The European Plan for Affordable Housing – Will It Help Solve the Housing Crisis in the EU?

Here are a few figures that play a significant role in the report adopted by the European Parliament:

• Europe faces a shortage of approximately 10 million housing units.
• In 2025, the demand for new housing units stood at 2.25 million—a full 50% more than the number being built.
• Since 2015, housing prices have risen by over 60%.
• In many major cities, buying a home costs the equivalent of 12 to 15 years’ income.
• Rent already accounts for 30–40% of household income.

The European Plan for Affordable Housing is based on four pillars:

1. More housing on the market – increasing supply by accelerating investment and facilitating the construction of new units.
2. Less bureaucracy – the plan aims to simplify regulations and streamline administrative procedures, which today often block or delay investments.
3. Greater financial support—funds are to go to both private investors and the social and municipal housing sectors.
4. Help for those most in need—those facing the greatest difficulties in accessing housing.

The European Union cannot impose a common housing policy or regulate the real estate market across the entire bloc. However, it can indirectly influence housing by funding initiatives.

• Over €43 billion committed to housing (for 2021–2027).
• An additional €10 billion in 2026–2027.
• Up to €375 billion mobilized by financial institutions by 2029.

What does this mean for the market?

➡Housing is no longer solely a local sector—it is becoming part of the EU’s economic policy
➡The role of institutional capital and systemic models is growing
➡Regulations (energy, ESG, planning) will increasingly influence the value of projects
➡Competitive advantage will stem from the ability to operate within this “European context”

This marks the first time the EU is treating housing not only as a social issue but as a factor influencing economic competitiveness.

Poland is among the countries where housing availability is relatively low. This means that property prices are high relative to wages, and rent often consumes a large portion of the household budget. Therefore, one of the elements of the planned changes is greater support for social and rental housing, which has been scaled back in many countries in recent years.

Will buying and renting apartments become easier? The announced measures will not cause an immediate drop in prices, but they may gradually improve the market situation. A greater number of new developments should increase competition, and simplifying regulations may speed up project implementation.