On 16 December, the European Commission has presented its first-ever European Affordable Housing Plan, setting out a comprehensive framework to address one of Europe’s most pressing socio-economic challenges: access to affordable, sustainable and good-quality housing. The Plan was published alongside a renewed Communication and a proposed Council Recommendation on the New European Bauhaus (NEB).

With house prices increasing by over 60% and rents by more than 20% over the past decade, the Plan recognises housing as both social and competitiveness issue, directly affecting skills attraction, innovation capacity and territorial cohesion. While housing remains primarily a national, regional and local competence, the Commission positions the EU as a strategic enabler, supporting implementation through regulatory simplification, investment mobilisation, innovation and strengthened multi-level governance. The Plan is particularly relevant for local and regional authorities, as well as their R&I stakeholders, who will play a central role in translating EU-level actions into place-based solutions.

A four-pillar approach with strong territorial relevance

The Affordable Housing Plan is structured around four pillars: boosting housing supply; mobilising investment; enabling immediate support while driving reforms; and supporting the most affected groups. Across all pillars, the Commission explicitly acknowledges the diversity of housing challenges across territories – from housing stress in cities and tourist regions to underused housing stock in rural and depopulating areas. For regions and cities, the Plan shows increased EU support in areas where local capacity, innovation and experimentation are essential. This includes urban regeneration, renovation and repurposing of existing buildings, digitalisation of permitting processes and new governance models for housing provision.

Innovation, skills and the construction ecosystem: an R&I dimension

A central element of the Plan is the European Strategy for Housing Construction, which aims to modernise the construction and renovation sector through innovation, industrialisation and circularity. The Commission highlights productivity gaps, skills shortages and innovation deficits in the sectors. For R&I stakeholders, this opens concrete opportunities linked to: modern methods of construction (eg, digital building processes, industrialised solutions); low-carbon, bio-based and circular materials; applied research and demonstration projects supporting scalable, cost-efficient housing solutions; skills development and upskilling.

The Commission also underlines synergies with EU Missions on Climate-Neutral and Smart Cities and Adaptation to Climate Change, reinforcing the relevance of housing within broader urban and territorial innovation agendas.

Governance and the European Housing Alliance

Recognising the need for stronger coordination, the Commission will establish a European Housing Alliance bringing together EU institutions, Member States, regions, cities, housing providers, industry, social partners and civil society. This platform will support mutual learning, data-sharing and implementation support, including for reforms at the local and regional levels. Additionally, a first-ever EU Housing Summit, planned for 2026, will further put housing high on the political agenda. For ERRIN and its members, these governance structures offer new entry points to contribute regional perspectives, showcase innovation-driven solutions and strengthen the role of R&I in housing policy.

Investment, State aid and new financing platforms

On the financing side, the Commission builds on the €43 billion already mobilised under current EU programmes and announces further steps to mobilise public and private investment. Key developments include: revised State aid rules, making it easier for public authorities to support affordable (not only social) housing without prior notification; a forthcoming Pan-European Investment Platform for affordable and sustainable housing, developed with the EIB and national and regional promotional banks; continued and expanded use of cohesion policy funding, InvestEU and future National and Regional Partnership Plans under the post-2027 EU budget. These measures are expected to lower administrative barriers and improve access to blended finance, project aggregation and advisory support - areas where regional and local authorities often face capacity constraints.

Why this matters for ERRIN and its members

The European Affordable Housing Plan clearly positions housing at the intersection of innovation, sustainability, skills and territorial development. For ERRIN, this could create a strategic policy framework to: embed housing challenges into regional innovation strategies and smart specialisation priorities; strengthen links between research, innovation and local implementation in the built environment; influence emerging EU initiatives, partnerships and funding instruments where regions and cities are key actors

ERRIN will continue to monitor developments, engage with the European Housing Alliance and explore how its work and member networks can contribute to delivering innovative, place-based solutions for affordable and sustainable housing across Europe.

Find more information about the European Affordable Housing Plan and related initiatives here.