Affordable and Decent Homes for All: A Comprehensive Summary of the S&D Group’s Plan to Tackle Europe’s Housing Crisis
Introduction
The document, titled “Affordable and decent homes for all”, is a position paper published by the S&D Group (Socialists and Democrats) in the European Parliament. It frames the ongoing housing situation not merely as an economic inconvenience but as a human rights emergency and a structural threat to European society. According to the paper, a home is far more than a roof over one’s head; it is the foundation for family life, personal security, and community belonging. However, for millions of Europeans, especially tenants and first-time buyers, accessing a decent home has become harder than ever.
Between 2010 and 2024, house prices across the European Union increased by 55.4%, while rents rose by 26.7%. These averages mask dramatic disparities: in Hungary and Estonia, house prices more than tripled, while rents in Estonia skyrocketed by 212%, followed by Lithuania (175%) and Hungary (114%). As a result, low-income households now spend nearly 40% of their income on housing costs. Approximately 16% of the EU-27 population lives in overcrowded housing, and 19.2 million people experience severe decent homes deprivation. Homelessness affects over 1.2 million Europeans, a population comparable to entire cities like Prague or Milan. The S&D Group argues that these figures demand an immediate, coordinated, and values-driven European response.
The paper is structured around nine core chapters, ranging from public investment and speculation to the needs of specific groups such as young people, the elderly, women, persons with disabilities, and rural communities. At its heart is a call for an EU Affordable Housing Plan backed by €300 billion in total investments, including €100 billion in direct grants. This summary will explore each section in detail, maintaining focus on the key themes of affordability, decent homes, sustainability, and social justice.
The Right to Housing: A Fundamental Principle
The S&D Group insists that access to adequate housing is a fundamental human right, recognized by the European Social Charter and Principle 19 of the European Pillar of Social Rights. The right to housing is integral to dignity, equality, inclusion, and personal security. Therefore, the EU and its Member States have an obligation to ensure this right is not just acknowledged but progressively enforced through legislation.
The document points to Protocol 26 of the Treaty on the Functioning of the European Union, which allows for services of general economic interest (SGEI) including affordable decent homes, to be tailored to national, regional, or local needs. Article 34 of the EU Charter of Fundamental Rights further recognizes the right to social and housing assistance to combat exclusion and poverty. The S&D Group calls on the European Commission to involve key stakeholders tenants, owners, local authorities, trade unions, and civil society in the rollout and revision of the upcoming EU Affordable Housing Plan. The message is clear: a home is a human right, not a commodity for speculation.
More Public Investment in Decent, Affordable, and Sustainable Homes
One of the most concrete proposals in the paper is a massive increase in public investment. The S&D Group calls for a dedicated EU instrument totaling €300 billion, of which €100 billion should be in direct grants. This funding must be long-term, predictable, and flexible, delivered through grants, equity, loans, and guarantees without excessive administrative burden. Crucially, the document sets specific targets: 30% of newly funded housing should be affordable for low-income earners and another 30% for middle-income earners. Priority must be given to rental, public, cooperative, and non-profit housing models explicitly designed to counter the profit-maximization logic embedded in traditional real estate value chains.
The paper also advocates for repurposing unclaimed Recovery and Resilience Facility (RRF) funds toward affordable, climate-resilient decent homes. It calls for strengthening the European Regional Development Fund (ERDF) and the European Social Fund+ (ESF+) to support housing investments, especially in rural and disadvantaged areas. Public support and procurement processes must include social conditionality, such as respecting labor rights, preventing speculative resale, and preserving long-term affordability. Without such safeguards, public resources risk fueling the very exclusion they aim to solve.
Reforming EU Economic Rules to Prioritize Housing
The housing crisis is also a macroeconomic threat. Soaring housing costs hamper labor mobility, fuel regional disparities, and undermine access to public services. The S&D Group demands a bold reinterpretation of the Stability and Growth Pact (SGP) to exclude investments in affordable and decent housing from public deficit limits. This would allow Member States to invest without penalty, recognizing housing as strategic public investment rather than a budgetary burden.
Furthermore, the Group insists that decent homes be made a strategic priority in the European Semester. Country-Specific Recommendations (CSRs) should address housing challenges, and the Social Scoreboard should include indicators on housing exclusion, energy poverty, and access to social housing. By integrating housing into the EU’s economic governance framework, the S&D Group aims to align national reforms with social and climate goals.
An End to Speculation: Tackling Financialisation and Empty Homes
A major theme of the paper is the need to end the financialisation of housing. Over recent decades, housing has been transformed from a social good into a profit-driven asset. Real estate investment trusts, mortgage securitization, and global investors have deepened inequality, especially in major cities and tourist-heavy regions. The S&D Group calls for exploring a ban on overseas real estate purchases and for giving priority to residents over foreign buyers. It also demands a European transparency register for all real estate transactions and expanded regulatory tools to address systemic risks from speculative investment.
The document also tackles tax policies. Golden Visa schemes, capital gains exemptions, and tax breaks for investment funds distort markets, drive up prices, and deepen inequality. The S&D Group demands an EU-wide assessment of how such tax incentives affect housing affordability, followed by decisive action to eliminate harmful practices. It even suggests considering a special EU-level property tax on non-EU buyers purchasing second decent homes or luxury units, with revenues earmarked for an EU housing affordability fund.
On empty decent homes, the paper notes that while millions struggle to find a home, significant numbers of houses remain unoccupied for speculative purposes. The S&D Group calls for stronger regulation to prevent privatization of public housing stock and to support district renovation approaches that bring vacant buildings back into use. Higher EU co-financing rates should be available for projects that reconvert vacant or abandoned buildings into affordable housing.
Time for EU Action on Short-Term Rentals
The unchecked rise of short-term rental platforms (such as Airbnb) has become a major disruptor of Europe’s housing markets. By shrinking the supply of long-term rentals, these platforms worsen shortages and drive up rents, particularly in tourist-heavy cities, coastal areas, and islands. The current EU legal framework is fragmented and inconsistent, leaving local authorities uncertain about their regulatory powers.
The S&D Group has commissioned a legal study proving there is a clear basis for EU action that respects subsidiarity while providing a coordinated framework. The Group demands urgent legislative proposals that include: a clear and uniform definition of different categories of hosts; proportional measures such as nightcaps, authorization schemes, and zoning restrictions in high-pressure areas; robust safety and anti-discrimination standards; and effective enforcement tools for local authorities. The European Commission has promised a legislative proposal on short-term rentals, and the S&D Group will push for swift adoption.
Building More and Better Homes for Low- and Middle-Income Earners
The housing crisis now affects not just the poor but also nurses, teachers, and builders who can no longer afford to live in the cities they serve. While housing remains primarily a national responsibility, EU rules on state aid and SGEI must not block progress. The S&D Group calls on the European Commission to expand the definition of decent homes that can be supported under state aid rules to include low- and middle-income earners. This requires a fundamental reform of the SGEI package and state aid rules to ease investments in public housing programs, combat segregation, and prevent depopulation in rural areas.
The Group also wants to extend the InvestEU fund to cover people whose income is too high for social housing but too low for market-rate housing. Small project leaders and very affordable housing projects should be included. The EU cannot remain passive while the housing crisis tears apart its social fabric.
A Home for Everyone: Specific Groups and Inclusive Policies
The paper dedicates extensive space to vulnerable groups, emphasizing that homelessness is not negotiable. The S&D Group calls for the Housing First approach which prioritizes providing a stable home without preconditions, to become the standard across all EU Member States. It demands a ban on discrimination against homeless people EU-wide, including classifying aporophobia (hatred of the poor) as a hate crime. The European Platform on Combatting Homelessness (EPOCH) should be strengthened to coordinate best practices, including early warning systems to prevent evictions.
On child poverty, the Group demands a binding EU commitment to eradicate child poverty in housing by 2030: no child should live in a cold, overcrowded home. Evictions of families with children should be banned before alternative long-term housing is secured. A dedicated budget of at least €20 billion for the European Child Guarantee is proposed to address decent homes needs.
For tenants, the S&D Group wants strengthened protections across the EU, including transparent, long-term rental contracts written in intelligible language, free legal dispute resolution, and EU-level measures to contain speculative dynamics. Mobile workers including cross-border, seasonal, and third-country workers must have fair access to decent, independent housing, with abusive practices like forced employer-provided accommodation prohibited.
The document also highlights that housing insecurity is not gender-neutral. Women face lower wages, unstable work, and disproportionate unpaid care, limiting access to secure housing. The S&D Group calls for equal access to credit, mortgages, and rental housing, as well as increased funding for emergency shelters for victims of domestic violence. Gender mainstreaming must be integrated into decent homes design and community planning.
For persons with disabilities, the Group demands full implementation of the EU Strategy on the Rights of Persons with Disabilities 2021-2030, with increased financial assistance for home adjustments and clear requirements for accessible new builds. For young people, nearly half of those aged 18-34 still live with parents due to high costs. The Group wants best practices on first-time-buyer initiatives implemented as flagships in the Affordable Housing Plan, and affordable student housing recognized as a strategic dimension of education policies.
Older people face issues like “prisoners of the fourth floor” living in buildings without elevators. The S&D Group calls for intergenerational housing programs that connect older people with students, co-financed by EU resources. For the LGBTQI+ community, the Group demands integration of equality objectives into housing policies, inclusive shelters, and capacity building for housing authorities. For Roma and Traveller communities, the paper recalls that 77% of Europeans believe being Roma is a disadvantage, and the EU Roma Strategic Framework must end housing deprivation and overcrowding by 2030.
Supporting Rural and Depopulated Areas, Islands, and Outermost Regions
While cities grab headlines, rural and depopulated regions face a hidden housing crisis: shortages, poor conditions, and lack of infrastructure. This drives away young people and families, deepens economic decline, and widens the urban-rural divide. The S&D Group calls for investment in public and cooperative housing in rural areas, tailored to families, older people, and mobile workers. EU islands and outermost regions face unique challenges from geographical isolation, limited land, and pressure from mass tourism. Targeted housing policies and a study into EU-level barriers to rural construction (such as accounting rules that discourage long-term investment) are needed.
Sustainable and Healthy Homes: Energy Renovations for All
Finally, the paper links decent homes to climate and health. Between 35 and 72 million Europeans face energy poverty, forced to choose between heating and eating. Renovations must be affordable and inclusive, protecting low-income families from displacement. The S&D Group demands an EU Renovation Loan a new instrument to fund the Renovation Wave, with the European Investment Bank providing low-interest, long-term loans for vulnerable households.
The Group also calls for an EU Strategy for clean housing and construction, addressing indoor pollutants like VOCs and mould. A deepened EU competition investigation into construction materials is needed, as a few dominant actors drive up costs. The document promotes sustainable materials like wood and circular economy principles, including stronger targets for re-use and recycling of non-hazardous construction waste. Separate renovation standards for old and new buildings in the next revision of the Energy Performance of Buildings Directive would prioritize impactful measures and district-wide energy solutions.
Conclusion: Homes for People, Not for Profit
In summary, the S&D Group’s position paper is a sweeping, ambitious blueprint for tackling Europe’s housing crisis. It demands €300 billion in investment, fundamental reforms to EU economic and state aid rules, strict regulation of short-term rentals and speculation, and a human-rights-based approach that prioritizes the most vulnerable. The recurring mantra is clear: affordable and decent homes for all, not profit for a few. With homelessness rising, rents soaring, and social cohesion fraying, the paper argues that the EU must act now or risk breaking its promise of a just and inclusive Europe. The upcoming European Affordable Housing Plan, to be presented by Commissioner Dan Jørgensen, is the moment to turn these proposals into reality.
Also Read: 2017 Housing Affordability Response Team (HART) Recommendations