The European Commission presented on Wednesday the Affordable Housing Law, a regulation aimed at stopping the rise in house prices and expanding housing supply in cities across the European Union. Commission President Ursula von der Leyen stated that the measure will provide more clarity and support to local authorities, anchored in local realities. The European Commissioner for Energy and Housing, Dan Jørgensen, emphasized the need to make better use of existing homes, giving Member States and cities tools to provide more affordable housing in the areas most affected by the crisis.
The data justifying the urgency of the proposal is concerning. A Eurobarometer survey reveals that 40% of Europeans see housing as an immediate problem, rising to 51% among those living in urban areas. In Portugal, 43% of Portuguese citizens point to housing as their main concern, 23 percentage points above the European average, with the Algarve leading (48%), followed by Lisbon and Madeira (both at 45%). Brussels also illustrates the imbalance with concrete examples: in Madrid there are 40 short-term rentals for every 100 homes in the long-term rental market, and in Zagreb more than 19% of properties remain vacant.
The new regulation creates for the first time a common legal framework to guide municipalities without conflicting with single market rules. The established rules include mandatory diagnosis with concrete data, proportionality of measures, limited duration of five years with periodic review, and legal certainty without retroactive effects. The Commission also recommends that Member States create Housing Acceleration Plans with shorter licensing timeframes, including the goal of decisions within 60 days, and the conversion of vacant buildings for residential purposes. The Commission estimates that an additional 150 billion euros per year are needed to meet housing needs over the next decade.
The Affordable Housing Law now goes to negotiation in the European Parliament and Council, under the ordinary legislative procedure, forming part of the European Affordable Housing Plan. Brussels insists that the goal is not to impose a one-size-fits-all model, but to give European cities common tools to face a problem that threatens social cohesion and the bloc's competitiveness across the board. Teresa Ribera, Executive Vice-President for the Clean, Fair and Competitive Transition, stated that when the market fails to deliver something as fundamental as an affordable home, public authorities have the responsibility to act.
