As Spain grapples with soaring rents, tourist flat expansion, and a worsening housing shortage, the European Union outlines a multi-pronged strategy to support affordable housing.
This includes major funding initiatives, a new housing commissioner, and regulatory reforms aimed at stabilizing housing markets and supporting local communities.
The European Union has pledged renewed support to tackle Spain’s deepening housing crisis, unveiling a series of initiatives aimed at improving access to affordable housing, curbing the unchecked growth of tourist rentals, and fostering sustainable urban development.
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Speaking to Political Uprise News, a European Commission spokesperson confirmed that housing affordability is a top priority for the current mandate under Commission President Ursula von der Leyen. “Rents and house prices are soaring. There is also a significant and growing investment gap in social and affordable housing,” the spokesperson said, emphasizing the urgency of coordinated action across the EU.
Key Initiatives Underway
For the first time in EU history, a dedicated Commissioner for Housing, Dan Jørgensen, has been appointed. He leads a cross-departmental Task Force on Housing based within DG Energy. The task force is working on two major policy initiatives:
European Affordable Housing Plan – Aimed at offering technical support and investment guidance to member states and cities.
European Strategy for Housing Construction – Designed to reduce building costs, address skills shortages in construction, and boost environmental performance in housing development.
Additionally, the European Commission is developing a pan-European investment platform in collaboration with the European Investment Bank (EIB) and other institutions to channel public and private funds into sustainable and affordable housing.
The Commission also plans to revise State aid rules to better support energy-efficient and social housing projects, and to double cohesion policy investments in the housing sector.
Addressing the Impact of Short-Term Rentals
On a separate but related issue, the EU is closely monitoring the impact of short-term rentals, particularly in tourist-heavy cities like Barcelona and Madrid. A senior EU official confirmed that the Commission is currently preparing proposals to tackle systemic inefficiencies and the “inefficient use of the current housing stock” caused by unchecked growth in platforms like Airbnb.
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In November 2023, the EU adopted a regulation aimed at increasing transparency in the short-term rental sector, marking the first step in a broader policy reform effort.
Spain’s Access to EU Housing Funds
While housing policy remains largely under national jurisdiction, the EU has been providing significant financial support to Spain through various instruments, including:
Cohesion Policy Funds:
€32 million from the European Regional Development Fund (ERDF) helped resettle marginalized families in Madrid by purchasing and distributing 422 social housing units, along with social support services.
Recovery and Resilience Facility (RRF):
Spain has earmarked €5.3 billion for social housing and related infrastructure. A key component includes a €4 billion loan facility for constructing and renovating energy-efficient affordable homes. Additionally, Spain’s landmark Housing Law aims to regulate the availability and pricing of rental properties.
InvestEU Programme:
This program has already supported social housing in Catalonia with a €100 million loan, and similar investments are expected to expand.
According to EU sources, the Commission maintains active coordination with the Spanish government to address structural issues in the housing market. This includes the availability of land, urban regeneration, and protecting local communities from speculative real estate trends driven by immigration and tourism.
A Commission spokesperson stressed that the EU’s efforts depend on collaboration at all levels: “We have started an open and inclusive cooperation with stakeholders, governments, and institutions across the EU. A recent joint conference with the European Parliament was held to deepen this dialogue and foster new policy directions.”
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As housing insecurity grows across many parts of Europe, Spain has become a key test case for the EU’s evolving role in domestic policy challenges. While the roadmap is still developing, the creation of a dedicated housing commissioner, targeted financial tools, and regulatory reforms indicate that Brussels is prepared to take a more hands-on approach to support affordability, inclusion, and sustainable urban living.
For more information on EU housing policies, stakeholders can visit the European Commission’s housing and urban development portals or follow updates from the Commissioner for Housing and Energy.
