Across the EU, the housing crisis is spiralling out of control. Millions live in overcrowded, inadequate homes, face energy poverty, or are homeless—while rents skyrocket and housing costs devour incomes. In 2023, over 10% of city households spent more than 40% of their income on housing, and rents jumped 18% in just over a decade.
Why? Decades of chronic underinvestment in public housing have left governments handing the reins to private developers and investors who drove up prices with speculation. This has created a system that prioritises profits over people. It’s time to rewrite the rules.
A turning point for Europe or more of the same?
For the first time, the European Commission has a dedicated Housing Commissioner, Dan Jørgensen, tasked with developing an affordable housing plan, which will include the creation of an investment platform in partnership with the EIB and other financial institutions
But will this truly prioritise people? Or will it funnel public funds into private hands, perpetuating the very market-driven approaches that deepened this crisis?
This moment is a critical opportunity to reset Europe’s approach. Public, cooperative, social, and community-led housing must take center stage—not the investors who have been driving up prices in the past decades. Investing in non-profit, energy-efficient, and social housing for the most vulnerable is the only path out of the housing crisis.
A 5 points to-do list for the EIB
The European Investment Bank (EIB) has a unique chance to lead. Its new housing Task Force and plans for a pan-European investment platform must prioritise public good over private greed. This requires bold, people-centred action:
- Prioritise investments that respond to the needs of the most vulnerable, rather than catering to private investors seeking to maximise their own profits. Focus funding on public and social housing, ensuring that investments meet the needs of low-income and marginalised groups—not corporate developers. Securitised loans that destabilised housing markets in 2008 must be avoided at all costs.
- Set targets for social housing. Commit to financing high-quality, energy-efficient social housing. Establish clear, transparent reporting to track the share of social versus affordable housing and ensure alignment with public needs.
- Adopt a rights-based approach. Housing investments must align with the UN framework on adequate housing, ensuring affordability, security of tenure, accessibility, and habitability. This guarantees long-term solutions over short-term fixes.
- Collaborate closely with other public investment banks, local governments, and cooperative and social housing providers to design inclusive projects that combine housing with public services and socio-economic support.
- Put sustainability at the core. Investments should prioritise energy-efficient renovations, reuse of vacant buildings, and climate-friendly construction. At the same time, respect workers' rights by limiting subcontracting and promoting fair wages and safe working conditions.
A defining challenge - and an opportunity for change
Europe’s housing crisis is a defining moment. It’s not just about homes—it’s about justice, equality, and rebuilding trust in public action. Last week, 49 MEPs sent a letter to the Board of Directors of the EIB to tackle the housing crisis head-on: the Bank has a choice - break with the failed market-driven approaches or let inequality and exclusion spiral further.
By putting people before profits and championing bold, public-centred investments, we can ensure housing is a right—not a privilege. Without this shift, the vision of a fairer, more sustainable Europe will continue to remain out of reach.