EU: Plan to Tackle the Housing Crisis

The European Commission is preparing a comprehensive plan to address the housing crisis affecting EU countries. The public consultation, which began on July 11 and will end on October 17, aims to increase the supply of affordable housing.

Rising house prices and rents, as well as increased costs for utilities and renovations, are putting pressure on households, especially in large cities and tourist destinations. Low-income families face the greatest difficulties.

According to the European Commission, house prices have increased by more than 20% since 2015, while rents in major cities have increased by up to 48% for one-bedroom apartments between 2014 and 2024. 17% of the population lives in overcrowded homes.

The EU is considering various priorities, including the creation of a pan-European investment platform for affordable and sustainable housing, channeling liquidity into the housing market, and revising the rules on state aid.

In Cyprus, property prices vary by region. In Nicosia, the average selling price of houses increased by 35.5%, reaching €412,000. In Limassol, the average value of apartments increased by 12.4%, reaching €372,000.

In 2026, the European Commission will submit a proposal for a European affordable housing plan.