The EU has adopted a housing plan. Will it fix the crisis?

On March 10th, MEPs voted 367 to 166 in favour of recommendations from the Special Committee on the Housing Crisis. The report is not legally binding, but it is the first time Europe has created a housing roadmap for the whole bloc.

The numbers show the scale of the problem. Europe is short about 10 million homes. Rents have gone up by more than 30 percent across the EU. The European Investment Bank says the EU will need 2.25 million more homes in 2025 alone, which is 50% more than are being built now.

The Parliament wants the Commission to reduce bureaucracy, change tax rules, and use more EU funds for building and renovating homes. In response, the Commission has announced an Affordable Housing Plan with about €10 billion from InvestEU.

But there’s a ceiling to what Brussels can do. The EU cannot set tax rates, change national zoning laws, or require countries to build more homes. Real price relief probably will not come before 2027. Now, it is up to the Commission and the 27 member governments to act.