EU Housing Task Force sets out four pillars for tackling Europe’s affordability crisis
European Commission plan focuses on supply, investment, reform and protection for the most vulnerable
7 March 2026 | 📧 editor@ipropertyradio.com
The European Commission’s Housing Task Force has outlined a four-pillar strategy aimed at addressing the housing affordability crisis affecting Ireland and most EU Member States.
Speaking on the Property Round-Up podcast on iProperty Radio, hosted by Carol Tallon, Matthew Baldwin, Head of the European Commission’s Housing Task Force, said the crisis is now firmly at the top of the political agenda across Europe.
“It’s a collision between supply and demand, with real people caught in that squeeze,” Baldwin said. “More than a million people across Europe are now experiencing homelessness, and even more feel at risk of that.”
The task force was established just over a year ago following a decision by European Commission President Ursula von der Leyen to elevate housing policy within the Commission. A dedicated Housing Commissioner was appointed and the task force was tasked with developing the first European Affordable Housing Plan, which was published in December.
Baldwin said the initiative recognises that while housing remains primarily the responsibility of Member States, the EU can support national responses by facilitating investment, policy coordination and knowledge sharing.
“Housing is primarily an issue for Member States, regions and cities,” he said, referencing the Commission President. “But if it is an issue for Europeans, then it is also an issue for Europe.”
The Commission’s plan is structured around four main pillars.
The first focuses on increasing supply, including improving productivity in the construction sector and encouraging modern methods of construction such as modular and off-site building. Baldwin noted that productivity growth in the construction sector has lagged behind other industries across Europe for more than a decade.
“We know the construction industry is struggling. Productivity growth has been slower than almost any other sector in Europe,” he said.
He also highlighted the need to make better use of existing housing stock, pointing to an estimated 20% vacancy rate across the EU and growing interest in converting commercial buildings to residential use.
The second pillar addresses investment, including plans for a pan-European housing investment platform involving institutions such as the European Investment Bank and national development banks. The Commission is also adjusting state aid rules to make it easier for Member States to invest not only in social housing but also in affordable housing for middle-income workers.
“In the past we focused heavily on social housing, but there is a growing group of people who do not qualify for social housing and cannot afford the market,” Baldwin said.
The third pillar centres on regulatory reform and simplification. The Commission plans to examine EU legislation to identify unintended barriers to housing supply while encouraging Member States to review national planning and permitting systems.
Over the past decade, Baldwin noted, construction permits across the EU have fallen by around 21%, despite the worsening housing shortage.
“This is about simplification, not deregulation,” he said. “We are not looking to undermine social or environmental protections, but we do need to address unintended consequences that slow down housing delivery.”
The fourth pillar focuses on supporting vulnerable groups, including young people, students and those experiencing homelessness. The Commission is preparing further recommendations linked to its forthcoming EU anti-poverty strategy.
“If young people are forced to remain living with their families into their late twenties or thirties because they cannot afford housing, that has social and economic consequences,” Baldwin said.
During the interview, Tallon highlighted the scale of the housing crisis in Ireland, noting that recent data shows house price inflation running close to double the EU average and rent increases roughly three-and-a-half times higher.
Ireland has also recently recorded more than 17,000 people in emergency accommodation, including over 5,000 children, while social housing output reached a record level in 2025 with more than 9,000 homes delivered.
Baldwin acknowledged the progress made in increasing supply while stressing that housing affordability remains a continent-wide challenge.
“Ireland is not alone,” he said. “Similar pressures are being felt across most Member States.”
Looking ahead, Baldwin said further EU initiatives will emerge over the coming months, including work on an Affordable Housing Act, state aid reforms and collaboration between cities through a new Housing Alliance.
The European Commission is also encouraging greater collaboration between governments, industry and local authorities as part of a broader European response to the crisis.
“We want Member States and cities to learn from each other,” Baldwin said. “There must be better ways of sharing ideas and tackling this housing crisis right across Europe.”
