Economics and Finance
Policies
The persistently low level of public investment in housing development, especially in affordable housing, remains a significant issue for people, neighbourhoods, and the economy. According to the OECD, public investment in housing development has halved since 2001, while spending on housing allowances has seen only a slight increase. In many European countries, government expenditure on housing development remains below the levels seen in 2009.
Another critical aspect of the current economic context is inflation; particularly the sharp rise in construction and renovation costs. These increases began in 2021 due to supply chain disruptions caused by the COVID-19 pandemic and were exacerbated by Russia’s war of aggression in Ukraine, peaking at the end of 2022. This combination of declining financial support from the public sector and escalating delivery costs presents a significant challenge for public, cooperative, and social housing providers.
What do we do/want?
Given the uncertain geopolitical context, the housing sector requires adequate funding and policies tailored to local realities. Public, cooperative, and social housing providers must address economic, social, and environmental challenges simultaneously. They will depend on the renewed commitment of the Member States and the EU to invest in social infrastructure and housing. In return, these providers will continue to support the EU’s broader objectives.
A notable example of this support is the Alliance between the Social Union for Housing (USH), the Banque des Territoires (Caisse des Dépôts), the European Investment Bank, and the Council of Europe Development Bank. This collaboration enables social housing organisations in France to access European funding for long-term investments in affordable homes.
Rent that goes back into the community, by BBC StoryWorks
Finding suitable and affordable housing quickly is not always easy. Here’s how Denmark’s Social Housing Federation, BL, is helping their residents to reinvest in their futures by making renting an accessible and sustainable option
The European Responsible Housing Finance Working Group
In June 2023, Housing Europe launched its European Responsible Housing Finance Working Group in Paris to develop capacity across Europe to create healthy housing ecosystems that are able to provide sustainable, longterm solutions. The European Housing Finance Working Group provides a space
to exchange on innovative financing schemes and develop Capacity to mobilise finance in the sector.
Read more by downloading the European Responsible Housing Finance Working Group brochure.
Funding opportunities for Economics and Finance
Council of Europe Development Bank (CEB) Loans
The core mission of the Council of Europe Development Bank (CEB) is to advance social cohesion throughout Europe. Notably, the CEB serves as an essential implementing partner for InvestEU, with a guarantee agreement valued at up to €159 million.
EFSD – European Fund for Sustainable Development
The European Fund for Sustainable Development (EFSD) is part of the External Investment Plan (EIP) which has been established in 2016.
European Investment Bank
The EIB Group comprises the European Investment Bank (EIB) and the European Investment Fund (EIF). While the EIB extends long-term financing to support EU policies, notably the Cohesion policy, the EIF specializes in providing risk finance to benefit small and medium-sized enterprises (SMEs) across Europe. It is noteworthy that the EIF’s primary shareholder is the EIB.
ELENA – European Local ENergy Assistance Fund by the EIB
The ELENA programme (European Local Energy Assistance) is a tool by the EIB that offers substantial technical assistance, covering up to 90% of project development costs. It’s designed specifically for projects aimed at enhancing energy efficiency in both residential and non-residential buildings. This grant can support various aspects, including technical studies, energy audits, business planning, financial and legal advice, tendering processes, project bundling, and project management. It serves regional, local, and municipal authorities, as well as public corporations.
InvestEU
Single EU investment support mechanism
The InvestEU Programme includes the InvestEU Fund, the InvestEU Advisory Hub, and the InvestEU Portal.
Recovery and Resilience Facility (RRF)
The plan for European recovery, NextGenerationEU (NGEU), is a temporary instrument of €750 billion with the aim of addressing the consequences of COVID-19, and setting the Union on the path to a sustainable and resilient recovery. It takes the form of grants and loans to Member States through the Recovery and Resilience Facility and six other EU spending programmes for the 2021-2027 period.
Remember to check the funding opportunities in the other 3 policy sections.
News and articles
Implementation of the Recovery and Resilience facility: Challenges and success factors of public, cooperative, and social housing providers.
Summary of the April 2025 Prague Local Workshop of the European Responsible Housing Finance Working Group
Strengthening Social and Public Housing through Sustainable Plus Energy Neighbourhoods
Public, cooperative, and social housing is the key to solving Europe’s housing crisis. Our meeting with EU Housing Commissioner Jørgensen
Celebrating Innovation & Inclusion: Finalists Announced for the 2025 European Responsible Housing Awards