As cities across Europe grapple with skyrocketing housing costs, leading mayors are stepping up to demand bold action.
Yesterday, the mayors of Amsterdam, Athens, Barcelona, Bologna, Budapest, Ghent, Leipzig, Paris, Rome and Warsaw, alongside the Vice President of Lyon Metropole and the Councillor for Housing from Lisbon, came to Brussels to make their position clear. The city of Barcelona led this housing alliance.
Dan Jørgensen, EU Commissioner for Energy and Housing, and MEP Irene Tinagli, Chair of the European Parliament Special Committee on the Housing Crisis, welcomed the city leaders to discuss an ambitious European housing agenda.
The mayors stated the need for urgent EU action to tackle the spiralling housing crisis, calling for more investment in social and affordable housing, including a dedicated EU fund and the reallocation of unspent recovery funds, while also pushing for reforms to State Aid rules and the Stability and Growth Pact, to enable greater public investment.
They explained that housing policies must prioritise social equity and ensure vulnerable communities benefit from the green transition. They also called for stricter EU regulation of short-term rental platforms and direct EU funding for cities facing national political constraints.
From his side, Commissioner Jørgensen thanked the mayors for their input and stated that he is ready to work alongside local leaders to understand the issues they are facing.
Cities must be “part of the solution”
Mayors emphasised that cities must be at the heart of shaping and implementing the EU’s plans to respond to the spiralling housing crisis.
“We, the cities, want ambitious action, and we want to be part of the solution. Our offer and our commitment are strong. Now it is time to get to work. There is no time to lose,” said Burkhard Jung, Mayor of Leipzig and President of Eurocities.
With housing costs rising faster than salaries, local governments are struggling to provide affordable options for residents.
“We need solutions, and we need them now,” stated Jaume Collboni, Mayor of Barcelona. “Housing prices have increased at a significantly higher pace than salaries, causing a substantial impact on our citizens. This is unacceptable. The very legitimacy of our democracies and of the European project is at stake.”
The mayors called for increased EU investment in affordable and social housing, demanding greater financial support through direct grants and the European Investment Bank.
“We need more money, and more of it must go directly to cities,” said Roberto Gualtieri, Mayor of Rome, calling for a pan-European investment platform based on the experiences of the NextGenerationEU recovery plan.
However, investment is not enough. Access to funding, explained mayors, must be faster and more efficient to ensure that housing projects can be implemented.
“Cohesion policy post-2027 should work hand in hand with the forthcoming agenda for cities, and be structured around macro challenges, one of which should be housing,” said Anne Hidalgo, Mayor of Paris, who also stressed the importance of reforming State Aid rules. “We know how to invest in affordable housing, but we need better regulatory tools.”
Fair and energy efficiency housing
To align with the EU’s green transition goals, mayors stated that energy-efficient and climate-resilient housing must be a priority. “We need to build new housing, and we need to improve existing stock,” said Filipa Roseta, Lisbon’s Councillor for Housing. “The EU energy transition is an opportunity to accelerate this process. It should encourage cities to regenerate our urban environment and prepare for the future.”
Mayors also called for fairness and social equity in housing policies. “Equity and social cohesion should be a cornerstone of European programmes,” explained Haris Doukas, Mayor of Athens, urging the EU to ensure that the energy transition does not deepen social divides. “Allocation of funds should enable equal access and participation in the energy transition for the most vulnerable and socially disadvantaged households,” said the mayor.
Unspent EU recovery funds should be redirected to housing projects, mayors argued. “We encourage member states to reallocate unspent resources from their National Recovery and Resilience Plans to housing,” said Matteo Lepore, Mayor of Bologna. “This would allow Recovery and Resilience Fund investments in housing to extend beyond 2026.”
Better funding solutions
For some cities, national political constraints make EU funding inaccessible, leaving local governments struggling to address the crisis. “Our citizens should not be made responsible for the wrongdoings of member states,” said Gergely Karácsony, Mayor of Budapest, calling for direct EU funding for cities affected by rule of law disputes.
Short-term rental platforms continue to distort the housing market, and mayors demanded stronger EU action to regulate them.
“We urge the EU Institutions to actively encourage all member states to implement the EU Short Term Rental regulation, as this is crucial to enforce local regulations and to stop illegal practices.” said Renaud Payre, Vice President of Lyon Metropole.
The Vice President made it clear that enabling broader investment in affordable housing should not come at the expense of funding for the fight against homelessness. “On the contrary, a specific European fund should be set for this purpose as part of the next Multiannual Financial Framework, and a portion should be directly managed by local authorities and its social partners,” he explained.
During their visit to Brussels, mayors also called for a revision of the EU’s fiscal and debt rules to exclude investments in affordable housing from deficit and debt ceilings under the Growth and Stability Pact. “Exceptional times require exceptional measures,” stated Mayor Gualtieri.
Mayors also called for stronger EU support to tackle housing challenges in rapidly growing cities, where population growth is outpacing the availability of affordable homes.
“Housing is a fundamental right”
With the European Commission continuing to develop its vision for a European Affordable Housing Plan, mayors emphasised that now is the time to ensure that cities, where housing challenges are most urgent, have a direct role in shaping policies that will impact millions of residents.
As Europe faces multiple crises, including climate change and rising social inequalities, the mayors stressed that housing must remain at the top of the EU agenda.
“Housing is a fundamental right. We need to do more, and we need to do it now,” concluded Mayor Hidalgo.
The mayors left Brussels with a clear message: cities are at the forefront of the housing crisis, and they are ready to work with the EU institutions to ensure that every European has access to a decent and affordable place to live.
Main photo by the city of Barcelona
