EU Launches First-Ever Affordable Housing Plan

The European Commission has presented the first European Affordable Housing Plan in response to a sharp housing crisis, driven by a 60% increase in house prices over the past decade. A new Pan‑European Investment Platform will launch in 2026, supported by a digital portal, an expert group and national hubs, alongside an additional €10 billion through InvestEU for 2026–2027.

What this means for inclusive finance

• Easier procedures for microenterprises: The plan foresees simpler reporting and reduced administrative burden for microenterprises and SMEs active in construction and renovation.
• Energy‑efficient solutions: The upcoming Citizens Energy Package (2026) focuses on tackling energy poverty and promoting home energy upgrades  – areas closely aligned with green microfinance.
• Support to vulnerable groups: Young people, students, essential workers and low‑income households are expected to benefit the most.
• New financing models: The Commission will provide technical assistance and promote innovative housing finance mechanisms, including blending, revolving funds, debt/equity and housing bonds, using EU funds where relevant.

This initiative marks a coordinated EU‑wide effort to expand access to affordable, sustainable and quality housing.

A progress report will be published before the end of the Commission’s current mandate.