Europe's housing crunch has escalated into what the EU's first-ever housing commissioner calls an "emergency," with ordinary workers increasingly priced out of the cities they serve. Dan Jørgensen, the Danish politician now holding the newly created portfolio, told Euronews that Brussels is treating the problem with the utmost seriousness.
European Commission data paints a stark picture: property prices across the bloc have jumped by roughly 60% over the past decade, while average rents have climbed more than 20% in the same period. In many capitals and tourist hubs, the gap between incomes and housing costs has become untenable.
"Prices in many cities in Europe are way too high," Jørgensen said in an interview with Euronews' morning programme Europe Today. "We see normal people with normal jobs unable to find a place to live, being crowded out of the cities where they serve as police officers, nurses and teachers and so on. So this is totally unacceptable, and we need to act."
The commissioner acknowledged that the EU has no direct legislative power over housing, a domain traditionally reserved for national and local governments. But he insisted that the bloc can still play a meaningful role. "It's also important from the European Union's side to acknowledge that this is also a European problem. So we need to provide solutions from Brussels," he explained.
New rules target short-term rentals
Jørgensen's remarks came as the European Commission unveiled fresh guidelines under the Affordable Housing Act, designed to give local authorities clearer legal backing to restrict short-term holiday rentals. Platforms like Airbnb have been blamed for removing long-term housing from the market and inflating prices in cities from Lisbon and Barcelona to Brussels and Amsterdam.
While short-term lets account for just 1.2% of the EU's total housing stock, their share can reach up to 20% in some tourism hotspots. "In some cities, these short-term rentals have crowded out normal people from their homes because there is more money to be made from short-term rentals," Jørgensen said.
The Commission noted that some local governments have already tried to rein in operators but faced court challenges questioning whether their measures were compatible with EU law. The new rules aim to provide "clarity and predictability" for authorities in areas under "housing stress" or where there is clear evidence of serious pressure.
"Where that is the case, we are now giving member states the legal basis to regulate this," Jørgensen said. "We are giving them the ability to actually do something about this important problem."
Beyond Airbnb: a social emergency
The commissioner stressed that the crisis goes beyond housing markets, affecting people's ability to build their lives. "It's preventing people from starting a family, getting the job they want and having the education they need," he warned.
Jørgensen pushed back against critics who argue the EU is overstepping its mandate. He emphasised that the decision to act and the choice of measures remain firmly in the hands of national and local authorities. "It's about finding the balance," he said. "I've really felt a pressure to act on short-term rentals, but we shouldn't prescribe. We shouldn't force member states to do specific things."
He also cautioned that tightening rules on short-term lets is not a silver bullet. "We also need to do more to build more houses, to renovate more houses, to find new purposes for buildings that already exist so that they can become houses," he said, adding that cutting red tape and mobilising funds are essential.
The housing crisis has become a defining political issue across the continent, with young people in particular struggling to find affordable accommodation. The Commission's housing plan is part of a broader effort to address what many see as a generational challenge. As Jørgensen put it, the situation is "completely unacceptable" and demands action at every level of government.
