Property prices have risen by over 60% since 2015, and rents continue to increase in major cities. In response, lawmakers support a new affordability plan that includes building more homes, providing family subsidies or tax incentives, and regulating rent prices to address what many consider a broken market.<\/p>\n
For residents of Portugal, including many foreign nationals, these challenges are tangible. They are experienced each time someone searches for an apartment, renews a lease, or attempts to purchase property.<\/p>\n
Income and housing cost gap<\/p>\n
Across the EU, the gap between income and housing costs has widened over the past decade. In many cities, purchasing a home now requires the equivalent of eight to ten years\u2019 salary, and even more in the least affordable capitals.<\/p>\n
The causes are complex. Urban expansion and population growth have increased demand, while smaller households require more housing overall. <\/p>\n
However, supply has not kept pace. Addressing these challenges is essential to ensure that accessible housing remains a right, supporting quality of life, economic stability, and social cohesion.<\/p>\n
Building new homes<\/p>\n
Building new homes is now slower and more costly. Land and construction material prices have increased, and permitting processes can take years. <\/p>\n
Additionally, prolonged low interest rates before 2022 contributed to rising real estate prices.<\/p>\n
As financing costs rose, mortgages became less affordable, pushing more people into the rental market and further increasing rents.<\/p>\n
The European Parliament has adopted its first major report focused entirely on the housing crisis, calling for a more coordinated response among Member States.<\/p>\n
Control the housing markets<\/p>\n
The EU cannot directly control housing markets\u2014those decisions still rest with national governments\u2014but it can influence how the situation evolves.<\/p>\n
The plan aims to increase housing supply, accelerate construction, and attract more investment. It also emphasises reducing bureaucracy, which is often cited as a cause of development delays.<\/p>\n
The EU also plans to provide additional financial support to the sector: billions of euros have been allocated to housing projects from 2021 to 2027, with further funding anticipated.<\/p>\n
Support social housing<\/p>\n
Some of this funding will support social housing and renovation projects. Another portion will focus on energy efficiency, helping families lower their bills and improve their living conditions.<\/p>\n
There is also an effort underway to modernise construction through faster building techniques and digital tools to expedite home delivery. <\/p>\n
National rules<\/p>\n
A challenge for the EU is that housing policy remains largely a national matter. Each country sets its own rules on rents, planning, taxation, and housing models.<\/p>\n
As a result, the European plan can provide guidance and support, but cannot enforce measures.<\/p>\n
Local authorities are expected to play a key role, especially in streamlining permit processes. Local authorities are expected to play a key role, particularly in streamlining permit processes and identifying priority areas for new housing. It shapes labour markets, mobility, and economic growth.<\/p>\n
The EU is preparing further actions, including a housing summit and a broader alliance of governments, cities, and industry representatives.<\/p>\n
For many, finding a home is no longer a routine stage of life but has become one of their greatest challenges.<\/p>\n","protected":false},"excerpt":{"rendered":"Property prices have risen by over 60% since 2015, and rents continue to increase in major cities. In…\n","protected":false},"author":2,"featured_media":567849,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":["post-567848","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/567848","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=567848"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/567848\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/567849"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=567848"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=567848"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=567848"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}