EU Parliament committee approves housing recommendations and first affordable housing plan

On a Monday, the European Parliament’s Special Committee on Housing approved its final recommendations with 23 votes in favor, 6 against, and 4 abstentions. This move aligns with European Commissioner for Energy and Housing Dan Jørgensen’s presentation of the first European Plan for Affordable Housing in December 2025. Data indicates that over the last decade, European house prices rose by 60% and rents by 20%, resulting in 17% of the population living in overcrowded conditions and one million people facing homelessness. The approved recommendations prioritize energy efficiency, air quality, and the expansion of social and public housing for vulnerable groups. To mitigate the crisis, the committee suggests legislative intervention to regulate short-term rentals in over-saturated cities and tax incentives for low-to-middle-income households. The plan also proposes reallocating unused Recovery Fund resources for the construction and renovation of affordable housing units. While housing remains a national responsibility, the EU intends to provide coordination and scale through this new framework. Commissioner Jørgensen emphasized that the initiative aims to combat a social emergency where one in ten Europeans cannot afford heating.