The European Commission formally adopted the Affordable Housing Act this week, unveiling a new framework designed to help national, regional, and local authorities across the bloc address worsening housing affordability, particularly in cities facing the most intense pressure on rents and property prices. Commissioner for Energy and Housing Dan Jorgensen presented the proposal at a press conference in Brussels, describing the housing crisis as an urgent problem demanding immediate action.
At the heart of the new framework sits a set of criteria defining what officials call areas under housing pressure, giving local authorities the option to introduce restrictions on short term rentals in locations where the practice is exacerbating affordability problems. Jorgensen cited striking figures to underscore the scale of the crisis, noting that rents have climbed fifty nine percent in Berlin, seventy five percent in Madrid, and one hundred three percent in Lisbon over just the past decade.
According to Jorgensen, fifty one percent of city residents across the European Union now consider the lack of affordable housing an urgent and immediate problem, reflecting just how widely the crisis has spread across member states regardless of their broader economic circumstances. The commissioner emphasized that while short term rental platforms of the Airbnb variety represent one visible symptom of the crisis, the underlying issue remains a more fundamental imbalance between housing supply and demand across many European cities.
Responsibility for housing policy formally remains with individual member states rather than the European Union itself, and Commission officials have been careful to stress that the Act does not impose new housing policies directly on national governments or cities. Instead, the legislation aims to provide a common legal framework that authorities can voluntarily draw upon when choosing to intervene in their local housing markets, respecting the principle of subsidiarity that governs how much authority Brussels can exercise over policy areas traditionally left to national discretion.
Commission President Ursula von der Leyen described the measure as fulfilling a longstanding promise to address housing affordability, calling it one meaningful step toward tackling a crisis affecting communities across the continent. Some commentators and housing policy analysts have questioned whether the legislation’s relatively cautious scope matches the ambitious language used by Commission officials during the announcement, noting that the Act primarily delivers a legal framework for voluntary local action rather than mandating specific interventions.
The Affordable Housing Act builds on the broader European Affordable Housing Plan the Commission presented earlier this year, which also included the launch of a European Housing Alliance designed to facilitate cooperation and best practice sharing among governments, cities, and housing stakeholders across the continent. That alliance brings together national, regional, and local authorities alongside representatives of tenants, property owners, and young people specifically affected by housing affordability challenges.
Beyond the short term rental provisions, the broader housing plan includes commitments to support young people, students, and essential workers through measures like pilot guarantee schemes aimed at reducing or eliminating security deposit requirements. The Commission has also committed to addressing homelessness through a separate Council Recommendation on fighting housing exclusion, presented earlier this year alongside the EU’s first ever anti poverty strategy.
As the Affordable Housing Act now moves through the European Parliament and Council under the bloc’s ordinary legislative procedure, its final form remains subject to amendment and negotiation among member states. With housing affordability ranking among the most pressing concerns for European city dwellers, the coming months of legislative debate will determine how much practical impact this framework ultimately delivers for renters and prospective homeowners struggling across the continent’s most pressured housing markets.
