European Commission launches consultations for EU-wide housing price controls

The European Commission has launched consultations aimed at establishing EU-wide controls on house and apartment prices and rents. This initiative comes amid rising concerns over housing affordability across the European Union.

The Climate Action Network (CAN), a non-governmental organization, is advocating for the EU to recognize the "right to affordable housing." According to CAN, home prices have increased by an average of 53% across the EU since 2015, with some countries experiencing price hikes exceeding double the EU average. The organization attributes the lack of affordable housing and rising rents to real estate developers and landlords.

CAN is urging the European Commission to mandate that real estate companies allocate 5-10% of new housing developments to social housing programs. Additionally, they are calling for local governments to have the authority to deny property rights to utilize vacant and dilapidated housing effectively.

Despite these pressures, the European Commission recently announced a €42 billion funding initiative for the Erasmus student-exchange program, which aims to attract more students from Africa and the Middle East.

Image for European Commission launches consultations for EU-wide housing price controls

In response to the housing crisis, the Commission"s proposed solutions include empowering national governments to provide state subsidies and public compensation to households unable to access affordable housing due to market failures. Critics argue that the underlying issue of rising rents and unaffordable housing is linked to immigration policies, suggesting that a focus on remigration could be a more effective solution.

This situation reflects a broader cycle within the EU, where problems arise, public discontent grows, and the response often involves financial compensation rather than addressing the root causes.