Wednesday, 17 December 2025
The European Commission is preparing the first EU-wide plan for affordable housing in response to sustained price growth and a decline in new residential supply across the bloc, according to Krystyna Helińska, Vice-Chair of the Real Estate Committee.
The initiative comes amid mounting evidence of structural challenges in the European housing market. Between 2010 and 2024, average housing prices in the EU increased by 55.4%, while the number of building permits issued fell by more than 20% over the past five years. Rising construction costs and demand, combined with shrinking supply, have contributed to worsening affordability across Member States.
In Poland, these trends are more pronounced. Housing prices have doubled over the past decade, and in the first quarter of 2025 alone rose by 13.2% year on year, compared with an EU average of 5.7%. High interest rates have further limited access to home ownership, particularly for middle- and lower-income households.
According to Eurobarometer data, 51% of urban residents in the EU consider the lack of available housing to be an urgent problem. More than 10.6% of city dwellers face excessive housing costs, while homelessness affects over 1.2 million people across the Union. Helińska notes that affordability pressures are influencing key life decisions, particularly among younger generations, including delaying family formation or relocating to countries with more favourable income-to-cost ratios.
Against this backdrop, housing affordability is increasingly viewed as a pan-European economic and social challenge rather than a purely national issue. A coordinated EU strategy could help align policies, promote the exchange of best practices and introduce financial instruments to stimulate investment, particularly in markets where supply constraints are most acute.
According to Helińska, the success of the EU plan in Poland will depend on addressing the country’s ownership-dominated housing structure and the limited availability of rental housing. More than 87% of residential properties in Poland are owner-occupied, while only 12.7% are part of the rental market.
Recent figures underline the imbalance: in the first half of 2025, developers completed around 57,000 apartments, of which fewer than 2,000—less than 3%—were municipal or social housing units. Helińska argues that EU-level financing, including through institutions such as the European Investment Bank, should prioritise the development of affordable rental housing to help diversify supply.
Support for local governments is another key issue. While municipalities are best placed to identify housing needs, they often lack sufficient funding and operational tools. The number of municipal flats completed fell by 40% year on year, highlighting the need for targeted investment support that avoids excessive administrative burdens.
Helińska also points to the regulation of short-term rentals as an important element of the planned EU framework. For Poland’s larger cities, particularly tourist and academic centres, limiting short-term rental activity could help return housing stock to long-term residents and ease pressure on rental prices.
Energy efficiency is another central consideration. Housing affordability, she notes, is influenced not only by rents or purchase prices but also by operating costs. New developments should therefore meet high energy standards to reduce long-term utility expenses.
Finally, Helińska argues that the EU plan should encourage Member States to shift away from short-term demand-side measures, such as loan subsidy programmes, which can inflate prices when supply is constrained. Instead, she calls for long-term, supply-focused policies supported by EU funding.
“Real improvement will only come when EU resources are directed towards diversifying housing markets and expanding supply, rather than reinforcing existing imbalances,” she concludes.
