Funding and Delivery of Affordable Housing Supply

Affordable housing is a cornerstone of social stability and economic development in Europe. However, the current situation regarding affordable housing supply in Europe is a multifaceted challenge that affects various segments of the population, particularly the most vulnerable. This report examines the current state of affordable housing supply in Europe, drawing on insights from Housing Europe’s Housing Observatory and other relevant sources. It explores the issues of housing access, cost overburdening, homelessness, energy efficiency, and the broader implications for social and environmental sustainability.

Access to affordable housing is a critical issue across Europe. According to the European Parliament report, 25.1% of European tenants pay rent that exceeds 40% of their income. This cost overburdening disproportionately affects lower-income households, making it difficult for them to meet other basic needs. The situation is exacerbated by the continuous rise in housing prices, which have increased by 7% across Europe, with some countries like the Netherlands experiencing a 16% rise. The COVID-19 pandemic has further highlighted and exacerbated these challenges, making it even more difficult for many to afford decent housing.

Homelessness is a significant and growing problem in many EU countries. The latest report by FEANTSA and Fondation Abbé Pierre underscores the urgent need for coordinated action to address this crisis. The report highlights that while homelessness is on the rise in many countries, Finland has managed to decrease its homelessness rate through targeted prevention measures and an increase in affordable social housing supply. This underscores the importance of a sufficient supply of affordable housing in preventing and addressing homelessness.

Energy efficiency and heating costs are critical issues in the context of affordable housing. Approximately 50 million households in the EU are experiencing energy poverty, with rates growing rapidly even among middle-income families. Addressing this challenge is crucial not only for alleviating fuel poverty but also for reducing carbon emissions. The New European Bauhaus initiative aims to create sustainable and inclusive living environments by promoting energy-efficient buildings and sustainable practices. This initiative highlights the need for a comprehensive approach that integrates social, economic, and environmental considerations in housing policy.

To address the housing crisis, it is essential to increase the supply of affordable housing. Housing Europe has proposed a 10-point plan to tackle housing exclusion, high prices, and homelessness, which includes measures such as disincentivizing housing financialization and increasing funding for housing. Governments must prioritize the expansion of social and affordable housing to ensure that it is accessible to low-income individuals and protected from market-driven forces.

A strong social welfare system is crucial for tackling homelessness and housing insecurity. This includes providing adequate unemployment benefits, ensuring access to healthcare, and offering financial support for individuals and families at risk of losing their homes. Early intervention measures, such as providing support to those at risk of eviction and improving access to legal assistance, are also essential in preventing homelessness.

Migrants and refugees are disproportionately affected by homelessness and housing insecurity. Policies must ensure equal access to housing and services regardless of immigration status, streamline pathways to legal residency, and improve integration policies. This is crucial for creating inclusive and resilient societies that can support the needs of all residents.

The current state of affordable housing supply in Europe presents significant challenges that require urgent and coordinated action. By increasing the supply of affordable housing, strengthening social welfare systems, and addressing the needs of vulnerable populations, European governments can make significant strides in alleviating housing insecurity and homelessness. The integration of energy efficiency and sustainable practices into housing policy is also essential for creating a more resilient and inclusive future. As we move forward, it is crucial to recognize housing as a fundamental right and to invest in systemic change that supports the well-being of all citizens.