EU Tackles Housing Crisis: New Construction Act & Affordability Plan

Ursula von der Leyen unveils EU's 2026 legislative program, prioritizing housing affordability. A new Construction Act and Affordable Housing Plan aim to combat rising costs and financialization, addressing a key concern fueling far-right movements.

European Compensation President Ursula von der Leyen revealed significant housing-related efforts while introducing Brussels’ legislative program for 2026 on Tuesday, underscoring the EU’s recurring bid to tackle the bloc-wide expense of living dilemma.

Building and Construction Services Act

Towards the end of 2026 Brussels will publish its Building and construction Services Act, which aims to reduce policies related to the building field and speed up the building of new homes. The new regulation will act on the Commission’s upcoming Affordable Housing Plan, which is because of be released in December and according to Jørgensen will “target the financialization of our housing stock” and aid finish “self-seeking conjecture on a fundamental need like our homes.”

Commission President Commitment

Von der Leyen signaled her individual commitment to tackle the issue in advance of her reelection as Commission president in 2024, and defined the housing lack as a social situation in this year’s State of the European Union address. The European Parliament introduced an unique committee on the situation at the start of this year, and national leaders are due to talk about the problem at this week’s European Council summit in Brussels.

“Price is a main subject of this Compensation Work Program for 2026,” von der Leyen said in a speech to the European Parliament in Strasbourg, emphasizing the demand to deal with the high rate of real estate in order to “shield our citizens and support our values.”

Far-Right Parties Housing Dilemma

The EU’s primary institutions are clambering to deal with the housing dilemma, which is fueling the development of far-right celebrations throughout the EU. In the Netherlands, Geert Wilders and his reactionary Event for Liberty won the 2023 nationwide ballot marketing on a real estate lack he claimed was being worsened by travelers and asylum hunters. Likewise, Portugal’s Chega event surged to come to be the nation’s leading resistance this year by barrier versus the failure of facility celebrations to take on soaring home costs.

Brussels’ schedule for the next year will consist of a landmark effort on temporary services that schedules in the springtime. Tourist flats– furnished accommodation for brief stays– are a significant consider sky-high housing costs in the bloc’s major cities, and Housing Commissioner Dan Jørgensen has actually indicated a need to control such properties.