20 Actions for a New Housing Paradigm

 

WHAT IS AT STAKE?

Across our Union, families are being priced out of their homes. While apartments satisfy tourism demand, locals are being shut out.

Young adults from big or touristic cities are forced to leave their hometowns because they can't afford housing where they work.

Our elderly struggle to age in place with dignity, lacking access to essential services.

1 out of 10 Europeans can't keep homes warm, energy needs for cooling are set to rise.

New homes construction is under threat: building permits in early 2024 are down 32% from two years ago, hitting a 9-year low.

MEANWHILE...

Speculative housing markets and limited public resources are leaving nearly 1.3 million people in the EU without a place to call home, even as thousands of prime location homes remain vacant.

WE NEED HOUSING INVESTMENTS WITH PAYBACK TO SOCIETY

Eliminating housing inadequacy promises significant rewards in 18 months, thanks to lower healthcare costs and improved social outcomes.

Austrian social housing, known as limited-profit housing, saves households a remarkable €1.3 billion annually by keeping housing costs low.

In Belgium, gaining access to social housing significantly decreases the risk of poverty by an impressive 40%, providing families with much-needed stability.

ACTIONS ON FINANCE FOR DECENT HOMES

#1 Strengthen EU finance for housing

Ensure EU funding promotes public, cooperative, and social housing as a cornerstone across all 27 Member States to meet the demand for affordable housing and create a more equitable market.

#2 Protect investment in public, cooperative, social housing

The EU must prevent fiscal consolidation from hindering investment in the sector, despite many providers utilising diverse funding sources.

#3 Enhance de-risking mechanisms

Reinforce national and regional strategies that support sustainable, long-term funding for housing, such as Denmark’s National Building Fund.

#4 Support housing systems in Eastern Europe

Propose a fund to build capacity for sustainable housing systems in Eastern Europe, drawing inspiration from successful initiatives like the European Social Housing Alliance in France that secures long-term collaboration between the EIB, Caisse des Dépôts, and USH.

#5 Encourage responsible investment

Address the lack of socially responsible finance in real estate by ensuring EU funds are invested to attract private financing for public, cooperative, and social housing.

#6 Empower the European Parliament

Reinforce its role as a watchdog against speculation, aligned with the #Housing2030 policy compass.

#7 Allocate ETS II revenues

Direct 100% of ETS II revenues to the Social Climate Fund, ensuring 50% is used for energy efficiency in public, cooperative, and social housing or non-speculative energy poverty interventions.

#8 Create a single EU transformative fund for housing

Mainstream access to EU funds to increase investment in public, cooperative, and social housing, with specific earmarks for the sector in ERDF and ESF+. Extend the Recovery Facility beyond 2028.

#9 Align EU funding activities

Standardise eligible activities across EU funds, particularly in low-income urban areas, and facilitate combined fund usage to enhance access.

#10 Establish information points

Assist Member States in creating centralised information points for EU funds dedicated to the sector and address long-term development obstacles per the #Housing2030 policy compass.

AFFORDABLE HOUSING PLAN ACTIONS

#11 Maintain momentum from Ministerial meetings

Ensure ongoing informed exchange on housing among Member States by establishing a new housing expert group, including Housing Europe, to share best practices based on the #Housing2030 policy compass.

#12 Create an EU interservice taskforce

Form a taskforce to evaluate the impact of legislation and initiatives on housing, ensuring it includes all relevant DGs and reflects the housing ecosystem.

#13 Use diverse housing data

Ensure EU data on housing and social outcomes captures the varied situations in Member States, avoiding reliance on national averages that obscure underlying challenges.

#14 Revise State aid rules

Accelerate the revision of State aid regulations to enable social, public, cooperative, and community-led housing providers to meet the evolving needs of middle-income groups.

#15 Consider housing affordability in EU legislation

Ensure that EU environmental legislation considers the housing affordability crisis.

#16 Incentivise area-based transition plans

Encourage local authorities to develop just transition plans inspired by the EU’s Affordable Housing Initiative capacity building programme, SHAPE that Housing Europe is leading, prioritising energy-efficient, resilient homes and improved access to services.

#17 Support EU’s anti-poverty strategy

Ensure the ongoing support of the anti-poverty strategy and the European platform on combatting homelessness by recognising the importance of collaboration with social, healthcare, and employment services.

#18 Investigate construction unaffordability

Examine factors driving the unaffordability of construction products and services, and support simpler procurement to increase speed.

#19 Boost circularity in housing

Advocate for the inclusion of affordability in housing actions and investigate the potential of using secondary market materials to enhance circularity in construction and renovation.

#20 Bring communities around housing solutions

Encourage community involvement in shaping housing outcomes, aligning the New European Bauhaus initiative with the New Housing Paradigm to prioritise inclusiveness.

POLICYMAKERS' HOUSING COMPASS

The #Housing2030 report is a pivotal resource born from collaboration among UNECE, UN-Habitat, and Housing Europe.

It shows how some countries, regional authorities, or housing bodies have got housing right through how effective governance, climate-neutral policies, strategic land use, coupled with sustainable funding or finance.

With insights from over 100 experts, the report offers practical recommendations for policymakers and includes a wealth of resources on www.housing2030.org, featuring thematic podcasts and success stories.

THE AFFORDABILITY TRAP

In a Union of 27 countries, language matters.

While our joint societal goal is to tackle housing affordability, a vital and urgent objective, we must not lose sight of homelessness and the most vulnerable, as we risk missing our deeper social responsibility.

EU and government investments must create lasting social value for decades, not fade into the hands of speculative businesses after just a few years.