The European Parliament has stepped up pressure for stronger action on the housing crisis, calling for a broader European response to the sharp rise in house prices and rents that has made home ownership increasingly unattainable for large parts of society in both Cyprus and the wider EU.
In its final report on the housing crisis, approved by the European Parliament plenary on Tuesday by 367 votes to 166, with 84 abstentions, MEPs warned that millions of Europeans are living in precarious housing conditions and called for practical measures to support decent, sustainable and affordable housing.
Improving living standards
To secure decent housing, Parliament wants the European Commission’s upcoming European affordable housing plan to include dedicated funding for renovations, improvements in energy efficiency and measures to combat energy poverty.
MEPs also argue that all new homes should meet clear standards on insulation, energy performance and air quality.
Against the backdrop of the rapid expansion of short term rentals, Parliament is calling for future legislation to strike a balance between tourism growth and access to affordable housing.
MEPs are also asking for public and social housing to make up a sufficient share of the housing market in EU cities, with the aim of improving affordability and increasing supply for vulnerable groups.
The report strongly condemns squatting and calls for stricter measures to protect property owners, while also urging member states to strengthen the rights of tenants.
Investment and support measures
Parliament is calling for tax incentives to support low and middle income households, exemptions from transfer taxes and fees for first time young buyers, and tax conditions that would make long term rentals more affordable.
The report also calls for greater EU investment in the sector through better coordination of existing funding and the reallocation of unused Recovery and Resilience Facility resources to support the construction and renovation of social, public, cooperative and affordable housing.
MEPs further argue that any revision of state aid rules should facilitate public investment in social housing, while respecting the different structures of national housing markets.
They are also asking the Commission to introduce a package of simplification measures to cut bureaucracy, including faster licensing procedures, digital processes and a 60 day deadline for competent authorities to process applications.
Construction and renovation capacity
The report says the EU must strengthen its industrial capacity in construction and renovation. MEPs are calling on the Commission to support innovative and sustainable products, reinforce the single market for raw materials and include minimum “Made in EU” origin clauses for construction components in projects co-financed by the EU.
They also want action to improve working conditions for skilled workers through training and fair wages, alongside easier labour mobility within the EU, mutual recognition of professional qualifications and, where needed, recruitment of skilled workers from third countries.
Borja Giménez Larraz, the report’s rapporteur from the European People’s Party in Spain, said a generation that cannot afford to buy a home cannot build its future.
“Europe has a deficit of 10 million homes while rents have risen by more than 30%, and the price is being paid by young people and families,” he said.
He described the report as the first roadmap drawn up by the European Parliament to tackle the crisis, combining simplification measures, faster permits, investment in skills, legal certainty, protection for owners and tenants, mobilisation of public and private investment and stronger support for young people, families and persons with disabilities.
“No more excuses. Member states must now deliver results,” he said.
Irene Tinagli, chair of the special committee and a Socialist MEP from Italy, said housing is a fundamental social priority and that the committee’s year long work had confirmed the scale of the crisis across the EU.
“The housing crisis has far-reaching consequences for Europeans’ quality of life, affecting health, social cohesion and access to economic opportunities,” she said, adding that EU action is necessary to restore balance and fairness to the housing market.
Focus on young people and families
DISY and EPP MEP Michalis Hadjipantela said particular emphasis had been placed on support for young people and families through an amendment he co-signed.
The amendment calls on the European Commission to take immediate initiatives to address the housing crisis facing young people, with the aim of improving access to adequate and affordable housing.
“For small states such as Cyprus, access to affordable housing is crucial for young families,” Hadjipantela said. “The decision sends a strong message that the EU is moving towards meaningful measures to protect low and middle income citizens.”
Cyprus measures already under way
In Cyprus, the Interior Ministry is already implementing housing measures based on two main pillars: increasing housing supply and strengthening citizens’ purchasing power.
More than €100 million is being allocated in 2025 to address the housing issue.
Since 2 March 2026, a new call has been in force for revised housing schemes aimed at revitalising mountain, border, disadvantaged and rural areas. The ministry says the updated plans include improvements intended to make them more attractive to beneficiaries as part of the state’s wider housing policy.
How affordable is housing?
According to the latest statistics, housing costs in 2024 exceeded 40% of disposable income for 9.8% of households in EU cities and 6.3% of households in rural areas.
More than a quarter of Greeks living in cities, 29%, faced housing costs above 40% of income, while only 2.3% of Cypriots in urban areas faced the same burden.
In Greece, around 35.5% of household income went on housing costs in 2024, the highest share in the EU.
Between 2015 and 2024, house prices across the EU rose by an average of 53.4%. The sharpest increases were recorded in Hungary, up 209.5%, Lithuania, up 135%, and Portugal, up 124.4%. In Cyprus, the increase stood at 12.6%.
Renting has also become more expensive. Between 2010 and the first quarter of 2025, rents across the EU rose by an average of 27.8%. Rents increased in every EU country except Greece, where they fell by 11%.
The largest rent increases were recorded in Estonia, up 220%, Lithuania, up 184%, Hungary, up 124%, and Ireland, up 115%.
Part of the pressure has been attributed to the expansion of short term rentals, which have removed homes and apartments from the long term market.