Quality or quantity? Affordability needs to be core mission of EU housing plan – EUobserver

Report on the European Housing Crisis and the European Affordable Housing Plan

Introduction: A Crisis Impeding Sustainable Development

A severe housing crisis across the European Union is undermining progress towards several Sustainable Development Goals (SDGs). Since 2015, a 53 percent average increase in house prices has exacerbated social inequalities and energy poverty, directly challenging the principles of SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities). Currently, nearly 10 percent of urban households expend over 40 percent of their disposable income on housing, compromising their ability to afford other essential goods and services. The European Commission’s forthcoming European Affordable Housing Plan (EAHP) presents a critical opportunity to address this crisis through a framework aligned with the 2030 Agenda for Sustainable Development.

Analysis of the Housing Crisis Through the SDG Lens

Socio-Economic Impacts and Inequality

The current housing market dynamics directly conflict with core SDG targets. The financial strain on households is a significant barrier to poverty eradication and inequality reduction.

• SDG 1 (No Poverty): High housing costs are a primary driver of financial hardship, pushing households towards poverty and preventing them from meeting basic needs.
• SDG 10 (Reduced Inequalities): The crisis disproportionately affects low-income and vulnerable groups, widening the gap between different socio-economic strata within communities.

Energy, Health, and Climate Interlinkages

The EU’s inefficient housing stock creates a nexus of challenges impacting health, energy security, and climate action.

• SDG 7 (Affordable and Clean Energy): Poorly insulated buildings lead to high energy consumption, contributing to energy poverty and undermining the goal of ensuring access to affordable and clean energy for all.
• SDG 3 (Good Health and Well-being): Inefficient homes that are cold in winter and overheated in summer create unhealthy living environments, negatively impacting residents’ physical and mental well-being.
• SDG 13 (Climate Action): The high energy consumption of the building sector is a significant source of greenhouse gas emissions, making housing a critical area for climate change mitigation efforts.

The European Affordable Housing Plan: A Framework for Sustainable Solutions

An Integrated Strategy for Sustainable Cities and Communities

The EAHP offers a pivotal opportunity to create an integrated policy approach that aligns housing with energy and social objectives, directly supporting the achievement of SDG 11 (Sustainable Cities and Communities). By breaking down policy silos, the plan can foster the development of affordable, energy-efficient, and climate-resilient homes. To be effective, the EAHP must be harmonized with existing EU initiatives, including:

1. The Citizen Energy Package
2. The Electrification Action Plan
3. The Heating and Cooling Strategy
4. The EU Anti-Poverty Strategy

Leveraging Existing Legislation for Targeted Impact

Existing EU directives provide a strong foundation for the EAHP’s objectives. Maximizing their impact requires strict implementation and targeted financing to ensure a just transition.

• Energy Efficiency Directive (EED): Mandates renovations of public buildings with provisions to benefit energy-poor households, advancing SDG 7 and SDG 10.
• EU Performance Buildings Directive (EPBD): Focuses on renovating the worst-performing buildings and includes social safeguards against displacement, contributing to SDG 11 and SDG 13.

Strategic Recommendations for Implementation

Repurposing and Revitalising Urban Spaces

A core strategy for achieving SDG 11 should be to prioritise the renovation and repurposing of existing structures over new construction. With an estimated 47.5 million vacant homes across the EU, a focus on revitalisation can:

1. Reduce land use and protect biodiversity.
2. Lower construction costs and material consumption.
3. Decrease greenhouse gas emissions associated with new builds.
4. Align housing supply with actual need rather than speculative demand.

Promoting Decent Work and Economic Growth

The transition to a sustainable housing sector must be underpinned by principles of SDG 8 (Decent Work and Economic Growth). Expanding and upskilling the renovation and construction workforce is essential and requires a commitment to:

• Providing sufficient jobs with fair wages.
• Ensuring decent and safe working conditions.
• Implementing inclusive recruitment practices to address gender imbalances and attract young workers.
• Protecting workers’ rights, including the right to unionise.

Conclusion

The European Affordable Housing Plan is more than a response to a housing shortage; it is a critical vehicle for advancing the Sustainable Development Goals. By integrating social, economic, and environmental objectives, the EAHP can catalyse the systemic change needed to provide decent, affordable, and healthy housing for all EU citizens while simultaneously advancing climate action and promoting inclusive economic growth.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 1: No Poverty
   • The article connects the housing crisis to poverty by highlighting how high housing costs, including energy bills, put a “financial strain on households who struggle to afford other necessities such as groceries, education, clothing and transport.” It also mentions the EU’s “Anti-Poverty Strategy” and provisions for “energy poor, low-income households.”
2. SDG 7: Affordable and Clean Energy
   • This goal is central to the article, which discusses the intertwining of the housing crisis with “ever increasing energy poverty rates.” It emphasizes the need for “energy efficient” homes to reduce the EU’s “energy consumption” and alleviate the financial strain from “soaring energy costs.”
3. SDG 8: Decent Work and Economic Growth
   • The article addresses this SDG by proposing solutions that involve expanding and upskilling the renovation and construction sectors. It calls for the creation of “direct jobs, fair wages, inclusive recruitment, and decent and safe working conditions,” as well as measures to “address gender imbalances” and “attract young people into the sector.”
4. SDG 10: Reduced Inequalities
   • The housing crisis is presented as a driver of inequality, “further exacerbating social inequalities.” The article mentions that legislative solutions like the Energy Efficiency Directive (EED) have “explicit provisions to benefit energy poor, low-income households and vulnerable groups,” directly aiming to reduce these disparities.
5. SDG 11: Sustainable Cities and Communities
   • This is the most prominent SDG in the article. The core issue is the “lack of affordable and accessible housing” in European cities. The text discusses solutions like increasing housing supply, repurposing “vacant properties,” and creating “decent, affordable… and healthy housing.”
6. SDG 13: Climate Action
   • The article explicitly states that the “climate and housing crisis are intrinsically interlinked.” It points out that inefficient buildings “make a significant contribution to climate change” and that providing “energy efficient, climate resilient homes” can drastically reduce “greenhouse gas emissions.”

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services…
   • The article’s focus on the struggle of low-income households to afford housing and other necessities directly relates to ensuring access to basic services and alleviating financial strain on the poor and vulnerable.
2. Target 7.3: By 2030, double the global rate of improvement in energy efficiency.
   • The article strongly advocates for improving energy efficiency in the housing sector. It calls for “energy efficient, climate resilient homes” and references the Energy Efficiency Directive (EED) and the EU Performance Buildings Directive (EPBD), which focus on renovating buildings to reduce energy consumption.
3. Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men…
   • The need to “expand and upskill renovation and construction sectors” is linked to creating “direct jobs, fair wages, inclusive recruitment, and decent and safe working conditions,” which aligns perfectly with this target.
4. Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all…
   • By addressing how the housing crisis exacerbates social inequalities and calling for social safeguards and provisions for “vulnerable groups,” the article supports the goal of promoting social and economic inclusion.
5. Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services…
   • This target is the central theme of the article. The entire text revolves around the “lack of affordable and accessible housing” and the European Commission’s plan to achieve “decent, affordable, energy-efficient, and healthy housing across the EU.”
6. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • The article calls for the European Affordable Housing Plan (EAHP) to be a “pivotal opportunity” to address interconnected challenges, including climate change. It argues that making the housing stock energy-efficient will “drastically reduce the EU’s… greenhouse gas emissions,” thus integrating climate action into housing policy.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Proportion of income spent on housing:
   • The article states, “almost 10 percent of households within cities are spending 40 percent or over of their disposable income on housing costs.” This is a direct indicator for measuring housing affordability and progress towards Target 11.1.
2. Housing price index:
   • The statistic that “house prices in the EU have risen by 53 percent” since 2015 serves as a key indicator of the growing affordability crisis. Tracking this index would measure the effectiveness of policies aimed at stabilizing the housing market.
3. Energy poverty rates:
   • The article mentions the “ever increasing energy poverty rates” as a major problem. Monitoring this rate would be a crucial indicator for assessing progress on SDG 7 and the social impact of energy efficiency measures.
4. Number of vacant properties:
   • The figure of “47.5 million empty homes across the EU” is an indicator of inefficient housing stock management. Tracking the number of repurposed vacant properties would measure progress towards sustainable urban development under SDG 11.
5. Energy consumption and GHG emissions from the building sector:
   • The article implies that a key measure of success would be a reduction in the EU’s “energy consumption and greenhouse gas emissions” from the housing stock. This is a direct indicator for Targets 7.3 and 13.2.
6. Employment in the construction/renovation sector:
   • The call for “direct jobs, fair wages, inclusive recruitment” implies that indicators such as job creation figures, wage levels, gender balance statistics, and the number of young people entering the sector would be used to measure progress towards Target 8.5.

SDGs, Targets, and Indicators Summary

Source: euobserver.com