Changes from report parliamentary committee draft to plenary report

– having regard to the opinion of the Committee on Employment and Social Affairs,

Changed– having regard to the report of the Committee on Regional Development (A10-0000/2025),(A10-0139/2025),

Change 1

RemovedA. whereas between 2015 and 2023, house prices in the EU rose on average by 48 %, mainly due to higher building costs and mortgage rates, a decrease in construction, which limited supply, and the rise in the purchase of properties as an investment to generate additional income;

AddedA. whereas the Member States retain authority over housing policy, although the EU’s legislative and regulatory framework does have a bearing thereon;

RemovedB. whereas in 2023, housing costs in the EU exceeded 40 % of disposable income for 10.6 % of households in cities and 7 % of households in rural areas;

AddedB. whereas access to adequate housing and the right to social and housing assistance is a fundamental human right, enshrined in Articles 7 and 34 of the Charter of Fundamental Rights of the European Union, in line with the UN Convention on the Rights of Persons with Disabilities; whereas housing is essential to the guarantee of human dignity, social inclusion and economic participation; whereas 17 % of Europeans live in homes that do not offer adequate space; whereas the European Pillar of Social Rights has the potential to improve the lives of people in the EU, including through housing policies;

RemovedC. whereas the notion of affordable housing is framed as a ‘housing continuum’, which includes social housing, affordable rental housing and affordable home ownership;

AddedC. whereas in recent years, house prices in the EU have risen on average by 48 %, mainly owing to a sharp increase in construction producer prices for new residences between 2010 and 2023, higher mortgage rates, a decrease in construction and renovation, which has limited supply, a rise in the purchase of properties as an investment to generate additional income, and a lack of adequate policies in the housing market; whereas this situation has been compounded by bureaucratic barriers and insufficient investment in social, affordable, public and not-for-profit housing;

RemovedD. whereas the legal uncertainties regarding EU State aid rules are a major obstacle to investing funds from the European Regional Development Fund (ERDF) in affordable housing;

AddedD. whereas the recent exponential growth of the short-term rental market has negatively affected local communities in popular tourist destinations through a lack of available housing, contributing to gentrification, social exclusion and increased rental prices;

RemovedE. whereas EU cohesion policy (CP) funds and the EIB financing instruments are very important sources of EU investments to increase the supply of affordable housing in the EU;

AddedE. whereas poor planning and design in the public realm, the growth of urban sprawl and inappropriate land use have resulted in reduced building quality across Europe;

RemovedF. whereas cohesion policy investments in housing should be based on a thorough assessment of the housing markets in order to avoid unintended effects, taking into account the needs of the households and the thresholds of affordability, prioritising the livelihoods of the most vulnerable groups and of people with particular needs;

AddedF. whereas the increase in the cost of living exacerbated the housing crisis in 2023, with housing costs in the EU exceeding 40 % of disposable income for 10.6 % of households in cities and 7 % of households in rural areas; whereas the housing cost overburden rate was very high in cities in southern and northern Member States;

RemovedAn overview of the current housing crisis in the EU

AddedG. whereas according to a Eurobarometer survey from July 2024, concerns about rising prices, the cost of living and the economic situation were the main reasons that motivated people to vote in the European elections;

Removed1. Acknowledges that the EU is undergoing a severe housing crisis, which is not just a social issue, as it has far-reaching economic consequences; notes furthermore that, despite the fact that urban areas are particularly affected, the housing crisis is not limited to cities and affects all regions, especially those with permanent geographical handicaps, such as islands, outermost regions and most coastal areas;

AddedH. whereas successful EU and national housing policies should be based on up-to-date, reliable, comprehensive and harmonised data covering house prices, property transactions, beneficial ownership, ownership structures, proportions of public, not-for-profit and private housing, housing quality and environmental impacts;

Removed2. Is convinced that by aligning housing policies with the CP, meaningful progress can be made in tackling the housing crisis and ensuring balanced regional development across the EU;

AddedI. whereas the unaffordability of housing affects a growing proportion of the population and has a disproportionate impact on low- and middle-income households; whereas rapidly rising rents in many regions of the EU are exacerbating housing insecurity and social exclusion, particularly in certain urban centres and tourism-intensive areas;

Removed3. Welcomes the idea to set up an EU platform on affordable housing with the EIB to leverage cohesion policy funds and private investments, and to provide advisory services that embrace all stages of the project cycle and beyond;

AddedJ. whereas measures taken by public authorities to address rent pressures in tourism-intensive areas could contribute to an increase in the supply of affordable housing across the EU; whereas these measures may offer solutions to people who work or study in tourism-intensive areas;

Removed4. Underlines that, in the current context of housing market failure, the CP and financial instruments such as loans, guaranties and equity in affordable housing, should not be accounted for in the excessive deficit procedure of the Stability and Growth Pact and the European Semester;

AddedK. whereas the goal of a carbon-neutral Europe by 2050 at the latest should be coupled with the goal of a fair and just transition; whereas air and water pollution, lack of available water and energy poverty generally remain too high in many less developed regions;

RemovedAn updated cohesion policy 2021-2027 to address the housing crises

AddedL. whereas the ongoing housing crisis across the EU is deepening social exclusion by making access to affordable, adequate, safe, accessible and energy-efficient housing increasingly difficult, especially for vulnerable groups, including ethnic minorities; whereas despite economic growth in several regions, wage levels have not always kept pace with rising housing costs, leading to a growing number of ‘working poor’ who are unable to afford adequate housing; whereas rising costs and the lack of accessible housing have left many individuals and families in these vulnerable groups facing financial strain and instability; whereas this also hinders labour mobility and social participation, particularly for those already at risk of marginalisation;

Removed5. Asks the managing authorities of CP funds at national and regional level to use the opportunity of the mid-term review of the cohesion policy in the programming period 2021-2027 to at least double the planned funds; recommends that the Member States make use of the existing possibilities for transferring allocations between CP funds;

AddedM. whereas the EU is currently falling short of its commitment to end homelessness by 2030 and more efforts are needed to reach this target; whereas the number of people experiencing homelessness in Europe in 2024 is estimated at nearly 1.3 million, including 400 000 children; whereas the overall number has been rising steadily since 2008, driven by a worsening housing crisis and growing inequality that has a disproportionate impact on the most vulnerable and marginalised communities;

Removed6. Calls on the Commission to consider the current lack of housing affordability as a long-term phenomenon and to propose a revision of the ERDF (ERDF-CF Regulation) and the JTF (Regulation EU 2021/1056) in order to allow the Member States to provide targeted investment support to mitigate the negative socio-economic consequences of such a crisis, particularly in cities;

AddedN. whereas the protection of private property is recognised in Article 17 of the Charter of Fundamental Rights of the European Union; whereas the disrespect for property affects communities and small property owners in particular; whereas the public authorities of the Member States bear responsibility for addressing owners’ rights and the housing needs of vulnerable households and families;

Removed7. Suggests furthermore that the Commission include in the revision of the ERDF-CF Regulation new specific objectives on affordable and sustainable housing within policy objective 2 on a greener and carbon free Europe, policy objective 4 on a more social Europe and policy objective 5 on a Europe closer to citizens, in order to finance action on housing shortages, improve the quality of housing and ensure that all citizens have access to affordable and adequate housing;

AddedO. whereas investment in public, social and not-for-profit housing should be excluded from fiscal constraints;

Removed8. Suggests broadening the scope of the ERDF-CF and European Social Fund Plus (ESF+) support beyond the promotion of energy efficiency or renewable energy in housing and social housing, to include innovative approaches that increase affordability, such as community land trust, cooperatives and cost-rent models;

AddedP. whereas persons with disabilities often face disproportionate barriers in accessing affordable and sustainable housing; whereas the lack of accessibility in housing exacerbates social exclusion and prevents persons with disabilities from living independently and fully participating in society; whereas demographic changes in Europe require cohesion policies to prioritise the development of adapted housing to meet the needs of an ageing population and persons with disabilities, ensuring both accessibility and inclusivity; whereas cohesion policy investment should mainstream the disability dimension in all housing programmes to ensure equal opportunities for all citizens;

Removed9. Suggests that the Commission propose an additional amount of exceptional pre-financing with respect to several targeted priorities on affordable housing, and that the investments in housing affordability be considered within the thematic concentration requirements;

AddedQ. whereas there is currently no agreed definition of ‘affordable housing’ across the Member States; whereas the notion of affordable housing at EU level is framed as a ‘housing continuum’, which includes social housing, affordable rental housing and affordable home ownership; whereas this current lack of an agreed definition may be an obstacle to additional investment in this area;

Removed10. Asks the Commission to define a framework of affordable housing eligibility criteria that allow local authorities to delimit the target groups of people who are unable to obtain housing at market conditions and who need ERDF-CF support to access residential accommodation that meets appropriate quality standards and is provided at below market prices;

AddedR. whereas EU policies indirectly influence housing through regulations on energy efficiency requirements, environmental sustainability, competition and State aid and EU laws affecting the costs and speed of construction;

Removed11. Notes that combining ERDF-CF and JTF grants with EIB financial instruments can contribute to increasing the leverage effect of investments and access to finance for real estate promoters, builders and final beneficiaries;

AddedS. whereas social housing comprised over 14 million dwellings or 8 % of the total housing stock in the EU in 2021; whereas the share of social housing in the total housing stock has decreased by 3 percentage points since 2010, although the number of vulnerable people, including homeless people and migrants, has increased significantly; whereas this decline is related to a slowdown in the construction of new social housing and the privatisation of the existing stock, whereby social dwellings are converted into market-rate rental housing;

Removed12. Encourages the Commission and the EIB to include strict, transparent, inclusive and fair allocation mechanisms, as well as social and sustainable conditions for the beneficiaries of EU funds and financial instruments; stresses that, as far as possible, public ownership should be maintained in order to increase the public housing stock;

AddedT. whereas access to land is a fundamental prerequisite for the development of affordable and not-for-profit housing; whereas the Member States and local authorities play a key role in shaping land use through urban planning and regulatory instruments; whereas appropriate mechanisms of control must be developed and implemented to ensure that an adequate proportion of land is reserved for not-for-profit and affordable housing projects; whereas such measures are crucial in challenging speculative pressures and ensuring the long-term sustainability, affordability and inclusiveness of urban development;

AddedU. whereas the legal uncertainties and red tape regarding EU State aid rules are a major obstacle to investing funds from the European Regional Development Fund (ERDF) in affordable housing, and a reform of its 2011 Decision on the Service of General Economic Interest (SGEI) should be conducted by the Commission to broaden the scope of the rules beyond social housing and to contribute to housing affordability;

AddedV. whereas EU cohesion policy (CP) funds and the EIB financing instruments are very important sources of EU investment to increase the supply of social and affordable housing in the EU and its regions, promoting integrated interventions to ensure both greater affordability of housing and social cohesion at urban and rural levels; whereas the total EU support of EUR 7.5 billion allocated to housing under the CP represents approximately 2 % of the total CP allocation of EUR 379 billion for the 2021-2027 period; whereas the CP alone cannot resolve the current housing crisis, as, according to the economic analysis performed for the EIB Investment Report 2024/2025, the investment gap in affordable housing is estimated at EUR 270 billion per year; whereas CP funds should be deployed strategically and with efficient and transparent procedures; whereas public funds should be complemented by attracting private investment;

AddedW. whereas CP investment in housing should be based on a thorough assessment of the housing markets in order to avoid unintended effects, taking into account the needs of households and the thresholds of affordability, prioritising the livelihoods of the most vulnerable social groups, namely, among others, persons with disabilities, people experiencing homelessness, those living in inadequate or insecure housing and people with particular needs, including women, young and elderly people, single parents, low- and middle-income workers, households and families;

AddedX. whereas social and affordable housing is primarily financed by national, regional and local authorities, as well as end users of the homes; whereas EU funding instruments are often too complex or poorly adapted to local needs, limiting access for cities and municipalities; whereas this disconnection hampers the effective implementation of housing policy, especially for vulnerable groups; whereas local and regional authorities, as key actors in social and economic development, should be fully involved in shaping CP investment in housing;

AddedY. whereas CP is the EU’s main investment tool for sustainable economic and social development across the EU, and contributes significantly to the fight against climate change and to the European Green Deal, as well as to meeting the sustainable development goals (SDGs); whereas the construction sector should adopt circular and regenerative models; whereas buildings account for around 40 % of EU energy use and 36 % of CO₂ emissions, making their decarbonisation through large-scale renovation essential; whereas rising housing and energy costs highlight the urgent need for affordable, public or not-for-profit housing and for deep renovation to reduce energy poverty; whereas such investment must support green, climate-friendly solutions and align with EU environmental objectives;

AddedZ. whereas the European Climate Law includes a legal objective for the EU to reach climate neutrality by 2050, setting the intermediate target of reducing net greenhouse gas emissions by at least 55 % by 2030 compared to 1990 levels;

AddedAA. whereas Parliament has called for solutions to improve the legislative and funding framework at EU level to ease investment in social and affordable housing and secure the right of free movement and the right to stay for every citizen;

AddedAB. whereas according to 2021 Eurostat data, 49 % of young people aged 18-34 in the EU were living with their parents, due to high housing costs, difficulty in accessing mortgages and job insecurity, highlighting the need for policies to address housing insecurity, and only 17 % of students had access to student accommodation; whereas this housing crisis delays young people’s transition to adulthood, limits their development and affects intergenerational equity; whereas CP should support the principle of right to stay, in particular for young people, by improving access to affordable housing;

AddedAC. whereas brain drain continues to disproportionately affect less developed regions, with long-term consequences for the EU’s cohesion and future; whereas investing in housing renovation and essential services in rural areas is key to preventing rural flight and retaining talent;

AddedAD. whereas the current crisis of housing affordability has been aggravated by the COVID-19 pandemic and Russia’s war of aggression against Ukraine, which have put additional pressure on housing costs through increases in input costs and supply chain disruptions; whereas the gap between housing supply and demand has been exacerbated by the significant role played by speculators in driving up housing prices and creating housing bubbles, as well as a lack of public investment in affordable and social housing in the last decades;

AddedAE. whereas the New European Bauhaus (NEB) promotes a new paradigm for the built environment based on beauty, sustainability and togetherness through architecture, design and spatial planning; whereas in the light of the climate crisis, social inequalities, rising living costs and the impact of war and natural disasters, the NEB should also serve as a tool to reimagine and adapt our public and private spaces to current and future challenges;

AddedOverview of the current housing crisis in the EU

Added1. Acknowledges that the EU is undergoing a severe housing crisis which is not just a social issue but also an economic challenge, exacerbating existing inequalities and hindering the fulfilment of citizens’ fundamental rights; notes furthermore that, despite urban and industrial areas being particularly affected, the housing crisis extends across all regions, especially to those with permanent geographical handicaps such as rural and inland areas, islands, outermost regions, border regions with high commuting populations, and coastal and remote areas, in particular those at risk of demographic decline; underlines the need for tailored solutions and CP investment that addresses their specific needs and reflects their unique socio-economic and geographical conditions, while also respecting the right to stay of citizens who wish to remain in their home regions, as housing is essential to the guarantee of human dignity, social inclusion and economic participation; notes that the lack of adequate housing can discourage workers from entering the regional labour market and contribute to regional development traps;

Added2. Recognises that the housing crisis does not manifest itself in a uniform manner throughout Europe, but varies significantly between regions; notes that the EU’s rural areas cover 83 % of the EU territory and are home to approximately 137 million people; highlights the fact that these people are facing immense challenges in housing, notably relating to the condition of the existing housing stock, limited access to new construction, and depopulation; acknowledges the fact that the lack of public infrastructure in rural areas, including housing, diminishes the attractiveness of these areas for citizens and emphasises that CP might be a meaningful tool in attracting Europeans to the rural areas, notably by addressing the housing shortages and the demographic change, including an ageing population; highlights the unique housing challenges encountered by medium-sized and small municipalities, such as constrained access to financial resources, inadequate infrastructure and limited institutional capacity; proposes, in this context, to increase the availability of adapted housing for persons with disabilities and older people, fostering independent living while promoting social interaction, intergenerational support and a sense of community to combat undesired loneliness; calls, therefore, on the Commission to develop targeted strategies under CP to address the specific challenges faced by rural areas, such as vacant buildings, and the need for energy-efficient renovation, net-zero housing and the promotion of multigenerational housing models, in order to prevent rural depopulation and ensure territorial cohesion, thus providing beneficiaries with the conditions necessary to exercise their right to stay;

Added3. Emphasises that the housing crisis in the EU is particularly severe on islands and in outermost regions, where structural and geographical constraints, speculative pressure from tourism and the lack of public housing aggravate the situation; stresses the need for CP measures tailored to these specific realities, in line with Articles 174 and 349 TFEU; underlines that islands face permanent handicaps that hinder territorial, social and economic convergence, requiring strengthened cohesion funding and targeted housing policies; highlights the fact that investment in housing must be accompanied by improved infrastructure in health, education, public services and connectivity to make islands and outermost regions attractive and ensure the right of people to remain there;

Added4. Is convinced that, by aligning housing policies with CP, meaningful progress can be made in tackling regional and social disparities, demographic challenges and the housing crisis and in ensuring balanced regional development across the EU and its cities and regions; stresses that CP is not the only solution to the housing crisis and that we must explore other instruments and sources of EU funding and private investment, including the EIB, that can help address the crisis; emphasises the need to incentivise private sector involvement and property investment to increase housing availability;

Added5. Calls on the Commission and the Member States to stimulate public-private partnerships in housing construction projects, including infrastructure development on viable land and the reutilisation of underused public buildings, making full use of CP funds and other financing instruments supported by the EIB; supports the creation of a dedicated EIB investment facility to fund affordable, sustainable housing construction and renovation and improvements in energy efficiency; recommends, furthermore, the development of incentives and innovative financial tools to leverage private sector investment alongside public funding in affordable housing projects; stresses the importance of ensuring that EU funding mechanisms provide adequate financial support for landlords, small property owners, and developers to upgrade existing housing stock and expand the availability of affordable housing, while maintaining a balance between public and private sectors;

Added6. Welcomes the Commission’s announcement on the establishment, under the upcoming European affordable housing plan, of an EU investment platform for affordable and sustainable housing, with the EIB partnering with Europe’s national promotional banks and international financial institutions in order to develop new financing opportunities for affordable and sustainable housing, to leverage additional CP funds, national, regional and local budgets, public and private investment and to provide advisory and tailor-made services and support that embrace all stages of the project cycle and beyond; underlines that this platform should be coordinated with the European Platform on Combatting Homelessness (EPOCH) in order to strengthen the fight against homelessness through integrated strategies at EU level; recommends that the EIB collaborate with CP managing authorities to develop financial instruments that ensure long-term investment in social and affordable housing; emphasises that not-for-profit property developers and cooperatives and local authorities should have access to long-term loans at low interest rates in order to support the development of affordable and social housing;