The European Commission is changing the rules of the housing market: What it means for Greece

The housing crisis has emerged as one of the European Union’s most significant policy challenges, with the European Commission gradually expanding its role in a policy area that until recently was regarded as largely the exclusive responsibility of Member States.

The latest development comes with the European Commission’s registration of the European Citizens’ Initiative (ECI) entitled “Right to Housing! Now and Forever”, which calls on the EU to adopt a far more ambitious framework for affordable, sustainable and equitable housing.

The initiative has now entered a six-month signature collection period and proposes, among other measures, the establishment of an EU Housing Agency, the adoption of a European Housing Act, and the formal recognition of housing as a fundamental social right.

The Commission’s decision to register the initiative does not imply endorsement of its proposals. Nevertheless, it clearly signals that housing is becoming an increasingly prominent issue on the European policy agenda, following the recent presentation of the European Affordable Housing Plan.

Four Pillars of Reform

The initiative is structured around four key pillars: Recognition, Emergency Response, Regulation, and Structural Reform.

The first pillar calls for the formal recognition of the Right to Housing through a Council Recommendation, the creation of a European Pact on Housing, and the alignment of EU funding with social criteria designed to protect tenants and limit the financialisation of housing.

The second pillar treats the housing shortage as a state of emergency. It proposes activating EU crisis-response mechanisms, making greater use of vacant buildings, accelerating property conversions and renovations, and introducing safeguards to protect tenants from evictions linked to energy-efficiency renovation projects financed through EU funds.

Tighter Oversight of the Housing Market

The third pillar focuses on housing market regulation.

The proposals extend well beyond short-term rental platforms and address policy areas that have traditionally fallen within national competence.

Among the measures proposed are:

• the introduction of a European Housing Act;
• mandatory registers of vacant buildings;
• an EU-wide inventory of available housing stock;
• stricter regulation of short-term rental platforms;
• tighter restrictions on investment migration programmes such as Golden Visa schemes; and
• disincentives for leaving residential properties vacant and for speculative investment practices.

Taken together, these proposals represent the first comprehensive attempt to place parts of Europe’s housing market under a common regulatory framework aimed at curbing excessive investment-driven speculation.

A New European Housing Fund

The fourth pillar focuses on long-term structural reforms.

The initiative proposes the creation of a permanent European Housing Fund with a budget of at least €220 billion under the next Multiannual Financial Framework (2028–2034).

It also calls for greater fiscal flexibility, allowing public investment in housing to be treated more favourably under EU fiscal rules rather than counting fully towards national budget targets.

In parallel, the proposal advocates establishing an EU Housing Agency responsible for collecting comparable data on rents, housing costs, vacant dwellings and social housing across Member States. The agency would also evaluate the effectiveness of EU funding and provide technical assistance to national governments and local authorities.

Renovating Existing Buildings Rather Than Focusing Solely on New Construction

Another defining feature of the initiative is its emphasis on making better use of Europe’s existing building stock.

Rather than relying primarily on new residential development, the proposal calls for strong fiscal and financial incentives to support the conversion and renovation of existing buildings, including, where permitted under EU law, full VAT exemptions for sustainable renovation works.

It also seeks to incorporate stronger social safeguards into the implementation of the Energy Performance of Buildings Directive (EPBD) to ensure that energy-efficiency upgrades do not result in the displacement of existing tenants.

What It Could Mean for Greece

For countries such as Greece—where both house prices and rents have risen sharply in recent years due to limited housing supply, strong tourism demand and sustained investment activity—these European initiatives could have significant implications.

While many of the proposals are considered highly ambitious and are likely to face resistance from Member States seeking to retain full control over housing policy, the overall direction is becoming increasingly clear: housing is no longer viewed solely as a matter of national policy but is steadily evolving into a European priority.

The European Commission appears increasingly willing to deploy a broader range of financial, regulatory and institutional tools aimed not only at expanding housing supply but also at fostering a housing market that balances social cohesion, environmental sustainability and long-term economic resilience.

The registration of the new European Citizens’ Initiative represents the latest step in that direction, even though the implementation of its proposals remains far from certain.