EU faces €650 bn annual shortfall to tackle housing crisis

EU interior ministers gathered in Nicosia, chaired by Cyprus Interior Minister Constantinos Ioannou, warned that the bloc needs an extra €650 billion each year to meet growing demand for housing. The shortage of affordable homes and soaring prices have been intensified by the rapid rise of short‑term rentals, which reduce the supply of long‑term accommodation and push up property values.

European Commission energy and housing commissioner Dan Jørgensen said the Commission is preparing a legislative proposal to curb the negative impact of short‑term rentals. Ministers also discussed cutting red tape, improving licensing procedures for new homes and increasing investment, noting that at least €43 billion has already been allocated to housing construction under the current EU multi‑annual financial framework. New funding options are expected in the next EU budget to address the crisis.

The meeting focused on strengthening national housing strategies and accelerating investments to ease the pressure on the rental market and improve access for vulnerable groups and the middle class across Europe.