The Commission is expected to present, on 16 December 2025, a new plan to address the lack of housing supply and rising housing costs in Europe.

Maroš Šefčovič, European Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency, confirmed the planned launch date during a debate in the European Parliament on 13 November, emphasising the need for combined efforts across the three institutional levels – European, national and local.

The announcement follows the call made by the leaders of the Member States, meeting at the European Council on 23 October, urging the European executive to “ swiftly present an ambitious plan for affordable housing”, with the aim of complementing the efforts of Member States – which will continue to hold primary competence for defining housing policy.

The public consultation on the European Affordable Housing Plan was published on 14 July 2025 and remained open until 17 October, receiving more than 6,300 contributions, of which 244 (3.9%) were from Portugal.

The package of measures to be presented is also expected to include the already announced revision of State aid rules for services of general economic interest, extending the scope to include housing among the sectors – currently transport, energy and communications – for which Member States do not need to request prior authorisation from the Commission.

The approach of the Housing Package should focus, first and foremost, on strengthening the supply of public and private housing – with the European Parliament’s Special Committee on the Housing Crisis in the EU (HOUS) having identified the rising cost of housing supply as one of the main causes of the crisis, exacerbated by slow licensing procedures, excessive tax burdens on housing, rising construction costs and insufficient investment in the sector.

According to EUROSTAT indicators, on average across the European Union, housing prices have risen by 24% in real terms since 2015, while rents have increased by an average of 45%, with rises of more than 125% in cities such as Lisbon. Meanwhile, investment volumes and new building permits have dropped significantly in recent years.

To address this challenge, it is anticipated that the Housing Package will also include a Strategy for Construction, aimed at creating a regulatory and financial framework that facilitates the implementation of the Energy Efficiency Directive and the Energy Performance of Buildings Directive.

A proposal for a Council Recommendation on the New European Bauhaus is also planned, an initiative that will seek to bring together the goals of the European Green Deal, supporting and rewarding architectural projects that provide sustainable and affordable housing solutions.

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