Agnieszka Kulesa, Agnieszka Maj, Aleksandra Owczarek & others
European Economic and Social Committee (EESC)
2024
🏛️ Context and Publication The study titled “Affordable Sustainable Housing in the EU” was published in 2024 by the European Economic and Social Committee (EESC), an advisory body of the European Union that represents various civil society organizations. The research was conducted by the Center for Social and Economic Research (CASE) and authored by Agnieszka Kulesa, Agnieszka Maj, Aleksandra Owczarek, Anna Wiktorow-Bojska, and Karolina Zubel. This comprehensive study provides critical insights into the challenges and opportunities surrounding affordable sustainable housing in the EU. 🏘️ Housing Crisis Overview Housing affordability has emerged as a pressing issue across Europe, with urban households spending over 40% of their disposable income on housing. The report highlights that more than 10% of urban and 7% of rural households face these challenges, exacerbated by rising construction costs, increasing mortgage rates, the growth of short-term rentals, and crises such as COVID-19 and energy supply issues. Climate change also poses significant impacts on housing infrastructure, necessitating urgent policy action. 📊 Key Findings on Affordability and Sustainability The study defines affordable housing as costs that do not exceed 30-40% of household income, ensuring prices are at or below market rate relative to Area Median Income. Sustainability is broken down into five dimensions: habitability and comfort, community and connectivity, economic accessibility, resource efficiency and circularity, and resilience to climate impacts. 🌍 EU Policy Landscape The report outlines several key EU initiatives aimed at addressing these challenges, including the European Pillar of Social Rights, the European Green Deal, and the Urban Agenda for the EU. It identifies four governance models among Member States, ranging from concentrated to sectoral structures, which influence the implementation of housing policies. 🔄 Implementation Trends Significant trends include a shift from supply-side to demand-side measures since 2009, decentralization of housing authority, and increased involvement of the private sector. Digital transformation is also noted, with varying levels of digitalization across member countries and the adoption of technologies like Building Information Modeling (BIM). 🔮 Future Directions For the medium term, the study emphasizes goals such as doubling building renovation rates and creating 160,000 green jobs by 2030. Long-term objectives include achieving carbon neutrality in the housing sector by 2050 and developing integrated sustainable housing systems. 📈 Conclusion This research serves as a vital resource for policymakers, housing providers, civil society organizations, urban planners, and investors, addressing Europe’s housing challenges while aligning with climate objectives and social needs.
European Economic and Social Committee (EESC)
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), emphasizing several crucial factors in the building process: habitability, community, economic accessibility, resource efficiency, circularity, and climate change resilience. It examines two emerging trends: digitalization and the integration of social economy entities into housing provision. These trends address immediate housing challenges while aligning with broader societal shifts such as aging populations. Digitalization optimizes planning, construction, and management, enhancing resource efficiency. Meanwhile, social economy entities prioritize 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