In less than a decade, average house prices have skyrocketed by 48% across the EU, creating a housing crisis that is affecting citizens across the bloc. To address this issue, the European Parliament has established a new special committee on housing, chaired by MEP Irene Tinagli. The committee aims to develop solutions and recommendations for the EU’s first commissioner for housing, with a focus on creating affordable and sustainable housing options. Despite the challenges, Tinagli believes that the EU has the tools necessary to tackle the crisis, but it will require political will and cooperation between opposing political groups.
One contributing factor to the rise in housing prices in the EU has been the increase in short-term rentals, which have removed homes from the market. This has led to a situation where house prices in some member states, like Hungary, have risen by 173%, while in others, like Finland, prices have only increased by 5%. Tinagli emphasizes that there is no one-size-fits-all solution to the housing crisis, but rather a need for a deeper understanding of the problems and tailored solutions for different contexts. The parliamentary committee will work on mapping housing needs, analyzing existing policies, and collaborating with member states to develop effective solutions.
The economic fallout from the covid pandemic and the rising cost of living have been key factors influencing voters in recent European elections, leading to a shift to the right in the political landscape. This growing dissatisfaction with the status quo has manifested in citizens demanding better working conditions and access to affordable housing across cities like Lisbon and Madrid. This unrest has intensified political attention on the housing crisis but has also created a climate that benefits extremist parties, as they capitalize on discontent to gain political support.
The European Policy Centre think tank has noted that radical right parties have started exploiting the housing crisis to push their political agendas, using migration policies as a tool to address the issue. Tinagli acknowledges that this exploitation has contributed to a sentiment of detachment from the EU and traditional parties among citizens, who feel their primary needs have been ignored. However, she sees this crisis as a potential wake-up call for the EU and its politicians, urging them to take action and address the housing crisis with concrete solutions to prevent further social unrest and political polarization.
Tinagli stresses the importance of understanding how the housing market functions and what has led to the current crisis in order to implement effective solutions. She believes that it is crucial to focus on the primary objective of providing homes for people, as losing sight of this goal has led to a situation where many EU citizens are struggling to access affordable and sustainable housing. The new special committee on housing will work over the next year to develop recommendations and solutions for the EU’s housing commissioner, with the goal of improving the supply of new homes and addressing the housing crisis across different member states.
Overall, Tinagli is optimistic that with political will and cooperation between different political groups, the EU can effectively tackle the housing crisis and provide affordable and sustainable housing options for its citizens. By working together to understand the root causes of the crisis and implementing tailored solutions, the EU can address the housing shortage and rising prices that are impacting people across the bloc. Through collaboration with member states, cities, and regions, the EU can develop comprehensive policies to improve access to housing and prevent further social unrest and political polarization.
