Affordable, sustainable, livable: what local governments need from the EU on housing
The housing crisis has become one of the defining societal challenges of the 21st century, affecting communities across Europe: from major cities to rural areas, and reshaping social, economic, and demographic realities. Rising housing costs, homelessness, and chronic underinvestment are undermining equality, cohesion, and sustainability. Addressing this emergency requires integrated, place-based solutions that link housing with services, mobility, jobs, and quality of life. As frontline actors, local and regional governments must be recognised as key partners in Europe’s response, working with national and EU institutions to deliver affordable, sustainable, and inclusive homes for all.
Europe’s housing crisis is felt most sharply where people live, work and study. On 9 April 2026, CEMR’s Housing Task Force brought together local and regional perspectives on how to measure affordability and how to respond to short‑term rentals and accelerate housing delivery.
The discussion comes at a pivotal moment as the European Commission’s European Affordable Housing Plan has placed housing firmly on the EU agenda, and preparations are underway for an Affordable Housing Act aimed at supporting public authorities in addressing pressure in “areas under housing stress”, including through measures linked to short‑term rentals. With the European Parliament also intensifying its work on the housing crisis, the political momentum is clearly rising.
Affordability beyond a single number
A key takeaway following an exchange with Sandra Di Biaggio, Research and Policy Manager at ESPON for a presentation on the project Housing4All, was that affordability is multidimensional. It cannot be reduced to prices alone: income and residual income matter, but so do energy bills, mobility costs, access to services and housing quality. Participants also stressed that data gaps, including limited harmonised income data at the local level, can make comparisons difficult, reinforcing the need for place‑based analysis.
Tailor-made policy mixes
The Task Force discussion underlined that no single instrument can fix affordability everywhere. Housing pressures vary widely from urbanisation and tourism to student demand and financialisation, alongside supply constraints such as rising costs and construction capacity. This calls for policy mixes adapted to local realities, where EU action adds value by enabling conditions (investment, legal clarity, better data, smart simplification) rather than prescribing uniform solutions.
Short‑term rentals and local autonomy
On short‑term rentals, participants highlighted the need for legal certainty for local governments when adopting policies on short-term rentals, without undermining local competence. Overly rigid definitions in the norm risk limiting local capacity to act, especially if rules apply only within narrowly defined “stress areas”. At the same time, better enforcement of existing tools and clearer guidance on what is compatible with EU law could strengthen local action.
Building faster and better. Finally, the Task Force discussed how industrialisation, standardisation and digitalisation in construction, alongside renovation, circularity and energy performance, could speed up delivery while supporting Europe’s climate objectives.
CEMR will continue to bring local and regional perspectives into the EU debate as work progresses towards the Affordable Housing Act (expected for the end of 2026).
Learn more about the CEMR position on Housing
For more information, please contact:
Advisor – Territorial Cohesion & Local Finances
