Brussels, Belgium – The European Parliament adopted its recommendations on the housing crisis in the EU on March 10, 2026, proposing solutions for “decent, sustainable, and affordable” housing.
Adopted by 367 votes in favour and 166 against, with 84 abstentions, the recommendations aim to improve living standards by addressing the increasing prices and shortages through support of renovation and construction.
“Europe is short of 10 million homes, rents are up by more than 30%, and young people and families are paying the price. For the first time ever, the European Parliament is setting out a roadmap,” said Borja Giménez Larraz, rapporteur of the housing report, in a statement.
Tourism’s impact on housing
Policymakers also call for a law to balance tourism with access to affordable housing. Due to short-term rentals, certain cities in Europe, such as Barcelona, have faced massive housing problems.
Rents in the city have skyrocketed by 60%, and sale prices by 90%. This has pushed Spain to face housing exclusion, with the number of people owning at least 10 homes increasing by 20%, as reported by the Guardian.
Barcelona is one of the major cities to have been pushing back at tourists with different measures, including a higher overnight tourist tax introduced earlier in 2026 and protests in 2025. According to protesters, rents are high because of BnBs and also the expats who move to the Catalan city.
“Housing is a fundamental social priority, and in the past year, our committee has demonstrated that the housing crisis in the EU is real, affecting people in all member states,” said Irene Tinagli, Chair of the Housing Committee, in the statement.
Although the EU already has legislation regulating short-term rentals, MEP Vicent Marzà is advocating for additional measures at the EU level. These would include ensuring that people spend no more than 30% of their disposable income on housing and introducing restrictions on buying homes purely as investment properties.
Shortage of housing
Members of the European Parliament (MEPs) are calling for an “adequate” share of public and social housing in EU cities in order to “increase the affordability and supply of housing for vulnerable people.”
The Netherlands is facing a severe housing shortage that has stretched to 410,000. In 2025, it accounted for 4.8% of the housing stock. To tackle this issue, the cabinet set a target to build 100,000 new homes per year in 2024, and that has been adopted by the administration.
Nevertheless, in 2025, the increase in new homes, new construction, and conversions decreased for the third consecutive year.
Permits, investment, and tax relief
MEPs also requested simplified permit procedures and a 60-day deadline for granting permits. Currently, there is no uniform EU regulation, and permits are regulated by national and municipal authorities. This means that the length, number of steps, and deadlines vary per country.
Additionally, to enhance construction and renovation, lawmakers demanded an improvement in the skilled workers’ conditions through training and investment in the sector. They also encouraged better coordination of existing funding and reallocating unused Recovery and Resilience Plan resources to support the construction and renovation of social, public cooperative, and affordable housing.
Stakeholders are also calling for tax incentives to support low and middle-income households, the removal of tax barriers for first-time buyers, and tax conditions that make long-term rentals more accessible and affordable.
Featured image: European Parliament via Facebook.
