The European Investment Bank (EIB) is taking steps to address Europe’s housing crisis, which affects millions across the continent.
The lack of affordable and adequate housing is a widespread issue, expected to impact future generations unless decisive action is taken.
To tackle this, the EIB has launched a new pan-European investment platform aimed at supporting affordable and sustainable housing.
The initiative, announced at the EIB conference “Investing in a More Sustainable and Secure Europe”, includes a €10 billion investment over the next two years.
A key part of the plan is the creation of a one-stop-shop online portal, which will provide financial support and advice for construction innovation, affordable housing development, and energy-efficient renovations.
EIB President Nadia Calviño highlighted the scale of the issue, stating that Europe requires an additional one million new homes annually to meet demand, while five million homes need renovation each year to reduce environmental impact.
By 2026, the EIB aims to double its housing-related funding to €6 billion, with total investments reaching €10 billion in 2025 and 2026. Collaboration with key stakeholders, including national banks, the private sector, and the European Commission, will be essential.
The housing crisis has led to significant financial burdens for Europeans. Over the past 15 years, rents have risen by 25% on average, while house prices have surged by 50%. In 2024, 17% of Europeans lived in overcrowded homes, and one in ten spent over 40% of their income on housing.
The crisis is causing young people to delay starting families, students to reject university offers, and workers to turn down jobs due to high accommodation costs, affecting Europe’s productivity and quality of life.
Cyprus seeking EIB funding to tackle its housing crisis
In Cyprus, the government is closely monitoring developments. The Ministry of the Interior plans to engage in discussions with the EIB to explore funding opportunities.
Potential options include subsidised interest rates for housing construction, direct funding for affordable housing projects, and state-led development initiatives through the Cyprus Land Development Corporation.
The government aims to secure a portion of the €10 billion fund to address its own housing challenges.
€10Bn, 1 Million homes needed.
EU wide, that’s €10,000 per home. Not going to go very far imo. €10Bn needs to be more like €50Bn+.
Yet the unelected officials of the EU, have in principle set a side €800Bn for defence.
This €10bln is designed to help EU countries to provide affordable and sustainable housing across Europe. Furthermore, The European Investment Bank (ElB) is the long-term lending institution of the European Union – the €10bln will be a loan, which will have to be repaid.
As for the €800bln. This will be spent by EU countries and the money will have to be borrowed. This would be achieved by loosening the borrowing rules (agreed by all EU member states), thereby enabling them to increase significantly their spending on defence without causing them problems if they went too far into the red.
Last Tuesday, the European Commission proposed to borrow up to €150 billion euros to lend to EU governments under a rearmament plan driven by Russia’s war in Ukraine and fears that Europe can no longer be sure of U.S. protection.
Unfortunately, the EU divorce cost the UK somewhere between £35–£39 billion and it can no longer benefit from EU initiatives as a consequence of Boris’ half-baked Brexit deal.