Brussels (enr) – Local and regional authorities have expressed worries that the upcoming multiannual EU budget may jeopardize investments in affordable housing necessary to address Europe’s escalating housing crisis.
“The housing issue in Europe transcends merely constructing more units,” stated Kata Tüttő, President of the European Committee of the Regions (CoR), an EU advisory body comprising elected representatives from all 27 Member States.
During a meeting in Brussels on Thursday, they urged the EU to transition from ambition to actionable investment and implementation, warning that a failure to invest now would push affordable housing further beyond the reach of millions of Europeans.
As discussions around the EU’s next long-term financial framework accelerate, cities and regions are concerned that affordable housing might suffer due to conflicting spending priorities, especially as several EU member states aim to reduce the proposed €2 trillion budget for 2028-2034 set by the European Commission.
Tüttő urged the European Investment Bank (EIB), the EU’s financial institution, to “mobilize the necessary investment scale” that cities and regions require to “create livable communities” through essential infrastructure, highlighting public transport, energy, and water systems as critical areas.
Irene Tinagli, an Italian MEP and Chair of the European Parliament’s Special Committee on the Housing Crisis (HOUS), emphasized that tackling the housing crisis “demands investment, improved coordination across all government levels, and a united commitment from European institutions, Member States, regions, and cities.”
On Thursday, the CoR and EIB agreed to collaborate more closely on vital matters such as social infrastructure, housing, and energy. EIB President Nadia Calviño stated that “investing in resilient cities and regions, as well as in cohesion and housing,” is a strategic focus.
According to EIB data, the world’s largest multilateral development bank provided a record €5 billion in funding for housing initiatives across Europe in 2025, with plans to increase this to €6 billion in the current year, as confirmed by Calviño.
These investments contribute to the European Commission’s Affordable Housing Plan, initiated in December, which aims to enhance housing supply, galvanize public and private investments, and assist Member States and regions in expanding social and affordable housing.
However, the Commission estimates that the EU needs to construct 2 million homes annually to satisfy current demand, necessitating an investment of around €153 billion each year.
This story was produced by the European Newsroom (enr) in collaboration with the European Committee of the Regions (CoR). The editorial responsibility lies with the enr.
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