Rebuilding Europe’s housing market

On a morning in a European city, a young couple living in a tiny apartment scrolls through property listings. Both have stable jobs. They did what they were told by society: study hard, find a decent job and save money. And yet, they are leaving their apartment soon. Not because they found a nicer place to live, but because they are forced to leave. Rent has increased. Again. Buying is not an option. That would cost them all their savings. Not only is this couple forced to leave their apartment, but they are also forced to leave the city they loved for so long. The place where they pictured their future. 

Across the EU, housing is no longer “just expensive”. It has become unaffordable for millions of young Europeans. Since 2010, house prices have risen by over 60% and rents by 30%. In many cities, couples spend almost half of their income simply to keep a roof over their heads. For first-time buyers, this barrier has become impossible to bridge. 

The challenges facing EU member states vary. While short-term rental housing creates pressure in Southern Europe and a housing shortage in Central Europe, the challenges in the Baltic states are entirely different, including residential buildings constructed during the Soviet occupation that no longer meet quality standards. Similarly, it is difficult for young people to buy their first home—bank requirements are too high. For seniors and families, heating bills in uninsulated buildings are a heavy burden, while regions often lack funding.

Recently European Parliament adopted its final - and first-ever - report on the housing crisis in the EU. The analysis is clear: we don’t just have a housing crisis, we have a housing supply crisis. 

It is high time for a new housing deal for European citizens. Driven by the initiative of the EPP Group, the European Parliament finally calls on the European Commission to come forward with a Housing Simplification Package. In some countries, such as Cyprus, Slovakia, and Romania, obtaining a building permit can take up to a year, which is unacceptable. The process of obtaining a permit should not take longer than 60 days. 

Affordability is not an abstract idea: it is about whether young couples can start a family. Whether nurses, teachers or police officers can live near the people they serve. That is why we call for simpler procedures and lower housing costs. Buying or renting your first home should not feel like climbing a mountain of paperwork. 

Predictable rules are equally important. Legal certainty for both owners and tenants encourages an increase in supply. There is no one-fits-all solution. Housing markets differ greatly between Member States and regions. Subsidiarity must remain the guiding principle. Europe should help remove obstacles and support investments. Local, regional and national governments are still best placed to work out the details. 

That is why the EPP Group sets clear priorities: simpler rules, faster permits, more land made available and targeted support for those who need it most - all with respect for national competences. We have laid the first stone. Now it is time to build the structure.