According to recent data from the European Builders Confederation (EBC), 99.9% of the construction sector in the European Union is composed of small and medium-sized enterprises (SMEs), of which 94% are micro-enterprises operating primarily at the local level. These businesses are not merely economic units; they are vital actors in local employment, guardians of traditional know-how, and contributors to social cohesion. Through the projects they undertake, they generate value for their communities and offer practical solutions to pressing issues such as residential renovation, improvements in energy efficiency, and the development of new housing at affordable prices.
The housing crisis in Europe manifests in multiple ways. In 2023, more than two-thirds of Europeans lived in owner-occupied homes, yet 47 million people reported being unable to adequately heat their homes. At the same time, approximately 10% of the population spends over 40% of their income on housing and related costs. High land prices, strict lending conditions, and instability in supply chains make it increasingly difficult to build new homes—especially for young people and families. In the field of renovation, energy poverty and limited household budgets often make essential upgrades unaffordable, despite their long-term benefits.
Small and medium-sized construction enterprises are at the core of the solution to Europe’s housing challenges, as they combine local expertise, job creation, and social value. Despite facing significant barriers—such as limited access to finance, complex regulatory frameworks, rising costs of materials and energy, and a persistent shortage of skilled labour—they are well positioned to contribute meaningfully to the provision of affordable, high-quality, and sustainable housing, provided that a coherent and supportive policy framework is established.
In this context, the European Builders Confederation (EBC) underscores the importance of securing long-term funding through the EU budget, simplifying regulatory procedures, strengthening the capacity of local authorities to make use of European funding, promoting public-private partnerships, upgrading and utilizing the existing building stock, striking a balance between innovative and traditional construction methods, and investing in human capital to address skill shortages. With the right policies and support, construction SMEs can serve as a cornerstone of a sustainable and inclusive European housing strategy.
