Housing climbs the agenda for European mayors

Housing has surged to the forefront of urban concerns in Europe, rising from seventh place to the second most pressing issue in just three editions of the Eurocities Pulse Mayors’ Survey. Notably, this year one in six mayors identified affordable housing as their top priority – twice as many as last year – while over a third selected it as one of their key concerns.

Closely following affordable housing is the issue of social inclusion and equity. Many mayors are focusing on reducing disparities, addressing segregation, and strengthening community cohesion.

Urban residents across Europe are grappling with soaring housing costs. Cities are striving to mitigate the consequences of this crisis,which is deeply intertwined with growing inequality and social exclusion, to secure housing for all.

“Our cities are at the forefront of this challenge,” says André Sobczak, Eurocities Secretary General. “Housing affordability has become critical as costs outpace incomes, pushing millions to the brink.”

In response, cities are deploying innovative solutions to alleviate housing shortages and affordability pressures. Budapest has launched a Housing Agency to provide affordable options and repurpose public buildings. Dublin is creating new social housing apartments by adapting and refurbishing vacant office and commercial buildings through the Adaptive Reuse.

Lyon has renovated 87 properties for families and students, while Barcelona reinvests public housing rental income into new developments and supports cooperatives through public land leases. Bologna’s Villaggio Gandusio project is also pioneering social-mix housing by integrating affordable public units with private residences to foster social inclusion and reduce isolation.

The European housing crisis demands a people-focused response that empowers city leaders to shape policies ensuring access to quality, affordable homes.

Cities are calling for a blend of long-term investment and transitional strategies, such as Housing First, which has proven effective in tackling homelessness by offering something as simple and essential as a stable housing unit.

Kathrin Gaál, Deputy Mayor of Vienna and Eurocities Shadow Commissioner for Housing, states the need for EU support: “We need to invest in local projects, embrace green building technologies, and ensure fair rent prices.”
A holistic approach to urban planning is also essential. Affordable housing must be integrated with transport links, green spaces and social infrastructure to foster resilience and reduce inequality.

The estimated investment gap in affordable housing stood at €57 billion in 2018 and may now have increased fivefold. Closing this gap is vital, not only to address the housing shortage but also to meet climate targets through energy-efficient renovations.

Cities like Vilnius support building upgrades with grants and one-stop shops for residents. Vienna is significantly investing in energy-efficient housing and targeted support for vulnerable groups, including single mothers.

Helsinki is also leading by example with its “Greenest of the Green” block, combining sustainable construction with affordability in new housing developments. Ghent’s ICCARus project is retrofitting homes for low-income residents, helping tackle energy poverty while fostering community engagement.

Meanwhile, short-term rentals and institutional real estate investments are intensifying the crisis by turning homes into speculative assets. Cities are demanding stricter regulations and mandatory transparency for large investors. Amsterdam has responded with robust regulation, capping short-term rentals to protect the housing stock and collaborating with the main platforms to enforce compliance.

Across Europe, cities are taking bold steps not only to address housing affordability but also to combat poverty, reduce inequalities and build inclusive communities. Measures include expanding social and essential services, fostering intergenerational links, supporting marginalised groups, and improving access to education, employment, and cultural life.

In the past six years alone, cities have invested more than €15 billion in strengthening social rights—enhancing access to childcare, healthcare, housing, education, and jobs—directly benefiting over 100 million people.

The third Eurocities Cities Social Summit, held at the European Parliament in March, marked a significant milestone as cities submitted 100 pledges towards the European Pillar of Social Rights.

Examples include Braga, which launched a free dental clinic, introduced digital health monitoring for older residents, and expanded housing subsidies. Zagreb has invested heavily in early education, mental health services, and housing reform, reallocating €70 million annually to expand public nursery provision. Florence allocated €36 million to green spaces, €20 million to public housing, and €4 million per year to rent subsidies.

Lyon Metropole has committed over €760 million to its 2025 social budget, covering housing, food aid, childcare, and youth programmes. Vice-President Hélène Duvivier warns: “Poverty and exclusion are not temporary—they are structural. The Social Pillar must guide EU priorities.”

At the heart of the summit was the launch of Eurocities’ new report – A new urban compass for the European Pillar of Social Rights. It outlines proposals for a renewed Action Plan that is ambitious, measurable and rooted in local realities. Key recommendations include a place-based social policy, using territorial impact assessments, introducing urban-level indicators, and giving cities a stronger role in shaping EU social policy.

Among the 20 principles of the European Pillar of Social Rights is the right to affordable long-term care services of good quality, particularly home care and community-based services. This principle is becoming increasingly vital as Europe’s cities face profound demographic transitions.

One of the most pressing demographic shifts facing cities is population ageing. By 2050, over 30% of the European Union’s population is expected to be over 65. This trend demands that cities rethink urban infrastructure, housing, healthcare and mobility to ensure dignity and accessibility for older residents.

Barcelona’s Elderly Housing Exchange Programme offers a creative response, enabling older adults to swap underused homes for accessible municipal apartments, and improving housing access for both seniors and younger residents.

At the same time, cities must balance these needs with those of younger generations to avoid putting undue pressure on their future, embodying the principle of intergenerational justice, by ensuring fairness and equitable opportunities across all age groups.