The European Union (EU) has already allocated €43 billion for housing investments within the current multiannual financial framework and is working on a new legislative package that will address short-term rental regulations. This announcement was made by Dan Jørgensen, the European Commissioner for Energy and Housing, during a hearing in the European Parliament.
To summarize, the EU’s allocation comes from its budgetary resources, cohesion funds, and the InvestEU program. A proposed Affordable Housing Act is underway, which will focus on measures related to short-term rentals. Notably, around 20% of housing stock within the EU is currently unoccupied, as per the data presented by the Commissioner. Local authorities will be equipped with flexible tools to manage housing markets that are under pressure.
During the hearing, Jørgensen characterized the housing crisis as structural, driven by insufficient supply, low productivity in the construction sector, a lack of skilled labor, and rising costs. He emphasized that relying solely on public funding is not viable, underscoring the necessity of mobilizing private capital through coordinated European instruments.
A key aspect of the proposed plan is the establishment of a European investment platform for housing, developed in collaboration with the European Investment Bank and national promotion banks. According to Jørgensen, every euro invested at the European level could generate significantly larger amounts of capital in the market.
Short-term rentals emerged as a focal point in discussions with Parliament. The Commissioner confirmed that he plans to present a legislative proposal later this year that will not ban such practices outright. Instead, it will empower member states and local authorities to mitigate their negative impacts in areas facing housing pressure. Potential tools include limits on the number of rental nights, differentiating between professional and amateur hosts, and tailored schemes for student accommodation.
Data shared by the Commissioner indicates that about 20% of the EU’s housing stock remains unoccupied, prompting cautious reactions from some Members of the European Parliament (MEPs). They highlighted the disparities between urban and rural areas. In this context, Jørgensen mentioned an upcoming European analysis focused on real estate speculation, pointing out the lack of comparable data across member states.
Furthermore, the Commissioner indicated that the European executive is also working on measures to facilitate the mobility of skilled workers and construction materials within the EU. Reducing administrative burdens that affect construction and renovation projects is another goal.
The plan presented by Jørgensen will soon be supplemented by reports from the European Parliament and interinstitutional negotiations in the coming months. These initiatives are part of ongoing discussions regarding the EU’s next multiannual budget and reflect the Union’s increasingly proactive role in traditionally national areas such as housing policy.
In conclusion, the proposed measures signify a significant step in addressing the housing crisis within the EU, equipping local authorities with necessary tools while trying to balance the interests of short-term rentals and local housing markets. The EU is poised to play a more active role in housing, marking a shift in how member states may address these pressing issues in the future.
