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Collaborating with Cities: A Key to Overcoming the Housing Crisis in the EU

News RoomBy News RoomNovember 30, 2024
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In an urgent call to action, Kathrin Gaál and Renaud Payre, Deputy Mayor of Vienna and Vice-President of Lyon Metropole respectively, emphasize the critical state of Europe’s housing crisis and the necessity for collaborative efforts between cities and the European Union (EU). They assert that housing is a fundamental right and that the EU must prioritize accessible and affordable housing solutions. With the appointment of Denmark’s Dan Jørgensen as the inaugural European Commissioner for Housing and the introduction of the European Affordable Housing Plan, they view these developments as a promising foundation for meaningful change. Rich in social, public, and affordable housing solutions, cities are prepared to partner with the EU to ensure that all citizens, especially vulnerable populations, have access to decent housing.

The housing crisis is most severe in urban areas, where demand significantly exceeds supply. As rising prices lead low and middle-income families to struggle, the statistics tell a stark story. By the end of the previous year, average rents in the EU had soared by nearly 25% compared to 2010, while house prices surged almost 50%. The devastating impact of these trends has left millions of Europeans burdened by housing costs. A recent survey highlighted that over half of the mayors from the 92 surveyed cities prioritize affordable housing as critical for the upcoming EU budget. Cities are not passively waiting for EU interventions; they are already implementing effective measures. In Lyon, local authorities are enforcing national regulations for affordable housing in new developments and combatting homelessness through targeted programs, while Vienna has established a world-renowned model for social housing, focusing on sustainability and support for vulnerable groups.

However, Gaál and Payre lament that city efforts are being hampered by insufficient support from both the EU and national governments. Many cities are struggling to balance the need for increased housing with the essential requirement for energy efficiency. Alarmingly, over half of city mayors report a lack of resources to adequately support their most vulnerable residents. The authors urge that the EU must enhance its commitment to partner cities by taking concrete actions rather than merely issuing symbolic gestures. This support is crucial not only for the well-being of citizens but also for allowing cities to continue their innovative approaches.

There are several key areas identified for necessary reform. The EU must revise its state aid regulations that currently limit social housing investment and restrict it to narrowly defined target groups. By broadening the scope of these investments, the EU can ensure that more citizens benefit from affordable housing. Furthermore, the next EU budget should specifically prioritize housing investments, with cities requiring accessible EU funds for both new housing construction and the renovation of existing public housing. The pressing shortage of social and affordable housing must be addressed with urgency, recognizing the scale of need across the continent.

Navigating the labyrinth of funding mechanisms is another challenge that cities face, thus technical assistance from the EU will be essential in unlocking funding opportunities and transforming ambitious housing plans into tangible results. The authors stress that social, environmental, and economic sustainability should be central to all housing investments, echoing the principles of the European Responsible Housing Initiative. By prioritizing high-quality and energy-efficient homes, cities can create housing that is not only accessible but also beneficial to the overarching community framework.

In conclusion, the collaboration between EU institutions and cities is paramount if the housing crisis is to be effectively tackled. Gaál and Payre assert that cities are already championing innovative housing solutions and yielding positive outcomes, yet their efforts cannot be sustained without the EU’s active partnership. Housing involves more than just physical structures; it is about fostering resilient communities and ensuring that no one is left behind. The authors call on President von der Leyen and Commissioner Jørgensen to turn their promises into actionable strategies. As Europe faces a pressing housing crisis, the time for decisive action is now; the opportunity for a truly collaborative effort is within reach, but it necessitates commitment and immediate steps from the leaders at the EU level.

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