Cities, towns and regions call for investment, smart simplification and local autonomy as Europe steps up its response to the housing crisis
Europe’s housing initiatives will only succeed if they reflect the realities faced by cities, towns, and regions. This was the central message from the latest meeting on 3 September of the CEMR Housing Task Force, which brought together participants from 12 national associations of local and regional governments, alongside representatives of the Irish government and the European Commission.
During the meeting, CEMR Task Force members exchanged experiences from across Europe and discussed two major initiatives expected to shape the EU housing agenda: the forthcoming Affordable Housing Act and the Housing Simplification Package. The discussion enabled CEMR members to provide early feedback directly to EU policymakers and help prepare CEMR’s contribution to the European Commission’s ongoing call for evidence on housing simplification.
Housing: high on the European agenda
The meeting opened with an exchange on the housing priorities of the Irish Presidency of the EU. Ireland plans to build on the political momentum generated by previous presidencies, with housing supply, affordability and homelessness among the priorities under discussion. Participants also heard about plans for stronger European cooperation, including a pan-European housing investment platform and the recently established European Housing Alliance, which aims to promote networking and the exchange of good practices.
CEMR members stressed that local and regional governments must have a meaningful place in this emerging European architecture, including in ministerial discussions and stakeholder events. They also expressed strong interest in financial solutions capable of supporting long-term public and affordable housing investment, such as revolving funds.
Simplify delivery is not deregulation
The European Commission’s forthcoming Housing Simplification Package, expected in the second quarter of 2027, offers an opportunity to remove unnecessary costs, delays, and inconsistencies affecting housing delivery. EU rules on procurement, State aid, environmental assessment, energy performance, taxation, and construction standards can all influence what local and regional governments are able to deliver.
CEMR Task Force members nevertheless cautioned that simplification must not become deregulation. Environmental protection, building quality, and citizen participation remain essential. The objective should be to resolve conflicts and duplication between policies while preserving their public interest goals.
Above all, participants called for respect for municipal autonomy over zoning, local taxation, permitting, and development plans. Definitions of affordability, housing stress, and priority groups must reflect local conditions rather than rely exclusively on uniform indicators or datasets that may not capture realities on the ground.
Direct dialogue on the Affordable Housing Act
In an exchange with Matthew Baldwin, Deputy Director-General at the European Commission and Head of its Housing Task Force, members discussed how the forthcoming Affordable Housing Act could provide greater legal clarity for public authorities in areas experiencing severe housing pressure. Members welcomed efforts to reduce legal uncertainty but stressed that Member States must allow the competent local and regional authorities to play a decisive role in assessing housing pressure and choosing the appropriate response.
Short-term rentals are not the sole cause of Europe’s housing crisis. Nevertheless, in some territories, the combined effects of tourism, vacant homes, and insufficient supply can intensify local pressures. Cities need clear and workable legal tools to act where necessary, without new administrative burdens or EU interference in local decisions.
Different housing markets, shared barriers
The meeting also featured a national roundtable, which showed the diversity of housing markets and challenges across Europe. Members reported ambitious construction targets, rising development costs, high mortgage rates, shortages of public funding, and difficulties financing renovation in lower-value areas. Severe pressure on municipal budgets is also limiting the ability of local governments to build and maintain public and social housing.
Despite these differences, common priorities emerged: stable and accessible finance, stronger construction capacity, support for renovation, and policy frameworks that allow local authorities to respond to their own housing markets.
Participants also highlighted the social dimensions of the crisis. Housing policies should better address homelessness and the needs of people at particular risk, including women experiencing domestic violence. Tackling skills shortages in construction, while opening the sector to a more diverse workforce, was identified as another important area for future work.
Turning local expertise into European influence
The meeting’s conclusions will feed directly into CEMR’s response to the European Commission’s call for evidence on the Housing Simplification Package. By bringing together evidence from its members and maintaining a direct dialogue with the European Commission and Council presidencies, CEMR is ensuring that local and regional experience informs European decisions from their earliest stages.
As the EU develops its housing agenda, CEMR will continue to advocate for a simple principle: local and regional governments must be trusted, financed, and fully involved if Europe wants to turn housing ambitions into affordable, sustainable, and inclusive homes.
Advisor – Territorial Cohesion & Local Finances
