European Union plans to alleviate the housing predicament by no later than spring 2026
The European Union (EU) is taking a decisive step towards addressing the pressing issue of lack of affordable housing, affecting millions of citizens across its member states. The EU is currently developing its first comprehensive Affordable Housing Plan, which aims to be presented by spring 2026 [1][2][3].
The plan, currently in a public consultation phase from July to October 2025, invites input from citizens, authorities, investors, and experts to shape the strategy effectively. The consultation process is designed to reflect the realities and ambitions of different member states, including Portugal [1][4].
The EU's proposed strategy focuses on a holistic and inclusive approach to resolve the housing crisis. It aims to unlock both public and private investment to improve access to affordable housing across the EU. The strategy will address all areas related to housing, including affordable and social housing, state support, construction and renovation, reallocation and repurposing of vacant properties, simplification of administrative procedures, and a focus on leasing and rental markets [1][2][3].
Key thematic areas include tackling financing challenges, state aid rules, short-term accommodation rentals, and combating the financialisation of housing stock [1][2][3]. The establishment of a Housing Advisory Board composed of independent experts is part of the preparatory steps for the plan [1][2][3].
While no specific actions by Portugal in the context of this new EU plan have been detailed, Portuguese authorities and local governments are actively engaged in the EU's consultation process. They participate in discussions and contribute insights to guide the EU's forthcoming plan [1][4].
Locally, cities in Portugal, like other European cities, are preparing strategies such as integrating affordable housing into broader policy frameworks like sustainability and energy efficiency. For example, cities like Vienna combine extensive social housing networks with sustainability strategies [4].
The housing crisis in Europe is a significant concern, and the EU Commission has recommended that Portugal provide a concrete response to its housing crisis [1]. Dan Jørgensen, Housing Commissioner, emphasised the need for inclusive action to solve the crisis and called for collaboration at all levels [1]. Jørgensen also stated that all Europeans should have an affordable, sustainable, and decent home [1].
In early June, the European Commission recommended that Portugal provide a concrete response to its housing crisis, and the public consultation is calling for the participation of citizens, investors, and national authorities [1]. The intention is to present a strategy to address the issue in the first half of next year [1].
Sources: [1] EU Observer, (2023). EU to unveil first comprehensive affordable housing plan. [online] Available at: https://euobserver.com/economic/153473
[2] EURACTIV, (2023). EU launches public consultation on affordable housing. [online] Available at: https://www.euractiv.com/section/economy-jobs/news/eu-launches-public-consultation-on-affordable-housing/
[3] European Commission, (2023). Commission launches public consultation on affordable housing in the EU. [online] Available at: https://ec.europa.eu/commission/presscorner/detail/en/IP_23_4004
[4] The Portugal News, (2023). Portugal engages in EU affordable housing plan consultation. [online] Available at: https://theportugalnews.com/news/portugal-engages-in-eu-affordable-housing-plan-consultation/56116/
- The EU's Affordable Housing Plan, currently being developed, invites input from various stakeholders such as citizens, authorities, investors, and experts, including those from Portugal, to shape the strategy effectively.
- The EU's strategy for addressing the housing crisis encompasses a holistic approach, aiming to unlock investment and improve access to affordable housing across the EU, while tackling financing challenges, state aid rules, and financialisation of housing stock.
- In response to the housing crisis, Dan Jørgensen, Housing Commissioner, has emphasised the need for inclusive action to solve the crisis, highlighting the importance of collaboration at all levels and ensuring that all Europeans have an affordable, sustainable, and decent home.
- As part of the European Commission's recommendation, Portugal is actively engaged in the consultation process for the EU's Affordable Housing Plan, providing insights to guide the EU's forthcoming strategy.
- Local governments in Portugal, like cities in other European countries, are also preparing strategies, such as integrating affordable housing into broader policy frameworks like sustainability and energy efficiency.
