EU affordable housing plan gathers pace as cost pressures hit households
Rising rents and house prices push housing up the EU political agenda, with new measures aimed at supporting affordability and supply
04 February 2026 | 📧 editor@ipropertyradio.com
Housing affordability has become a defining cost-of-living issue across the European Union, with sharp increases in house prices and rents placing sustained pressure on households. According to the Council of the European Union, average house prices across the EU have risen by up to 60 per cent since 2015, with some member states recording increases of more than 200 per cent over the same period. In many cities, housing costs now consume a disproportionate share of household income, with some renters spending more than 40 per cent of earnings on accommodation.
The Council notes that housing costs account for almost one-fifth of average household expenditure across the EU, contributing to financial strain, delayed household formation and reduced labour mobility. While housing systems differ significantly between member states, the affordability challenge is increasingly shared, affecting both homeowners and renters in urban and regional markets.
Housing policy remains primarily a national competence, but EU leaders have acknowledged the cross-border economic and social impacts of the crisis. In response, the European Commission has been tasked with developing a European Affordable Housing Plan, aimed at supporting member states through financing tools, regulatory support and coordination on best practice. The plan is intended to complement national housing strategies rather than replace them.
In early February 2026, housing ministers from across the EU met to discuss the Commission’s proposals, with broad agreement on the need for EU-level action to support supply, particularly affordable and sustainable homes. Ministers highlighted demographic pressures, skills shortages and access to housing for young people and lower-income households as shared concerns.
EU advisory bodies have also called for stronger intervention. Both the European Economic and Social Committee and the Committee of the Regions have argued for increased public investment in housing, greater flexibility in state aid rules and a stronger role for local and regional authorities, reflecting the place-based nature of housing delivery.
For consumers in Ireland, the EU’s focus on housing affordability signals growing political recognition of the scale of the problem, although delivery will continue to depend on national policy choices and local implementation. As the European Affordable Housing Plan moves from strategy to action, its impact will be judged by whether it can meaningfully support the supply of homes and ease cost pressures facing households across the Union.
