Brussels – Whether we are talking about rents or house prices, it makes little difference. The reality is this: Europe must tackle the housing crisis and work towards solutions. This is a commitment on which the European Economic and Social Committee (EESC) has based an opinion entitled “Making Housing Affordable – Increasing Modern Methods of Construction and Lowering Costs”, presented during the September plenary session. Drafted by EESC members, John Comer and Thomas Kattnig, the text emphasises that certain modern construction methods can help reduce housing costs and increase supply. “Modern construction methods can become a key pillar of affordable housing, but only if innovation, quality, workers’ rights and public interest objectives advance together,” explained Comer. In addition to production costs and lead times, according to the EESC, innovative solutions can also reduce the carbon footprint, thereby supporting the circular economy within the construction sector.
The opinion was requested by the Irish Presidency of the Council of the EU and, specifically, addresses “the framework conditions necessary to increase the supply of refurbished, renovated, and new housing, and provides guidance to the relevant stakeholders on the implementation of modern construction methods.” Katting emphasised that these methods “must
not be seen as merely a technological or market-driven issue but must be part
of a broader social, labour market, affordability and industrial policy
strategy.”
Adopting new methods means drawing on “innovative off-site production and on-site techniques designed to construct higher-quality structures more quickly and efficiently than traditional construction approaches”. Examples include the rise of industrialised approaches such as modular construction – a construction method in which buildings are produced (in part or almost entirely) as prefabricated modules within an industrial plant, before being transported to the building site and assembled on site – prefabricated and off-site construction. The EESC also highlights that “as they are more environmentally friendly, they also contribute to the achievement of the United Nations Sustainable Development Goals (SDGs).”
To achieve these objectives, however, a well-developed industrial capacity is required. For this reason, the EESC argues that the EU must pursue “targeted investments to increase industrial capacity for the production of prefabrication and off-site construction systems.” This means that Member States, the Commission, the Housing Alliance – a collaborative platform launched in May 2026 by the European Commission to tackle the affordable housing crisis across the Union – and all stakeholders have a role to play in promoting standardisation, eliminating fragmented regulations and ensuring that systems for modern construction methods are certified and monitored. Although housing falls within the remit of the Member States, the Committee believes it is up to the Commission to contribute to national housing plans and promote cross-border cooperation. The final recommendation calls for the construction industry to be allowed to make progress in innovation. The EESC’s call is clear: the EU must launch a central funding mechanism to encourage and enable SMEs to invest in digitalisation, which should not be limited to construction projects but should also be used to safeguard workers’ rights, quality jobs, working conditions, and consumer interests.
The EU’s housing crisis did not arise out of the blue. House prices across the EU have risen by over 60.5 per cent since 2013, while rents have increased by 28.8 per cent between 2010 and 2025. At the same time, mortgage interest rates have doubled, while the number of planning permissions granted between 2021 and 2024 has fallen by 25 per cent. The EESC has been pressing the EU institutions to find a solution to the housing crisis, adopting several opinions in recent months. For example, in September 2025, it adopted the opinion ‘Towards a European affordable housing plan – the contribution of civil society“, urging the Commission to develop an action plan to ensure the right to housing is upheld. It is currently assessing the so-called Housing Plan, presented by the Commission on 9 September 2026, on which it will issue a further opinion in December 2026.
English version by the Translation Service of Withub
