Europe is facing a growing housing crisis, with steep increases in property prices and rents over the past decade. Between 2010 and 2023, housing prices across the EU rose by 48%, while rents increased by 22%, outpacing inflation, which grew 36%, according to Eurostat. Some countries saw even sharper rises: Estonia’s rents surged 211%, Lithuania’s 169%, and Ireland’s 98%.

By 2023, nearly 9% of EU residents were spending 40% or more of their income on housing, including 29% in Greece, 15% in Denmark, and 13% in Germany.

In response, the European Commission, which created a housing commissioner role in 2024, is preparing new measures to address the crisis. Commissioner Dan Jørgensen, a Danish Social Democrat, announced that the Commission will unveil proposals in December 2025, accelerating a plan initially scheduled for 2026 due to the urgency of the social situation.

A key focus will be short-term rentals, such as Airbnb, which have been linked to rising rents, displacement of local residents, and the transformation of residential neighborhoods into tourist zones. The Commission also plans to tackle the financialization of housing, where homes are treated as speculative assets rather than social goods.

The plan aims to strengthen tenant protections, encourage governments to provide subsidies and tax relief to housing providers, and ensure a fairer, more socially responsible housing market. However, housing rights activists warn that without strong public oversight, private developers and financial institutions may continue to profit, worsening inequality in the housing sector.