In less than a decade, average house prices have risen by 48% across the EU. The European Parliament’s has set up a new committee to tackle the crisis, and its chair Irene Tinagli told Euronews there is plenty of room for manoeuvre.
From providing funds to boost sustainable and affordable housing to renovating old buildings, the European Union has the tools to tackle the housing crisis affecting citizens across the bloc – but not without political will and cooperation between opposing political groups, MEP Irene Tinagli (S&D/Italy) told Euronews.
“I see some political groups that already say maybe the only trouble is to build some new buildings,” Tinagli told Euronews in an interview in Strasbourg. “I think we can do much more, but we need political will.”
“If there is no political agreement on the solutions, then the risk is that we created the illusion that we can do something,” she added.
Tinagli chairs the European Parliament’s new special committee on housing, which will work over the next year to develop solutions and recommendations for the EU’s first ever commissioner for housing, Dan Jørgensen, whose portfolio also covers energy.
Jørgensen’s mandate for the next four years includes creating a pan-European investment platform for affordable and sustainable housing, adapting state aid rules, presenting the first European Affordable Housing Plan, and developing a European Housing Strategy to improve supply of new homes.
“I hope the European Commission will be ambitious and put forward not just one initiative but a comprehensive package, because [the housing crisis] is a multifaceted issue,” said Tinagli, who trained as an economist.
Between 2015 and 2023, average housing prices in the EU rose by 48%, while rents increased by 18% between 2010 and 2022. One contributing factor was the rise of short-term rentals, which removed homes from the market, according to the European Parliament’s research service.
Yet the impact of the housing crisis is not felt equally in all countries and cities, with huge differences between member states such as Hungary, where house prices rose by 173% in less than a decade, and others such as Finland, where prices rose by just 5%.
“I don’t want to say that the European Union has a magic bullet or a one-size-fits-all solution, because every country faces a unique situation, but we can offer a deeper understanding of the problems and what solutions might work in different contexts,” Tinagli said.
The parliamentary committee will not have legislative power, but it is tasked with mapping housing needs, analysing existing policies across the EU, and working with member states, cities, and regions to develop solutions.
“I see this as an opportunity to bring [regional governments] here, and narrow the gap between the EU and the cities where people actually live,” Tinagli said.
She also highlighted the importance of understanding how the housing market functions and what went wrong over the years to create the current crisis.
“If you lose sight of the primary objective—providing homes for people—then something has gone in the wrong direction. Understanding this is the most ambitious part,” she said.
Both the rising cost of living and the economic fallout from the covid pandemic were key factors influencing voters in the 2024 European elections. The results saw a shift to the right, with the far-right Patriots for Europe (PfE) group becoming the third-largest force in the European Parliament.
From Lisbon to Madrid, citizens have taken to the streets demanding better working conditions and access to affordable housing. This growing dissatisfaction has intensified political attention on the issue, but it has also fuelled social unrest.
Analysts suggest this unrest has created a climate that benefits extremist parties.
“Whereas centre-left parties have traditionally addressed the housing problem through the lens of inequality and social policies, radical right parties started exploiting the issue and use migration policies to address the housing crisis,” reads an analysis by the Brussels-based European Policy Centre think tank.
The EU’s housing crisis may have contributed to “a sentiment of detachment from the European Union or from traditional parties” as people feel their primary needs have been ignored, Tinagli agreed.
“So, they might turn to those who, despite having no real solutions or management experience, exploit discontent for their own political gain,” the socialist lawmaker argued.
However, if this crisis serves as a wake-up call for the EU and its politicians, “I think it’s not all bad,” Tinagli concluded.
