Europe’s housing crisis has escalated to an “emergency”, as young people in many member states find it impossible to buy or even rent a home, European Commissioner for Housing Dan Jørgensen has told Euronews, adding that Brussels is taking the situation “extremely seriously”.
Housing rental and purchase costs have become increasingly unaffordable across the bloc. European Commission data shows property prices across the EU have skyrocketed by roughly 60% over the past decade, while in the same period, average rents rose by over 20%.
“Prices in many cities in Europe are way too high,” Jørgensen told Euronews’ flagship morning programme, Europe Today. “We see normal people with normal jobs unable to find a place to live, being crowded out of the cities where they serve as police officers, nurses and teachers and so on. So this is totally unacceptable, and we need to act.”
He added that the EU, despite not holding any direct competence or legislative power over housing, is ready to act.
“It’s also important from the European Union’s side […] to acknowledge that this is also a European problem. So we need to provide solutions from Brussels,” he explained.
Jørgensen’s comments came after the European Commission unveiled new rules designed to give national and local authorities clearer rules and legal backing for restricting short-term holiday rentals, part of the Affordable Housing Act.
Across European cities, from Lisbon and Barcelona to Brussels, residents complain that short-term rental platforms like Airbnb have removed homes from the market and pushed prices up. While such rentals represent just 1.2% of the EU’s total housing stock, they can account for up to 20% in some tourism hotspots.
“In some cities, these short-term rentals have crowded out normal people from their homes because there is more money to be made from short-term rentals,” Jørgensen explained.
The Commission pointed out that, in some countries, local authorities have tried to take measures to bring down prices, but have been faced with court challenges from operators about “compatibility with EU law.”
The new rules give local governments “clarity and predictability” on how they can rein in operators like Airbnb in “areas under housing stress,” or where there is such clear evidence of serious housing pressure.
“Where that is the case, we are now giving member states the legal basis to regulate this. […] We are giving them the ability to actually do something about this important problem,” Jørgensen said.
Social emergency
Jørgensen also warned of the social and economic repercussions of the housing crisis, saying that it is preventing people from “starting a family, getting the job they want and having the education they need.”
Jørgensen dismissed claims that the EU executive is overreaching by proposing solutions that can only be executed at national and local level, stressing that the decision on whether to act and what measures to take is ultimately in the hands of the authorities.
“It’s about finding the balance,” he went on to say. “I’ve really felt a pressure to act on short-term rentals, […] but we shouldn’t prescribe. We shouldn’t force member states to do specific things.”
The Commissioner also acknowledged that tightening the screws on short-term rentals is not a silver bullet.
“We also need to do more to build more houses, to renovate more houses, to find new purposes for buildings that already exist so that they can become houses,” adding that for this, cutting red tape and mobilising funds are needed.
“All of these things need to be done, so this is an important step, but it’s not the only step.”