The European Commission calls it the Affordable Housing Act and says it can “truly bring a change in people’s lives”. But how much will it actually do to make housing more affordable, asks Catherine Feore? 

The tension at the heart of the proposal is that Brussels is making ambitious claims about tackling the housing crisis while simultaneously making clear that it is not imposing new housing policies on governments or cities.

Commission President Ursula von der Leyen says the measure fulfils a promise to tackle housing affordability, describing it as “one step in this direction” and declaring: “Today, we are delivering for all Europeans.” Housing Commissioner Dan Jørgensen went further, saying the Act gives governments and cities tools to “make more affordable homes available”.

Yet the proposed legislation itself is considerably more cautious.
The Commission acknowledges that insufficient housing supply is the structural cause of the affordability crisis. Short-term rentals, second homes and other non-primary uses are not the root problem, although they can exacerbate shortages and push up prices in already constrained markets.

Housing stress test

The Act principally delivers a common legal framework for authorities that choose to intervene.

Central to this is a new EU test for housing stress. An area would normally qualify where an average home costs at least eight years of disposable per-capita income, that ratio has increased over the previous decade, and pressures are unlikely to ease over the next three years. At a ratio of ten or more, the historical deterioration test is dropped. Population dynamics, housing supply and demand must also be assessed.

Authorities could then restrict short-term rentals outside a host’s primary residence or tackle second homes, prolonged vacancy and certain other non-primary uses. But there is no obligation. They must also demonstrate that the activity has significantly harmed housing affordability or availability for at least three years, and any restriction must be targeted, necessary and proportionate. This seems to set a high bar of evidence for most local authorities.

Currently, local authorities must notify the Commission of short-term rental restrictions under the Services Directive. That notification requirement will no longer be required. Cities can use the new framework without seeking prior Commission approval, although measures must be published and remain open to legal challenge. Officials argue this will remove a burdensome procedure and make intervention easier.

But the Commission is equally explicit about what it is not doing. The Act does not regulate rents, harmonise housing policy, give Brussels new housing competences, dictate taxation, inheritance or planning, or require, recommend or encourage authorities to impose restrictions. Housing policy choices “remain national, regional and local”.

Executive Vice-President Teresa Ribera says that when markets fail to provide affordable homes, “public authorities have a responsibility to act”. But the Act does not compel that action; it provides a stronger legal framework if authorities choose to act independently.

Its impact could be real in tourist hotspots where non-primary housing use is demonstrably worsening shortages. But it cannot itself build a home or lower a rent. The question is whether a clearer legal toolbox matches the expectations created by the Commission’s promise to tackle Europe’s housing crisis. When asked to quantify how much of a difference the new provisions could make, the Commission couldn’t give precise figures, saying that it would depend on the measures adopted.

PHOTO CREDIT: Teresa Ribera, Executive Vice-President of the European Commission for a Clean, Just and Competitive Transition, and Dan Jørgensen, European Commissioner for Energy and Housing, give a press conference on the affordable housing Photographer: Jennifer Jacquemart © European Union

America’s elders need more places to live, but even in liberal enclaves that recognize the problem, developers are facing fierce foes: America’s elders. Make it make sense! Charley Locke reports from her hometown of Oakland, California, where boomers are organizing against two proposals that would add 618 market-rate residential units to the city’s senior housing stock:

Many in the crowd had been marching against governmental and corporate overreach for half a century: against the Vietnam draft and the invasion of Iraq; against Wall Street; against police brutality. They’re part of a generational force that’s antiestablishment and suspicious of power. But in this fight, it wasn’t so clear who the establishment was or who had the power. Were these righteous middle-class activists fending off greedy developers who would charge high rents, or were they wealthy seniors prioritizing neighborhood character over ameliorating the housing crisis? Were they once again David, or had they become Goliath?

“Most people don’t get to buy their old homes back, or ever step foot in them again, and that’s okay. But we sure can spend a lifetime trying to re-create them.” In this poignant essay for Dwell, Emilia Petrarca celebrates the work of her late father, the New York City architect John Petrarca, and explores how his influence has shaped her own relationship to home and interior design. Petrarca reflects on the process of finding her own aesthetic while carrying her father’s with her, considering the ways belongings and spaces can hold our memories, legacies, and grief.

When I moved out of my mom’s house and into my first apartment with a roommate at 23, I brought with me a black rug my dad bought in Morocco. After graduating from Carnegie Mellon, he joined the Peace Corps and spent time in Ouarzazate designing government buildings. In a room full of cheap Ikea furniture, it was the only thing that truly felt like a reflection of me. Well, that and a rigid, plastic, yellow outdoor chair I for some reason bought to go with my desk. Looking back at photos now, I see that the choice makes more sense: The chair my dad got me for my room in the Big House was almost the exact same hue.

You don’t have to live in El Cerrito, California, or have ever used Nextdoor, for this essay to resonate. For Oakland Review of Books, Amy Brown recounts buying her first home in the East Bay city and swiftly becoming the villain of her local Nextdoor—after her uncharitable Bluesky posts about the seniors opposing a library tax made their way back to her neighbors. Honest and funny, Brown’s essay explores being locally online—that weird, often uncomfortable place between online and IRL—and shows how (not) to talk to people you’ll run into at the grocery store.

Still, I spent multiple nights lying awake, thinking that everyone in this town must know I’m a bitch now. My son is supposed to start TK at the public school in the fall. What if his classmates’ parents use Nextdoor? What if the nice lady across the street who organizes a monthly dinner for our block uses Nextdoor? What if my neighbor already told everyone that the woman who moved into the house on the corner is an asshole? Does everyone I see on the street think I’m an asshole? Can they tell I don’t belong here? Do I have to go crawling back to my hometown and get a job at the car seat manufacturing plant?

Brussels (enr) – Local and regional leaders raised concerns that the next multiannual EU budget risks undermining investment in affordable homes needed to alleviate Europe’s deepening housing crisis.

“Europe’s housing challenge is not simply about building more housing units,” said Kata Tüttő, President of the European Committee of the Regions (CoR), an EU advisory body home to democratically elected regional and local representatives from all 27 Member States.  

At a gathering in Brussels on Thursday, they demanded the EU “move from political ambition to concrete investment and delivery,” arguing that failing to invest now will only put affordable housing further out of reach for millions of Europeans.

As negotiations over the EU’s next long-term financial framework gather pace, cities and regions fear that affordable housing could become a casualty of competing spending priorities as several EU member states seek to cut the European Commission’s proposed €2 trillion budget for ‌2028-2034.

Tüttő called on the European Investment Bank (EIB), the EU’s lending arm, to “mobilise the scale of investment” that cities and regions need to “make communities liveable” by providing essential infrastructure. She cited public transport, as well as energy and water infrastructure, as key examples.

Italian MEP Irene Tinagli, Chair of the European Parliament’s Special Committee on the Housing Crisis (HOUS), said addressing the housing crisis “requires investment, better coordination across all levels of government and a shared commitment from European institutions, Member States, regions and cities”.

The CoR and EIB on Thursday agreed on closer cooperation in key areas including social infrastructure, housing, and energy. The European Investment Bank’s president, Nadia Calviño, said “investing into resilient cities and regions, into cohesion and housing” was a strategic priority.

According to EIB figures, the world’s largest multilateral development bank provided a record €5 billion in financing for housing projects across Europe in 2025. The EIB is targeting an increase to €6 billion this year, Calviño confirmed.

The investments are a contribution to the European Commission’s Affordable Housing Plan, which was launched in December and aims to boost housing supply, mobilise public and private investment, and support Member States and regions in expanding social and affordable housing.

According to the Commission’s estimates, however, the EU needs to build 2 million homes each year to meet current demand, which amounts to an investment of approximately €153 billion per year.

This story was produced by the European Newsroom (enr) in cooperation with the European Committee of the Regions (CoR). The editorial responsibility lies with the enr.