Is a European Commissioner for Housing Good News?

In her speech to the European Parliament last week, Ursula von der Leyen identified housing access as a priority for the upcoming mandate: "People are struggling to find affordable housing. That is why, for the first time, I will appoint a Commissioner with direct responsibility for housing. We will develop a European Affordable Housing Plan." This announcement is promising but requires some clarification.

Housing as a European Priority

The first piece of good news is that housing is no longer just a concern for major cities and national governments; it has now become a priority for the European Union itself. A report from Housing Europe last year indicated that 47 million people in Europe are at risk of housing poverty, meaning their housing expenses (rent, utilities, and associated costs) exceed 40% of their household income. This crisis, particularly affecting large cities, stems from various factors: rising housing costs driven by speculative real estate investments, increased construction and energy costs without a proportional increase in incomes, and a decline in public investment in affordable housing alongside the surge in short-term rentals that has reduced the housing stock.

Thus, the elevation of housing issues on the European political agenda is indeed positive. Until now, the measures implemented by the Union in this area have been minimal, with national governments and local administrations acting independently and with little coordination. Apart from isolated initiatives with more symbolic than economic impact (such as the Urban Agenda's Housing Partnership Action Plan), coordinated housing policies are a relatively new development in Brussels.

However, there are several points of concern.

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SDA Bocconi School of Management