The European Union is preparing a package of measures to respond to the housing crisis that has pushed thousands of families out of the purchase and rental market, especially in countries like Portugal, where prices continue to rise well above incomes.
The European Commission confirmed that it will present, in December, a plan dedicated to affordable housing, which could open up space for new forms of financing, public support and more flexible rules for building and buying a home.
According to Notícias ao Minuto, this package includes instruments that can alleviate the pressure faced by young people, families and those who have been trying to enter the market for years without success.
European Union prepares European housing package
The European Commissioner for Economy, Valdis Dombrovskis, stated that housing is now “a problem in many EU member states” and that Brussels is working on a common response.
According to the same source, the presentation of this package is scheduled for December 16th and should include a European Plan for Affordable Housing, a proposal to review state aid rules, a new strategy for housing construction and a new European Bauhaus program focused on urban rehabilitation.
The European Commission wants to create conditions so that Member States can develop more public and private offerings with controlled costs, at the same time as they prepare mechanisms to limit bureaucracy and unlock buildings that are not progressing due to a lack of legal framework or financing.
Prices continue to rise above yields
According to the same source, the Commission’s autumn forecasts reveal that house prices will rise again in the second quarter of 2025, with increases of 5.4% in the European Union and 5.1% in the euro zone, in a more pronounced trend in southern and eastern Europe.
Portugal appears among the countries with the most aggressive growth, driven by strong demand, limited supply and a market that has not been able to produce homes at the necessary rate.
According to the publication, supply restrictions continue to be one of the biggest obstacles: construction permits at historic lows, high material costs and slow urban planning processes have blocked new projects, putting upward pressure on prices. The Commission admits that these constraints will remain until 2026–2027, if there are no structural changes.
Affordable housing plan could change the market
The European Plan for Affordable Housing could be the first community initiative with a real impact on access to home ownership. According to Notícias ao Minuto, Brussels is designing financing mechanisms, new limits for local accommodation, more flexible rules to support construction at controlled prices and instruments to reinforce public and cooperative supply.
The measure gains special relevance at a time when, in Portugal, competition in the private market is pushing families out of urban centers and forcing many young people to postpone leaving their parents’ home.
Data cited by the Commission shows that more than one in four people aged between 15 and 29 lives in overcrowding, and that one in ten Europeans spends more than 40% of their income on housing alone.
Brussels is not talking about a miracle solution, but admits that the new package could be a turning point to support those who are stuck “at the door of the market”.
Portugal is at the center of European concerns
Portugal stands out in statistics as one of the countries where the discrepancy between prices and income is most profound. According to , house values have grown at a rapid pace without family income keeping up with this evolution, especially in large cities and regions with strong tourist pressure.
At the same time, new construction remains limited by regulatory barriers and high costs, which means that supply is insufficient to meet demand. The European Commission recognizes these difficulties and wants the new European plan to function as a complement to national policies, without replacing the competences of the Member States.
Possible help for those trying to buy a house
The European plan comes at a time when thousands of Portuguese people feel that buying a house is simply impossible.
With high incomes, more expensive credit and unbridled prices, any instrument that increases supply, reduces costs or simplifies licenses can make a real difference in the lives of those who have been out of the market for years.
The European Union promises details in December, but adds that the objective is clear: to create conditions so that housing stops being a luxury and becomes an affordable right again.
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