What changed between the draft committee report and the plenary report

Added:– having regard to the mission letter of 17 September 2024 from Commission President Ursula von der Leyen to Dan Jørgensen, Commissioner-designate for Energy and Housing,

Added:– having regard to the publication by Ursula von der Leyen of 18 July 2024 entitled ‘Europe’s Choice – Political guidelines for the next European Commission 2024-2029’,

Added:– having regard to the study of December 2025 requested by Parliament’s Special Committee on the Housing Crisis in the EU (HOUS) entitled ‘Mapping the housing needs in the EU, assessing the impacts of scarcity and providing an overview of relevant EU legislation’,

Added:– having regard to its resolution of 24 November 2020 on tackling homelessness rates in the EU,

Added:– having regard to the political commitment on housing made by the President of the European Commission in her 2025 State of the Union address of 10 September 2025,

Added:– having regard to the Commission communication of 30 June 2021 entitled ‘A long-term Vision for the EU’s Rural Areas - Towards stronger, connected, resilient and prosperous rural areas by 2040’, its action plan and the Rural Pact,

Added:– having regard to the Commission communication of 26 February 2025 entitled ‘Action Plan for Affordable energy’ (COM(2025)0079),

Added:– having regard to its resolution of 20 May 2021 on reversing demographic trends in EU regions using cohesion policy instruments,

Added:– having regard to the UN Convention on the Rights of Persons with Disabilities (CRPD), in particular Article 19 thereof, which entered into force for the EU on 22 January 2011 in accordance with Council Decision 2010/48/EC of 26 November 2009 concerning the conclusion, by the European Community, of the United Nations Convention on the Rights of Persons with Disabilities,

Added:– having regard to the Commission notice of 20 November 2024 entitled ‘Guidance on independent living and inclusion in the community of persons with disabilities in the context of EU funding’ (C(2024)7188),

– having regard to Rules 55 and 213 of its Rules of Procedure,

Changed:– having regard to the report of the Special Committee on the Housing Crisis in the European Union (A8-0000/2026),(A10-0025/2026),

Change 1

Changed:A. whereas a home is more than just a shelter and constitutes the foundation for familiesfamilies, households, individuals and communities to grow and thrive; whereas housing unaffordability is increasingly affecting not only low-income but also middle-income familiesfamilies, households and individuals across Europe; whereas young Europeans are particularly affected, facing increasing difficulty in leaving their parents’ home, which, in 2023, was happening at an average age of 26.3; whereas investingthe reduction in familiesaverage meanshousehold size requires the housing stock to be redesigned to ensure all groups have access to housing; whereas these trends highlight the need to fully deploy the EU’s demography toolbox; whereas the lack of affordable housing places particular financial strain and risk of social exclusion on vulnerable groups, including elderly and homeless people; whereas for tenants and first-time buyers, among other groups, renting at an affordable price or owning a decent home has become harder than ever; whereas investing in thedecent, sustainable and affordable housing for all means building a better future offor Europe; whereas successfully addressing the current housing crisis contributes to achieving a paramount social goal for the Union;

Change 2

Removed:B. whereas housing policies fall within the competences of the Member States and the EU is bound to respect the principle of subsidiarity in accordance with Article 5(1) TEU; whereas EU policies can have direct and indirect effects on the drivers of housing supply and demand; whereas a comprehensive and tailor-made approach, opposing a ‘one-size-fits-all’ principle, is needed;

Added:B. whereas Article 34(3) of the Charter of Fundamental Rights of the European Union states that ‘the Union recognises and respects the right to social and housing assistance so as to ensure a decent existence for all those who lack sufficient resources’; whereas Article 25 of the Universal Declaration of Human Rights states that ‘everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care’; whereas Article 17 of the Charter of Fundamental Rights of the European Union states that ‘everyone has the right to own, use, dispose of and bequeath his or her lawfully acquired possessions’ and that ‘no one may be deprived of his or her possessions’; whereas Article 17 of the Universal Declaration of Human Rights states that ‘everyone has the right to own property alone as well as in association with others’ and that ‘no one shall be arbitrarily deprived of his property’; whereas the protection of property is an essential element of individual and public freedoms, and every natural or legal person is entitled to the peaceful enjoyment of their possessions and Principle 19 of the European Pillar of Social Rights calls for ‘adequate shelter and services for the homeless in order to promote their social inclusion’;

Removed:C. whereas housing challenges are diverse across the Member States, regions and cities, including rural areas, islands and the outermost regions; whereas the role of local, municipal and regional authorities is key, both in identifying needs and in developing tailor-made measures to address local challenges; whereas promoting a comprehensive urban strategy is essential, particularly in depopulated, rural and insular areas;

Added:C. whereas Europe is facing not only a housing crisis but, above all, a crisis of affordability, whereas in the EU, from 2010 until the second quarter of 2025, rents increased by 28.8 % and house prices by 60.5 %; whereas in the EU, in the second quarter of 2025, when compared with the same period in 2024, rents increased by 3.2 % and house prices increased by 5.4 %, with many Member States experiencing skyrocketing increases; whereas minimum-wage earners spend, on average, 8.6 % more of their disposable income on housing costs than other employees; whereas 10.6 % of the EU urban population is suffering housing cost overburden, meaning that the total housing costs represent more than 40 % of their disposable income; whereas around 1.3 million people are homeless and sleeping rough or in emergency accommodation on any given night in the EU, with almost 400 000 of them being children;

Removed:D. whereas the main cause of this crisis is the limited supply of housing stock, both private and public, resulting from insufficient construction and underinvestment over the past number of decades; whereas in 2024, the floor area index saw a further decline of 1.6 % and the dwelling index stagnated; whereas in 2023, building permits fell by 14.6 % for floor area and by 19.6 % for the number of dwellings, and have significantly decreased since 2021; whereas this downward trend highlights the need for legal certainty and greater efficiency in permitting procedures; whereas the housing affordability crisis presents not only a social challenge, but also a major economic threat to the EU’s competitiveness; whereas it is therefore necessary to increase the construction and renovation of dwellings both for sale and for rent;

Added:D. whereas housing policies fall primarily within the competences of Member States, and the EU is bound to respect the principle of subsidiarity in accordance with Article 5(1) TEU; whereas the EU plays a key role in enabling and enhancing the capacity of Member States, regions and municipalities to respond to the housing crisis, which differs across the EU, through the adoption of effective and supportive frameworks; whereas EU legislation and policies strongly shape national housing markets and can have direct and indirect effects on the drivers of housing supply and demand; whereas a comprehensive and tailor-made approach to housing policies, opposing a ‘one-size-fits-all’ principle in recognition of the different affordability realities among Member States, is needed to adequately address the diverse housing challenges across Member States; whereas EU support in housing policy should therefore remain flexible and adaptable, including with respect to the choice of instruments and planning mechanisms, enabling Member States, regions and municipalities to tailor solutions to their housing contexts in areas such as construction and rental housing policies;

Removed:E. whereas speeding up land transformation and management processes is crucial to ensure the availability of land for final construction; whereas the current complexity and length of urban planning procedures, which often take over a decade, hinder the development of new housing supply; whereas, according to the OECD, these mismatches in supply and demand stem from geographical constraints and regulatory restrictions in many cities, including those related to land use and zoning provisions;

Added:E. whereas housing challenges and solutions are diverse across the Member States, regions and cities, including rural and mountainous areas, islands and the outermost regions, many of which subsequently suffer from specific and profound demographic challenges; whereas many Member States lack the knowledge to develop effective and tailor-made local housing policies; whereas, many medium-sized cities have untapped potential in terms of housing space, services and infrastructure, but struggle to attract investment and workforce; whereas territorial development therefore constitutes a strategic objective for the social, economic and environmental cohesion of the EU;

Removed:F. whereas 10.6 % of EU citizens reported being unable to adequately heat their homes in 2023; whereas key EU legislation has influence in this area, and realistic solutions are needed;

Added:F. whereas efficient and successful housing policies require multilevel governance and the active involvement of local stakeholders and residents; whereas the role of local, municipal and regional authorities is therefore key, both in identifying needs and in developing tailor-made measures to address local challenges through their competences in land use, spatial, urban and regional planning, building regulations, and permitting; whereas promoting inclusive and community based local and regional development plans that include education, healthcare, infrastructure, transport, economic development, and leisure is essential, while studying different possibilities for municipal cooperation, particularly in densely populated areas; whereas public authorities at all levels must be empowered and properly funded to guarantee access to decent, affordable and adequate housing; whereas peripheral and rural areas must receive adequate attention to ensure equitable access to decent, affordable and sustainable housing for all, regardless of geographical location; whereas innovative rural housing policies, such as allowing multiple dwellings on family owned land with appropriate environmental infrastructure, can help sustain and repopulate rural communities;

Removed:G. whereas housing is subject to an excessive tax burden, with the marginal effective tax rate on owner-occupied housing accounting for up to 30 % in some of the Member States;

Added:G. whereas among the main causes of the housing crisis is the limited supply of housing stock, both private and public, resulting from a range of factors, including the insufficient construction and underinvestment in decent, sustainable and affordable housing over the past decades, rising energy and utility costs, and a persistent imbalance between housing demand and supply; whereas in 2024, the floor area index saw a further decline of 1.6 % and the dwelling index stagnated; whereas in 2023, building permits fell by 14.6 % for floor area and by 19.6 % for the number of dwellings, and have significantly decreased since 2021, with the number of approved permits for housing units falling from 1.99 million that year to 1.54 million in 2024; whereas this downward trend highlights the need for legal certainty, reduced red tape, enhanced data collection greater efficiency in permitting procedures and the sharing of best practices, as well as local zoning regulations, which are currently overly lengthy and complex, causing delays in construction, repurposing and renovation process; whereas simplifying and streamlining the complex set of rules in order to speed up housing construction, repurposing and renovation across Europe is crucial for the provision of decent, sustainable and affordable housing; whereas the housing affordability crisis presents not only a social challenge, but also a major economic threat to the EU’s competitiveness by restraining labour mobility, reducing disposable income, deterring investment, and increasing regional disparities; whereas it is therefore necessary to increase the construction, reconversion of unused buildings and renovation of dwellings both for sale and for rent, meeting accessibility criteria where needed; whereas greater use should be made of unused public infrastructures to increase housing solutions;

Removed:H. whereas construction costs markedly increased from 2021 onwards, following the COVID-19 pandemic, and were further exacerbated by Russia’s war of aggression against Ukraine, leading to supply chain disruptions, higher energy prices, labour shortages and rising interest rates;

Added:H. whereas ensuring effective use of land and pre-planning for smart density development, including brownfield redevelopment, and speeding up land transformation and management processes are crucial to ensure the availability of land for final construction process; whereas the shortage of land ready for development and of potential building sites constitutes one of the main bottlenecks in housing construction; whereas planning frameworks and regulations play a role in safeguarding standards and ensuring that housing construction is of adequate quality and meets social and safety objectives; whereas the current complexity and length of urban planning procedures, which often take over a decade, hinder the development of new housing supply renovation and repurposing of existing building stock; whereas establishing predictable and transparent pre-planning meetings for planning applicants could improve effectiveness and transparency in housing developments; whereas lengthy and complex planning and legal procedures can delay urgently needed housing developments; whereas, according to the OECD, these mismatches in supply and demand stem from geographical constraints and regulatory restrictions in many cities, including those related to land use and zoning provisions; whereas a streamlined and efficient permitting system could substantially alleviate the housing crisis; whereas the EU issued guidelines on 13 May 2022 to streamline and accelerate permitting procedures for the deployment of renewable energy installations, as part of a Technical Support Instrument project; whereas it is necessary to adapt planning instruments and structures to the evolution of settlements and transport networks; whereas delays in housing development are driven by fragmented governance, rigid regulations, limited administrative capacity, overlapping rules and legal challenges; whereas these inefficiencies restrict housing supply and increase costs, particularly in high-demand regions; whereas simplifying procedures, reducing excessive bureaucracy, ensuring timely decisions, strengthening legal certainty, guaranteeing balanced access to justice and improving governance and coordination among different actors are key to improving competitiveness and accelerating the delivery of decent, sustainable and affordable housing;

Removed:I. whereas, despite some recovery since, construction output in 2019 was still 8.3 % lower than it had been in 2007; whereas productivity, efficiency and cost-effectiveness can be improved via digitalisation of permits and administrative procedures, robotisation, artificial intelligence, modular and offsite construction, and serial and industrial construction, among other measures;

Added:I. whereas net land take in functional urban areas in the EU amounted to approximately 450 km² per year between 2012 and 2018; whereas Eurostat data shows an additional increase of 4 900 km² of residential and service land between 2018 and 2022; whereas most Member States converted more land to urban use than they re-naturalised during this period, according to the European Environment Agency, with arable land (47 %) and pastures (36 %) being the most affected; whereas rural housing is shaped by broad and interconnected challenges, including demographic shifts, financial barriers, spatial inequalities, rapid economic changes, rising housing prices and the need for energy transition and industrial transformation, which undermine access to land for farmers, in particular young farmers, and hamper the supply of decent, sustainable and affordable housing;

Removed:J. whereas EU citizens have a right to property, as laid out in the EU Charter of Fundamental Rights; whereas 69.2 % of EU households were owner-occupiers in 2023, reflecting the importance of property ownership as a driver of stability; whereas disrespect for property affects communities and especially small property owners; whereas the Member States and public authorities bear responsibility for addressing owners’ rights, vulnerable households and families with housing needs;

Added:J. whereas 10.6 % of EU citizens reported being unable to adequately heat their homes in 2023; whereas key EU legislation to achieve long-term financial stability, such as the Energy Performance of Buildings Directive and the Energy Efficiency Directive, sets technical requirements regarding sustainability, energy efficiency, and safety; whereas the Energy Efficiency Directive, which was revised in 2023, raises the EU energy efficiency target, requiring a further 11.7 % reduction in energy consumption by 2030; whereas improving the energy efficiency of buildings represents an industrial opportunity, but dependence on non-EU components results in strategic vulnerability and loss of added value; whereas EU legislation aims to ensure high-quality, future-proof housing, but also increases construction costs, ultimately borne by buyers and tenants; whereas a warm and safe home should not be a privilege and no one should be left behind, with realistic solutions implemented at EU, national, and local levels;

Removed:K. whereas companies in the construction and renovation sector have reported a lack of skilled workers; whereas the construction workforce is among the five main occupational groups facing labour shortages in Europe;

Added:K. whereas energy poverty is an issue affecting all Member States and has a disproportionate impact on vulnerable families, including children and elderly, particularly in large, ageing housing blocks with low energy efficiency that result in high heating costs; whereas 14.5 million children in the EU lived in homes with leaks, damp or mould in 2023 and 154 000 Europeans die prematurely every year due to poor indoor air quality; whereas 75 % of the EU’s building stock has a poor energy performance rating; whereas energy-efficient buildings powered by renewable energy could reduce energy bills, improve health and well-being, and minimise long-term operational costs; whereas buildings account for 40 % of final energy consumption in the EU; whereas all EU countries should have established a draft national building renovation plan by 31 December 2025; whereas the plans will provide essential information for housing policies, including an overview of the national building stock, investment needs and financing sources; whereas the speed and level of renovations is still unsatisfactory; whereas energy-efficient renovation is unattractive for older people, who have the highest rate of ownership of old homes; whereas the Renovation Wave initiative should promote energy-efficient retrofits aiming for energy performance levels at reasonable cost-efficiency;

Removed:L. whereas in 2019, approximately 3.4 million enterprises were active in the EU construction sector, most of them small and medium-sized enterprises (SMEs), producing EUR 549 billion worth of added value and employing 12.7 million people;

Added:L. whereas in certain Member States housing may be subject to excessive taxation, with the marginal effective tax rate on owner-occupied housing accounting for up to 30 % in some of the Member States, thereby reducing incentives for private investment in housing; whereas the acquisition of land can represent around 40 % of the final purchase price of a house in Western Europe, and up to 60 % of the final purchase price in the most densely populated areas; whereas such high rates of taxation especially deter young families from buying their first home, further intensifying demographic challenges; whereas reforms to property taxation can improve its efficiency, support financial stability and reduce distortions in housing markets; whereas balanced tax incentives, such as reduced taxes for first-time buyers, could help improve housing affordability; whereas easing tax burdens on decent, sustainable and affordable housing can improve families’ access to quality homes;

Removed:M. whereas access to housing finance is essential to meet housing needs, as well as to support construction and renovation; whereas improving access to credit, without compromising on macroeconomic prudence, should be part of a balanced response to the housing crisis; whereas access to credit for construction has significantly tightened since 2008, with banks reporting declining loan demand across the EU, particularly in the real estate sector; whereas private developers are well positioned to deliver diverse housing solutions efficiently and sustainably, without requiring extensive state intervention;

Added:M. whereas the construction sector represents about 9 % of the EU’s GDP; whereas construction costs markedly increased from 2021 onwards, following the COVID-19 pandemic, affecting various economic sectors, including construction, and were further exacerbated by Russia’s war of aggression against Ukraine, leading to supply chain disruptions for construction and renovation materials, higher energy and construction material prices, labour shortages and rising interest rates; whereas the sharp increase in the cost of construction materials and energy is felt particularly acutely in remote areas, the outermost regions and islands;

Removed:N. whereas social and affordable housing is financed by national, regional, and local authorities, as well as final users of the homes; whereas about 7 % of the EU’s Recovery and Resilience Facility (RRF) fund in 2024 was spent on social housing and other social infrastructure; whereas the European Investment Bank (EIB) Group launched its first action plan for affordable housing in June 2025; whereas the EIB action plan includes financial instruments such as debt finance, intermediated loans, equity and counselling services; whereas the EIB underlines that the main challenge of the housing crisis is a lack of supply issue, which affects social cohesion and EU competitiveness;

Added:N. whereas, despite some recovery since, construction output in 2019 was still 8.3 % lower than it had been in 2007; whereas productivity, efficiency and cost-effectiveness can be improved via digital, streamlined and one-stop shop permitting, improved administrative procedures, robotisation, artificial intelligence, modular and offsite construction, reuse of construction materials and serial and industrial construction, among other measures; whereas technology should enhance safety and working conditions in the construction sector, including health and safety standards, while contributing to environmental and social sustainability; whereas industrial prefabrication alone can decrease construction time by 20-50 % and create significant energy and cost savings, and innovative practices can help to alleviate inefficient use of urban spaces; whereas there is an innovation gap in the EU construction sector, with only 6.5 % of companies being market leaders in innovation, while 75.9 % of construction companies in Europe do not innovate; whereas the EU should encourage large-scale deployment of technologies that improve the energy efficiency performance of housing stock;

Removed:O. whereas the Commission’s proposal for the mid-term review of the cohesion policy includes the possibility of doubling the funding available for affordable housing, as well as the option for the Member States to voluntarily reallocate part of their current funding programmes; whereas the European Court of Auditors has underlined that this proposal does not include any reference to a gap analysis identifying where EU intervention is most needed; whereas cohesion policy funds should be deployed strategically and with efficient and transparent procedures; whereas cohesion policy alone cannot resolve the current housing crisis as, according to the economic analysis performed for the EIB Report 2024-2025, the investment gap in affordable housing is estimated at EUR 270 billion per year; whereas public funds should be complemented by attracting private investment;

Added:O. whereas 69.2 % of EU households were owner-occupiers in 2023, reflecting the importance of property ownership as a driver of stability, intergenerational wealth and freedom of investment; whereas half of EU homeowners have no mortgage, and around one quarter are still at risk of poverty; whereas property ownership provides additional financial stability for families and pensioners; whereas disrespect for property affects communities and small property owners, especially in cases of illegal occupation or prolonged misuse of the dwelling in the context of contractual relationships that lack effective enforcement; whereas private property is threatened by illegal occupation, known as squatting, and systematic non-payment of rent phenomena, which harms communities and particularly small property owners, forcing them to exit the market and to rightfully recover their property, thereby reducing the available supply and contributing to rising prices whereas illegally staying in a property undermines the EU Charter and constitutes a violation of the rule of law; whereas the EU, Member States and public authorities bear responsibility for addressing property owners’ rights, and providing particular support to small-scale owners, families in need and vulnerable households;

Removed:P. whereas, in 2023, young people across the EU left their parental home on average at the age of 26.3, and in certain Member States almost 70 % of young adults aged 18-34 had no alternative but to continue living with their parents; whereas this delay in leaving their family home prevents younger generations from starting an independent life and forces many citizens to postpone important life decisions such as starting a family;

Added:P. whereas a third of the EU population are tenants, many lacking adequate housing; whereas this underlines that resilient and crisis-proof housing systems, such as rental, social and cooperative housing, are needed; whereas different models exist that involve a balance between the protection of property owners and tenants; whereas forced evictions are defined as the permanent or temporary removal, against their will, of individuals, families or communities from the homes or land they occupy, without the provision of, and access to, appropriate forms of legal or other protection; whereas Member States and local and regional authorities bear primary responsibility for providing housing assistance to vulnerable households, especially in cases of eviction; whereas secure and stable housing, whether owned or rented, is essential for individual and community well-being; whereas there is a need to develop and support mechanisms for tenant and community representation; whereas insufficient protection of tenants and vulnerable households undermines social cohesion, equality and stability;

Removed:Q. whereas there is an ongoing housing crisis in Europe that affects mainly low- and middle-income households; whereas the loss of purchasing power within low- and middle-income households negatively affects the possibility of their acquiring or renting affordable housing; whereas real estate investments guarantee the right to property, as laid out in the EU Charter of Fundamental Rights, and provide a source of additional income for pensioners and families who have invested their hard-earned savings;

Added:Q. whereas companies in the construction and renovation sector have reported a lack of skilled workers; whereas the construction workforce is among the five main occupational groups facing labour shortages in Europe; whereas the construction sector provides 18 million direct jobs and is a key engine of economic growth in the EU; whereas Eurofound data shows that job quality is a significant factor in attracting more workers into the construction sector, and that labour shortages are driven by challenging working conditions and relatively high levels of temporary employment and self-employment associated with long subcontracting chains and the cyclical and project-based nature of employment in the sector; whereas addressing these shortages requires investment in vocational education and training, apprenticeships and lifelong learning, as well as ensuring that jobs in the sector are attractive through fair contracts, decent wages, and stable employment conditions; whereas improved working conditions, stronger health and safety standards and other incentives are essential to protect those employed in this high-risk sector, to make construction a sustainable and desirable career path, and to ensure the long-term delivery of high quality housing stock as well as drive competitiveness and innovation in the European construction industry;

Removed:R. whereas affordable housing and social housing lack consistent definitions both in academic literature and in the EU acquis, and the criteria for determining them fall exclusively within the remit of each Member State; whereas the new emphasis on housing at EU level has spurred a lively policy debate around suitable pan-European definitions which could facilitate investments; whereas UN-Habitat considers housing to be affordable when net monthly housing expenditure does not exceed 30 % of a household’s total monthly income; whereas this approach is compatible with definitions and criteria used in the Member States and different EU institutions and bodies, which have affordable housing policies and regulatory frameworks; whereas Parliament is an active participant in this debate and may adapt, if needed, the basic definitions following further interaction with other EU institutions and bodies, as well as the Member States and other stakeholders;

Added:R. whereas the housing crisis is a major obstacle when it comes to attracting and retaining talent in the Member States; whereas labour migrants and seasonal workers make a contribution to key sectors across the EU, yet many are housed in overcrowded or poor accommodation; whereas in several urban areas across the EU, the concentration of labour migrants and seasonal workers in specific neighbourhoods already facing socio-economic challenges can lead to spatial segregation, poor housing conditions and social tensions; whereas the European Labour Authority has identified the establishment of letterbox companies, non-compliance with working conditions, bogus self-employment, fraudulent social security registrations, and the abusive posting of third-country nationals as the most relevant violations in the sector; whereas the responsibility of the private sector to end these types of practices must be clearly defined; whereas social partners in the construction sector should continue to play an active role in tackling undeclared work;

Removed:S. whereas more data on the housing situation and needs in the Member States is essential; whereas data collection and comparability remain a challenge, as housing policies are deeply rooted in local and territorial contexts; whereas, according to the Commission, more evidence is needed on the impact of short-term rentals on housing market prices; whereas the OECD has emphasised that greater flexibility in landlord-tenant relations, including in the area of rent control, can encourage housing investment, ease supply-demand mismatches and lower barriers to residential mobility;

Added:S. whereas in 2019, approximately 3.4 million enterprises were active in the EU construction sector, most of them small and medium-sized enterprises (SMEs) , producing EUR 549 billion worth of added value and employing 12.7 million people; whereas self-employed workers, micro-enterprises, and SMEs constitute the core labour force in the sector and are key to its competitiveness, and therefore require a supportive and stable regulatory and investment environment; whereas the real estate activities sector employed 2.7 million people representing 1.7 % of all employment in the EU’s business economy in 2022, to which better access to credit and other financing support should be provided; whereas support to the private sector, be it national or EU support, should aim to stimulate the involvement of SMEs, in addition to larger entities, thereby contributing to a healthy, competitive construction sector and diversifying the sizes and types of residential developments;

Added:T. whereas tourism is a vital economic driver for the EU, as it contributes to 10 % of the EU’s gross domestic product, significantly impacting growth, employment and social development, which makes it an asset in addressing economic downturns and unemployment; whereas any measures or actions proposed should not generate negative perceptions of tourism or deter tourism; whereas short-term rental schemes, ranging from entire homes to individual rooms, can contribute positively to local economies, help address depopulation by promoting rural tourism, support the preservation of old properties and provide an additional source of income for owners and tenants; whereas the use of residential properties for tourism purposes can also generate additional income for families, support their economic independence and serve as a source of funding for energy-efficient renovation of buildings; whereas evidence shows, however, that the short-term rental market has become increasingly professionalised and concentrated, spanning from small scale property owners to multi-property investors; whereas studies have documented that in certain neighbourhoods of Barcelona, Paris and Rome, short-term rental accommodation represents between 17 % and 25 % of all housing units; whereas in 2024, guests spent 854.1 million nights in short-term rentals in the EU, which represented an 18.8 % increase compared with 2023; whereas the increase in short-term rental accommodation and the growing shift from long-term housing may come to the detriment of residential housing, especially in tourism-intensive regions such as major cities and coastal, island and outermost regions; whereas more empirical studies are needed to inform action on the proliferation of short-term rentals; whereas diverse solutions are needed, given the diverse nature of local realities and the number of municipalities and local territorial entities in the EU; whereas the EU’s fragmented and inconsistent legal framework on short-term rentals is undermining enforcement; whereas regions and cities need tools to address legal uncertainty; whereas regulation of this activity, if needed, is better accomplished at a level closer to the citizen, as the principle of subsidiarity mandates, and shows consistency with EU case-law;

Added:U. whereas access to housing finance is essential to meet housing needs, as well as to support construction, renovation and repurposing, in particular for the approximately 3.8 million SMEs active in the EU construction sector; whereas improving access to credit, without compromising on macroeconomic prudence, should be part of a balanced response to the housing crisis; whereas access to credit for construction has significantly tightened since 2008, with banks reporting declining loan demands across the EU, with mortgage interest rates having increased, thus limiting the development of affordable housing and the sustainable renovation of existing stock; whereas the entire prudential framework should be aimed primarily at ensuring financial stability, focusing on sound banking criteria, and preventing housing bubbles; whereas private developers can play an important role in delivering diverse housing solutions efficiently and sustainably, and at a price that people can afford; whereas crowding-in private investment therefore could be helpful; whereas the renovation, conversion and extension of the existing housing stock is a cost-effective and rapid solution to the housing crisis; whereas, according to the European Central Bank, the last 15 years have seen increased divergence in residential real estate market access, with low- and middle- income households facing greater difficulties in obtaining credit for home purchases; whereas access to loans for purchasing a home can be challenging, specifically for young families and in rural areas, and access to long-term, affordable financing is therefore needed; whereas the regulation of mortgage markets can play a key role in supporting housing affordability; whereas the linkage between real estate trusts and funds, banks and other institutional investors, may pose risks to financial stability; whereas such interlinkages should be subject to transparent reporting;

Added:V. whereas social and affordable housing is financed by national, regional, and local authorities, with the EU playing a key role through funding instruments, cooperation facilitation and best practice exchanges among Member States and cities; whereas investment in social and affordable housing stock has declined dramatically since the 2008 financial crisis; whereas the proportion of public, cooperative and social housing has been steadily declining; whereas just 7 % of the EU’s Recovery and Resilience Facility fund in 2024 was spent on social housing and other social infrastructure; whereas, in the implementation of the RRF, shortcomings have been identified with regard to transparency and clarity in the definition and monitoring of criteria at national level; whereas national promotional banks and institutions (NPBIs) play an essential role in financing decent, affordable and sustainable housing, leveraging private investment and strengthening the financing framework at national and regional level; whereas NPBIs have promoted more than 380 000 dwellings across the EU and committed close to EUR 50 billion in financing to the housing sector in 2023 alone, thus strongly complementing EU-level initiatives with their long-lasting expertise and experience; whereas access to social housing programmes for the most vulnerable groups should be ensured;

Added:W. whereas the European Investment Bank (EIB) Group launched its first action plan for affordable housing in June 2025; whereas the EIB action plan includes financial instruments such as debt finance, intermediated loans, equity and counselling services, while maintaining its status as an investment bank and safeguarding its triple-A status; whereas the EIB underlines that among the main challenges of the housing crisis is a lack of supply, due to a wide range of factors, which affects social cohesion and EU competitiveness and which can vary from one place to another; whereas the EIB Group builds its approach on core priorities, such as affordable housing, innovative housing and renovations, thereby lowering household costs and strengthening long-term energy security; whereas there is still a need for greater transparency and clarity from the EIB on available housing financing, including instrument types, financial conditions, eligibility criteria, co-financing requirements, schedules, guarantees and flexible arrangements for special cases and specific areas such as rural areas, islands, and the outermost regions; whereas the lack of clear information and mechanisms hinders access for regions and municipalities, causing delays and exacerbating the housing crisis;

Added:X. whereas the Commission’s proposal for the mid-term review of the cohesion policy funds includes the possibility of doubling the funding available for affordable housing, as well as allowing Member States to voluntarily reallocate part of their current funding programmes; whereas the European Court of Auditors has underlined that this proposal does not include any reference to a gap analysis identifying where EU intervention is most needed; whereas the EUR 7.5 billion of EU support allocated to housing under the cohesion policy funds represents 2 % of the total cohesion policy funding (EUR 379 billion) for the period 2021–2027; whereas, according to the Commission, the Member States will decide on the amounts to be spent on housing and cohesion-related expenditure in their national and regional partnership plans; whereas this risks undermining their capacity to leverage cohesion policy funds and innovative affordable housing projects; whereas the Commission and Member States should adopt multi-year policies aimed at establishing national stocks of affordable and sustainable housing as well as promoting renovations that lower household costs; whereas cohesion policy funds should be deployed strategically and with efficient and transparent procedures, respecting workers’ rights and collective agreements to ensure fair competition; whereas cohesion policy alone cannot resolve the current housing crisis as, according to the economic analysis performed for the EIB Report 2024-2025, the investment gap in affordable housing is estimated at EUR 270 billion per year; whereas public funds can be complemented by attracting private investment; whereas the reallocation of unspent Just Transition Fund money could support the construction of housing, as the Commission has encouraged Member States to channel unspent funds to affordable, sustainable and decent housing;

Added:Y. whereas the housing crisis experienced by millions of citizens in the EU is hitting young people particularly hard; whereas, in 2023, young people across the EU left their parental home on average at the age of 26.3, and in certain Member States almost 70 % of young adults aged 18-34 had no alternative but to continue living with their parents; whereas, in 2024, nearly half (49.1 %) of all young adults aged 18 to 34 in the EU lived with at least one parent or contributed or benefited from the household income; whereas, in 2024, close to half (47.2 %) of young adults in the EU who lived with at least one parent or contributed or benefited from the household income were students or otherwise outside the labour force whereas this delay in leaving the family home prevents younger generations from starting an independent life and forces many citizens to postpone important life decisions such as starting a family, living independently or relocating to start one’s professional career; whereas access to housing for young people is the first step to enabling their independence and the accomplishment of their objectives and desires; whereas housing has a direct impact on demographic trends; whereas 40.7 % of the total student population in the EU lives away from the family home, but only 38 % reside in student accommodation managed by universities, public entities or accredited operators; whereas this situation reveals a structural shortage of approximately 4.8 million bed spaces across the EU, underlining the urgent need for coordinated European, national and local action to expand and improve affordable and quality student housing; whereas high housing costs and a shortage of decent, sustainable and affordable housing rental and starter homes have deepened generational inequality;

Added:Z. whereas in many Member States, rents are rising faster than incomes, waiting lists for public housing are growing, and access to decent, sustainable and affordable housing is becoming out of reach for low- and middle-income households; whereas the loss of purchasing power within low- and middle-income households and rising housing costs undermine the possibility of their acquiring or renting affordable housing, with broader demographic and socio-economic consequences, such as increased levels of social exclusion; whereas housing transactions declined in 2023 compared to 2022 in 13 of the 16 Member States for which data is available, marking a second consecutive year of falling sales; whereas addressing not only the supply but also the strategic location of affordable housing, particularly near employment centres, public services and sustainable transport networks, is essential to reduce commuting burdens and enhance quality of life; whereas an inclusive housing policy should address these inequalities and ensure that everyone, regardless of their background or status, has access to decent, sustainable and affordable housing;

Added:AA. whereas social and affordable housing is financed by national, regional, and local authorities, with the EU playing a key role in supporting them, including through its State aid rules; whereas affordable housing and social housing lack consistent definitions both in academic literature and in the EU acquis, and the criteria for determining them fall within the remit of each Member State, in line with national and regional circumstances; whereas UN-Habitat considers housing to be affordable when net monthly housing expenditure does not exceed 30 % of a household’s total monthly income; whereas the OECD defines social housing as residential rental dwellings provided at below-market prices that are targeted and allocated according to specific rules; whereas these approaches are compatible with definitions and criteria used in the Member States which have affordable housing policies and regulatory framework and stipulate detailed categories for affordable housing, income thresholds, and social criteria which prioritise allocation; whereas Parliament is an active participant in this debate and intends to contribute to the definitions following further interaction in consultation with EU institutions, Member States and stakeholders; whereas the definitions require that access to affordable housing markets be open to all service providers; whereas the provision of social housing, as part of SGEI, is primarily intended for disadvantaged citizens or socially less advantaged groups unable to obtain housing at market conditions; whereas an impact assessment should have been carried out to evaluate how these definitions will affect access to and provision of social and affordable housing in the Member States; whereas effective solutions to improve housing affordability in many EU cities have been developed through public-private partnerships, in which public authorities collaborate with cooperative or non-profit actors to deliver genuinely affordable and social housing;

Added:AB. whereas people with disabilities are among the groups most impacted in accessing decent and affordable housing; whereas too many persons with disabilities remain in inadequate accommodation due to the lack of accessible housing; whereas upholding EU commitments under the UN Convention on the Rights of Persons with Disabilities requires Member States to expand accessible, community-based housing; whereas 11.1 % of people with disabilities were overburdened by housing costs in 2023; whereas 4.4 % of persons with disabilities experience severe housing deprivation; whereas 70-80 % of existing housing stock is unsuitable for independent living for people with disabilities; whereas estimates suggest that there are more than 1 million persons with disabilities aged under 65 and more than 2 million aged over 65 living in institutionalised care facilities in the EU; whereas insufficient accessibility in the housing stock deepens social exclusion and limits the ability of persons with disabilities to live independently and to participate fully and equally in society;

Added:AC. whereas effective housing policies require the availability of transparent reliable, detailed and comparable statistics across the EU; whereas data collection and comparability remain a challenge, as housing policies are deeply rooted in local and territorial contexts; whereas current datasets are often fragmented and fail to capture the territorial dimension of housing dynamics; whereas the collection of housing data would allow for a better understanding of location-specific trends and territorial disparities; whereas such data is essential to monitor affordability, assess systemic risks, and guide evidence-based policymaking; whereas robust data is also required on homelessness, affordability, land take, vacancy and the use of building stock, and on renovations and retrofitting, in order to design effective policies; whereas Parliament initiated the EU Land Observatory pilot project, which is currently being implemented; whereas housing is taken into account in cost-of living calculations, revealing variations across EU countries in house and utility prices, based on purchasing power parities and the overall price level index for household expenditure; whereas the main housing-related components of consumer goods and services include electricity, gas and other fuels; whereas in 2021, 19.5 % of dwellings in the EU were unoccupied, that is, they were either vacant or secondary residences; whereas that is a 23 % increase in comparison with 2011;

The role of the EU on housing policies