to make this Plan a success, we need to get a few things right:
- Cities are at the heart of delivery. Cities are where homes get built, where policies hit the ground, and where people feel the impact. Let’s make sure they have the tools and the power to deliver.
- Funding that works. The Plan’s promise of simpler access to EU funding is a start, but we need more: funding that is big enough to meet the challenge, and direct access for cities, without unnecessary red tape or national bottlenecks. Cities can’t wait for trickle-down support; they need resources they can use now, tailored to local needs.
- Rules that match reality. Cities need clear, practical tools, whether it’s data on housing markets or competence to regulate that actually helps them manage land and investment.
This Plan is a solid foundation. Now, let’s build on it, together. With the right support, cities can turn this vision into homes, stability, and opportunity for millions of people.
