Over 70% of Europeans live in urban areas. This translates into high demand for access to housing at affordable prices in several cities. According to the latest Eurostat data (Living conditions in Europe – 2018), almost 1 in 20 people across the European Union faced severe housing deprivation in 2016, and some 11% of the EU‑28 population spent 40% or more of their household disposable income on housing. Due to gradually decreasing investments since 2009, the affordable and social housing sector is confronted with two main problems: a decline in stocks and quality of dwellings, and the increasing need for accommodation.

A recent EU study[1] reveals a €6bn annual investment gap in social and affordable housing, meaning that investment in this sector should increase by 25%. Housing is a basic human need and the European Investment Bank is committed to easing the pressure on housing markets in Europe. The EIB creates advanced financial tools to meet that need. Social and affordable housing loans are a major element of the EU bank’s €150bn in urban lending. The EIB support in this sector includes the retrofitting of existing housing and the construction of new social and affordable accommodation, ranging from housing schemes in small towns and rural areas often facing demographic challenges to development projects in large cities with very severe housing shortages.