Housing in the European Semester

Coordinated action on housing at EU level

The European Semester is the EU’s annual policy framework and key to aligning national and regional reforms and investments with EU priorities. As part of this, to improve housing affordability, the Commission proposes structural reforms that Member States need to implement across various policy areas.

The European Affordable Housing Plan (EAHP) published in December 2025 sets out under Action 8 how Member States can drive forward long-term structural reforms to enhance housing affordability in a variety of areas under their control such as action on developing social housing, taxation and administrative procedures.

The Commission is supporting these efforts through targeted recommendations and strategic guidance under the European Semester to help Member States design effective reforms to improve affordability and social housing.

2026 is the first time where housing is analysed extensively in each country report. This year’s spring package puts overall focus on housing construction and supply, streamlining administrative procedures and tackling capacity constraints in residential construction.

Country Reports

Each of the 27 country reports now include a dedicated housing annex that cover several topics.

Market developments
Including changes in prices and rents, mortgages, construction rates
Structural policies
Touching on topics such as governance, land use, taxes, permitting, housing allowances.
Vulnerable groups
Such as homelessness.

Country Specific Recommendations

Many Member States have received Country Specific Recommendations (CSRs) related to housing. The CSRs identify critical housing policy gaps and aim to help Member States design effective reforms for affordable and social housing, while taking into account the specific context of each country.

Country Specific Recommendations range from increasing the stock of social and affordable housing and overall housing supply, simplifying and accelerating permitting to streamlining land use and planning procedures.

Constructive dialogue with the Council and European Parliament on the contents of this Spring Package will follow throughout June. In July, the Council then adopts the final CSRs and Member States are invited to implement them.

Driving reform and the next EU budget

The European Semester will continue to play a crucial role in identifying national needs, ensuring future EU investments deliver maximum impact.

The Recovery and Resilience Facility (RRF) as the cornerstone of NextGenerationEU has funded several structural housing reforms.

The 2026 European Semester Spring Semester Package will inform the negotiations for the EU’s next long-term budget, known as the Multiannual Financial Framework (MFF 2028–2034).

At least EUR 43 billion has been allocated under the 2021-2027 Multiannual Financial Framework to support affordable and sustainable housing efforts, with an additional EUR 3.3 billion in cohesion policy resources re-programmed towards this objective in the context of the mid-term review.