Local and regional leaders across the European Union have joined forces with the European Investment Bank (EIB) to strengthen investment in affordable and sustainable housing, highlighting the urgent need to scale up financing to address Europe’s growing housing crisis.
During a plenary session of the European Committee of the Regions, policymakers, Members of the European Parliament, and housing sector representatives discussed how public and private funding can be better coordinated to accelerate the delivery of new homes. The discussions were held with EIB President Nadia Calviño and other senior European officials.
The EIB reaffirmed its commitment to significantly increase housing investment, with plans to raise financing to €6 billion in 2026, up from around €5 billion in 2025. The bank also plays a central role in the Pan-European Investment Platform, an initiative designed to combine public resources and private capital to expand housing supply across EU regions and cities.
Local and regional authorities emphasized that they are already addressing housing shortages on the ground but require stronger financial support to meet rising demand. They stressed that Europe will need substantial and sustained investment to meet housing needs, with European Commission estimates suggesting around €153 billion per year is required to build approximately two million homes annually across the EU.
The initiative aims to improve cooperation between the EIB, cities, and regions, ensuring that housing development is aligned with broader goals such as climate sustainability, energy efficiency, and social inclusion. A new Memorandum of Understanding between the European Committee of the Regions and the EIB was also signed to strengthen collaboration in housing, regional development, climate action, and social infrastructure.
EU leaders warned that housing must remain a priority in the next long-term EU budget, as competing funding demands could limit investment in affordable housing. They called for stronger cohesion policies and more flexible funding mechanisms to ensure that local authorities can deliver housing solutions tailored to regional needs.
EIB President Nadia Calviño stated that investment in housing and resilient cities is essential for strengthening Europe’s competitiveness and ensuring economic growth. She emphasized that the EIB aims to support projects that translate European policy goals into tangible improvements for citizens across the region.
Policymakers agreed that addressing the housing crisis will require coordinated action across all levels of government, including faster permitting processes, increased construction capacity, and improved access to financing for local authorities and developers.
