"Housing Crisis Requires Joint Responsibility and Action"
Promoting Supply and Regulating Short-Term Rentals
As housing prices and rents have surged across Europe, exacerbating the housing crisis, the European Union (EU) has unveiled its first pan-European real estate policy.
On December 16 (local time), the European Commission, the EU's executive body, announced the 'Affordable Housing Plan,' stating, "The housing shortage is becoming increasingly severe in most parts of Europe, and a solution that covers the entire continent is needed." Teresa Ribera, Vice President of the European Commission, said, "The supply of affordable housing is one of Europe's most urgent challenges."
According to the European Commission, over the past decade, housing prices across the EU have risen by more than 60%, and rents have increased by over 20%. The EU has diagnosed that these sharp increases have led to various negative effects, including restrictions on mobility for work and education, and difficulties in starting families, ultimately undermining the overall competitiveness of the EU.
The EU's new real estate policy includes measures to expand supply, such as streamlining administrative procedures to accelerate housing construction, promoting investment in the housing sector, and easing national subsidy regulations. In addition, the plan aims to regulate short-term rentals like Airbnb and strengthen support policies for vulnerable groups.
The EU estimates that 2 million new homes need to be supplied annually to meet housing demand. Dan Jorgensen, EU Commissioner for Housing, stated, "Housing is being treated like other investment products that serve only as a means of making money, such as gold or Bitcoin. But housing is not just a commodity; it is a fundamental right. Europe must take collective responsibility and act on the housing crisis that affects millions of citizens."
Until now, unlike issues such as agriculture, migration, or trade, the EU has not officially overseen housing policy, with each member state implementing its own policies on urban planning, rent, and subsidies. However, as housing prices have soared in recent years, there have been growing calls for action at the EU level.
With the release of the EU's first housing crisis policy, mayors of major European cities have welcomed the move. Jaume Collboni, mayor of Barcelona, Spain, where housing prices have soared due to a surge in tourists and the prevalence of short-term rentals, described the EU's plan as "a turning point in Europe's housing crisis."
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