The European Commissioner for Housing, Dan Jørgensen, has acknowledged that Portugal is “one of the countries most severely affected” by the EU-wide housing crisis ahead of his official visit to Lisbon later this week.
Speaking to Lusa and several European media outlets in Brussels, the Commissioner said the situation in Portugal will be a core focus of his meetings with government ministers, mayors and housing-sector stakeholders.
He confirmed that the European Commission is preparing new measures this year aimed at giving local authorities stronger tools to control the rapid expansion of short-term rental platforms.
Portugal at the Centre of Europe’s Housing Strain
Jørgensen said a significant part of his agenda in Lisbon will revolve around understanding how the EU’s new housing plan can be applied “in a way that helps Portugal in the best possible way.”
He stressed that short-term rentals have become a central pressure point, driving up rents and reducing long-term availability in many cities.
The Commission, he confirmed, is developing a package to support national and local authorities struggling with the impact of tourism-driven property markets.
This will include a formal “white list” of measures that cities may adopt in zones facing extreme housing pressure.
According to Jørgensen, the goal is to provide legal clarity for defining “housing pressure areas” and enable municipalities to apply stricter controls where justified.
He said these measures will be part of a broader effort to ensure more effective access to affordable housing across Europe.
EU Housing Crisis & Portugal
- Portugal at High Risk: EU Housing Commissioner Dan Jørgensen officially labels Portugal as one of the nations “most severely affected” by the current housing crisis.
- Stricter Short-Term Rental Controls: The European Commission is launching new tools in 2026 to help cities define “housing pressure areas” and legally curb the expansion of platforms like Airbnb.
- Massive Investment Needed: Brussels estimates a need for €150 billion in annual investment to build 650,000 new homes across Europe every year for the next decade.
- A €10 Billion Funding Platform: A new pan-European investment platform is being proposed to channel €10 billion annually into affordable housing projects.
- Market Overvaluation: New analysis reveals Portuguese housing prices are currently overvalued by 25%—the highest discrepancy in the European Union.
- Policy Shift: For the first time, the EU is revising State aid rules to make it easier for national governments to fund social and affordable housing directly.
EU Prepares First-Ever Continental Affordable Housing Strategy
Last December, the Commission presented its first EU-wide plan to promote affordable housing, marking a major shift in European policy.
The plan includes large-scale support for new construction, the conversion of vacant buildings and renovation of underused properties.
Simplifying construction rules particularly planning permits and authorisation processesis a key component of the strategy.
Brussels also intends to revise EU State aid rules to allow governments to invest more easily in social and affordable housing.
Funding streams from cohesion funds, the EU’s long-term budget, InvestEU and the European Investment Bank will be strengthened to support the plan.
A new legal framework for short-term rentals will be proposed this year, enabling cities to act more decisively against market distortions caused by speculative property use.
Massive Investment Needed to Close the Gap
One proposed measure would see the creation of a pan-European investment platform designed to channel €10 billion per year into housing initiatives.
EU officials estimate that around 650,000 new homes must be built annually over the next decade to meet demand.
This level of construction would require approximately €150 billion in public and private investment each year.
The Commission warns that without immediate interventions, housing pressures will continue to worsen across member states.
Countries such as Portugal have already experienced dramatic price surges, leaving young people and low-income households increasingly locked out of the market.
Brussels’ latest analysis estimates that Portuguese housing prices are currently overvalued by 25% the highest level in the European Union.
