Cities speak out for affordable and sustainable housing 

How can the EU help cities tackle the housing crisis? Across Europe, prices are soaring, and finding an affordable apartment is becoming increasingly difficult. 

Although housing is not an EU competence, expectations are high for the upcoming European Affordable Housing Plan, expected in early 2026. Local governments are already mobilising to ensure that this initiative reflects their realities, matches their ambitions, and goes beyond the simple exchange of good practices. 

With this in mind, we wanted our members to have the chance to speak directly with the European Commission and make their voices heard. A few days ago, city leaders from across Europe sat down with Matthew Baldwin, Head of the European Commission’s Housing Taskforce, to dig into the topic, propose solutions, and share local experiences. 

Democracy, climate, cohesion: the housing crisis touches it all 

For Jürgen Czernohorszky, Executive City Councillor of Vienna, affordable housing is “Essential for social cohesion, the success of the Green Deal, and the future of democracy”. The city combines a robust social housing stock with a housing-first strategy. Vienna also integrates affordable housing into its gas phase-out plan, shielding households from high and volatile energy prices and prioritising renovation for long-term resilience. Crucially, the EU plan should also address cooling as a key dimension of livable homes and cities. 

Utrecht’s Deputy Mayor, Dennis de Vries, cautioned against rushing solutions that compromise sustainability: “We don’t want to compromise on quality for short-term gains,” he said, advocating for bio-based, circular, and future-proof construction that meets both climate and social objectives. 

Tristan Riom, Vice President of Nantes Métropole, called for stricter land-use criteria to avoid repeating post-war mistakes of sprawling, low-quality developments: “Let’s build on already-developed land, not on our green land.” 

The Board advocates for renovation, the use of underused or vacant buildings and spaces, and the development of new urban rules and innovative ideas. Stephan Brandligt, board member of Klimaatverbond, highlighted a neglected issue: “One cause of the housing crisis that hasn’t been discussed is the average number of people per household. In the Netherlands, financial incentives encourage people to live alone rather than share a home.” 

“We Need more than best practices” 

Budapest expressed concern that the EU’s plan may focus too narrowly on sharing good practices, without adapting the funding framework to meet the needs of local governments under the most pressure. “The spatial distribution of housing stress doesn’t mirror traditional regional development metrics. This needs to be taken into account,” said Bálint Misetics, senior advisor to the mayor of Budapest. 

Tristan Riom from Nantes Métropole also pointed to a gap between ambition and delivery: “We should be doing 10,000 renovations a year in France, but only 4,000 are being carried out. The main bottleneck isn’t the permitting rules—it’s the capacity within public administrations. Will the EU support us in hiring civil servants to make it happen?” 

Energy Cities board members called for stronger EU support to boost local administrative capacity and embed housing investments into broader social, energy, and urban planning strategies. 

What’s Next? 

The European Affordable Housing Plan is expected in early 2026, following consultations and advisory work currently underway. While it may not introduce new regulations, local governments hope it will become a springboard for stronger cooperation, streamlined financing, and practical tools to scale up renovation, densification, and social housing initiatives. 

Energy Cities will continue to ensure that municipal voices shape the EU’s housing agenda—and that the link between housing justice and climate action remains at the heart of the transition. 

“If we don’t provide decent, sustainable, and affordable housing, our democracy will fall apart.” 
— Jürgen Czernohorszky, Vienna 

Read more on how cities are striving to address the housing emergency here.