Listen: Can the EU really make housing more affordable?

Production: By Europod, in co-production with Sphera Network. EUobserver is proud to have an editorial partnership with Europod to co-publish the podcast series “Briefed” hosted by Léa Marchal. The podcast is available on all major platforms. Find the full transcript below: In the first quarter of 2026 alone, rents increased by three percent compared with the same period last year across the European Union. The EU is publishing its Affordable Housing Act today. But will it really help Europeans afford housing? The housing crisis is affecting people across Europe. Just the day before yesterday, our colleagues at Greek media outlet Popaganda, which is also part of the Sphera network alongside Europod, reported the story of a teacher who was transferred to a new school for the start of the academic year. She is now sleeping in a tent with her daughter because she cannot afford decent housing on a teacher’s salary. And this is not an isolated case. It’s a real problem in Greece, particularly for teachers who have to work in highly touristy areas, where rents are rising but salaries are not keeping pace. And Greece is far from being the only country facing this problem. As for homelessness, several organisations estimate that the number of people without a home has doubled in recent years, reaching around one million people. So, what is the European Commission proposing? According to preparatory documents published by Agence Europe, the Commission is expected to propose actual legislation today. A regulation restricting short-term rentals in certain cities where housing markets are under pressure. Think Airbnb-type rentals. The Commission is also expected to issue several recommendations to national authorities. But these would not be legally binding. The idea of restricting short-term rentals is probably inspired, at least in part, by the recent example of Slovenia. It is one of the few countries in Europe where rents have fallen recently. And one of the reasons is that Slovenia has introduced new rules on short-term rentals. These rules have brought a large number of homes back onto the long-term rental market, helping to bring down average rents. Several European cities have also introduced restrictions on Airbnb-type rentals, including Amsterdam, Berlin, Brussels, Barcelona and Florence. But the results are mixed. In Barcelona and Amsterdam, for example, the number of homes available for long-term rental has increased. Rents however have not fallen as a result — at least not yet. Alongside its regulation, the Commission is also expected to make recommendations on other aspects of the housing crisis. It wants governments to encourage the energy renovation of homes, as well as their extension or conversion, to make sure people can live in decent conditions. There are also proposals to develop low-cost rental housing and social housing. And more broadly, the EU wants Member States to mobilise both public and private investment in housing, particularly in areas where housing markets are under the greatest pressure. But there is one issue the Commission appears to be steering clear of: rent controls. That’s quite simply because housing policy largely falls outside the EU’s powers. The Commission could still mention rent controls in its recommendations. But it doesn’t appear to be doing so, probably because there is still a debate over how effective they actually are. Rent caps are already used in several European countries. They are also being tested in Paris and other French cities. Here in Brussels, there are rules addressing excessive rents, although they are relatively flexible. Other countries have gone further, such as Sweden. So, do rent controls actually work? Well, the answer is complicated. In Paris, the system appears to have had an effect: rents are estimated to be around five percent lower than they would otherwise have been. But the system is far from perfect. In practice, it is not fully respected, and nearly half of rental listings continue to be above the regulated rent threshold. Opponents of rent controls also point to Sweden, where rents have increased this year despite a strict system that has been in place for several years. So, at first sight, rent controls are certainly not a miracle solution. And that’s really the problem with the housing crisis. There are multiple factors at play. There is the availability of housing, the cost of construction, social housing, short-term rentals, and temporary accommodation for vulnerable people. This means, much of the responsibility remains with national and local governments.