European Economic and Social Committee (EESC)
2024
Agnieszka Kulesa, Agnieszka Maj, Aleksandra Owczarek, and others
The study titled “Affordable Sustainable Housing in the EU,” published by the Center for Social and Economic Research (CASE) for the European Economic and Social Committee (EESC), examines critical policy solutions to address the housing crisis in Europe. It highlights the growing challenges of housing affordability and sustainability, exacerbated by rising costs and socio-economic factors. Key components for sustainable housing are identified, including habitability, community, economic accessibility, resource efficiency, and climate resilience. The research outlines EU-level initiatives and national governance structures to tackle these issues. It emphasizes the importance of digitalization and the involvement of social economy entities in enhancing housing solutions. Future priorities include doubling renovation rates and achieving carbon neutrality in the housing sector by 2050. This comprehensive study serves as a vital resource for policymakers, urban planners, and social economy providers in creating inclusive and sustainable housing across Europe.
This comprehensive study published in 2024 by the Center for Social and Economic Research (CASE) for the European Economic and Social Committee (EESC) provides crucial insights into the state of affordable sustainable housing in the EU.
Abstract
This study explores policy solutions for affordable and sustainable housing in the European Union (EU), emphasising a number of factors which are crucial throughout the building process: habitability, community, economic accessibility, resource efficiency, circularity, and climate change resilience. It investigates two emerging trends: digitalisation and the integration of social economy entities into housing provision, which not only address immediate housing challenges but also align with broader societal shifts such as ageing populations. Digitalisation optimises planning, construction, and management, enhancing resource efficiency, while social economy entities prioritise community- oriented, sustainable housing solutions that promote affordability, long-term stability, and resilience. The research offers medium and long-term policy recommendations aimed at fostering inclusive, affordable, and sustainable housing across Europe.
Housing Crisis Context
Housing has become a critical challenge across Europe, with housing and energy costs representing the largest household expenditure. Over 10% of urban households and 7% of rural households spend more than 40% of their disposable income on housing. The situation has been exacerbated by:
- Rising construction costs
- Increasing mortgage rates
- Growth in short-term rentals
- Multiple crises including COVID-19 and energy supply issues
- Climate change impacts on housing infrastructure
Conceptual Framework
Housing Affordability Definition The study establishes that affordable housing typically means:
- Housing costs should not exceed 30-40% of household income
- Pricing should be at or below market rate considering Area Median Income
- Addressing the gap between social housing and market-rate housing
Sustainability Components The research identifies five essential dimensions:
- Habitability and comfort
- Community and connectivity
- Economic accessibility
- Resource efficiency and circularity
- Resilience and climate adaptation
Policy Landscape
EU Level Initiatives The study highlights key EU policy frameworks:
- European Pillar of Social Rights
- European Green Deal and Renovation Wave Strategy
- Energy Performance of Buildings Directive
- New European Bauhaus
- Urban Agenda for the EU
National Policy Structures The research identifies four governance types across Member States:
- Concentrated (e.g., Portugal) - single coordinating unit
- Overlapping (Netherlands, Spain) - multiple units with shared responsibilities
- Scattered (Austria, Denmark) - numerous units with overlapping portfolios
- Sectoral (France, Germany) - specialized units requiring inter-ministerial cooperation
Implementation Trends
Policy Evolution Several significant shifts have occurred:
- Movement from supply-side to demand-side measures since 2009
- Decentralization of housing authority from national to local levels
- Increased private sector and social economy involvement
- Growing focus on energy efficiency and sustainability
Digital Transformation The study notes varying levels of digitalization:
- 18 countries have construction digitalization policies
- Building Information Modeling (BIM) adoption remains moderate
- Artificial Intelligence implementation is still in early stages
- Uneven implementation of energy performance databases
Future Directions
Medium-term Priorities (2030)
- Double building renovation rates
- Renovate 35 million buildings
- Create 160,000 green jobs
- Implement comprehensive digitalization strategies
Long-term Goals (2050)
- Achieve carbon neutrality in housing sector
- Establish fully integrated sustainable housing systems
- Develop resilient housing infrastructure
- Create inclusive and affordable housing markets
Significance
This research is particularly valuable for:
- Policymakers developing housing strategies
- Social economy housing providers
- Civil society organizations
- Urban planners and developers
- Impact investors and financial institutions
The study's timing and comprehensive scope make it an essential resource for addressing Europe's housing challenges while meeting climate objectives and social needs.
Authors
- Agnieszka Kulesa
- Agnieszka Maj
- Aleksandra Owczarek
- Anna Wiktorow-Bojska
- Karolina Zubel