A local housing plan to strengthen the role of cities, towns and regions in addressing Europe’s housing challenges
Europe’s housing crisis has reached unprecedented levels, with direct consequences for citizens living in towns, cities and regions across the continent. The European Commission’s EU Affordable Housing Plan is a meaningful step forward, but it will only deliver if the full potential of local and regional governments is unlocked.
CEMR’s new position paper, “A local plan for housing”, sets out proposals to the EU Affordable Housing Plan, arguing that Europe’s ambitions will only translate into real results if towns, cities and regions are fully empowered to act.
To make this happen, CEMR identifies four priorities that must be unlocked so local and regional governments can deliver on the ground:
1. Mobilise investment where it matters most
Inadequate and unpredictable funding is one of the main barriers to expanding affordable and sustainable housing for towns, cities, and regions. Local and regional governments need long‑term investment frameworks. CEMR calls for:
- Simpler and wider access to EU and national funding, including cohesion policy and EU budget 2028-2034 instruments, so municipalities of all sizes can plan and deliver.
- Reforms to fiscal rules and modernisation of State aid, treating affordable and energy‑efficient housing as long‑term investment rather than ordinary expenditure.
- Support to strengthen construction capacity and innovation, from skills to circular, climate‑resilient building and renovation.
2. Enable faster and more coherent planning to accelerate delivery
Fragmented, complex procedures delay urgently needed homes across Member States. CEMR urges EU and national authorities to:
- Streamline planning and environmental assessments, reducing duplication while upholding strong sustainability standards.
- Enable place‑based approaches, giving towns, cities and regions the flexibility to access land, regenerate brownfields and plan integrated, inclusive neighbourhoods.
- Advance the single market for construction, harmonising technical standards to reduce delays, boost innovation and lower costs.
3. Improve efficiency through digital permitting
Digital permitting can bring faster renovation and new construction, but many local and regional governments lack resources to implement it. CEMR calls for:
- Dedicated funding, training and technical assistance are needed for interoperable local–national–EU permitting systems.
- Clearer guidance for applicants and developers will improve submission quality.
4. Activate Europe’s full potential through a real multilevel partnership
The EU Affordable Housing Plan will only succeed through genuine cooperation across levels of government. CEMR asks for:
- Structured multilevel governance, with local and regional governments fully involved in design, implementation and monitoring.
- Stronger municipal autonomy and legal clarity, ensuring responsibilities are matched with financing.
- Adequated resources for the European Housing Alliance with structured participation of local and regional governments, which also serves to cooperate beyond the EU to address shared housing challenges.
Europe’s housing challenge demands swift and coordinated action. The EU Affordable Housing Plan sets an important framework, but its success will depend on how well it empowers the governments closest to citizens. By unlocking investment, planning flexibility, digital efficiency and genuine multilevel governance, Europe can move from ambition to delivery.
CEMR’s “Local Plan for Housing” offers a clear pathway: start locally, invest wisely and collaborate across levels of government. Only by working through cities, towns and regions can Europe ensure that affordable, sustainable and inclusive homes become a reality for all.
For more information, contact:
Director – Policy & Impact
