EU adopts Affordable Housing Act framework

The European Commission adopted the Affordable Housing Act on 9 September 2026, creating a legal framework for Member States and cities to address housing pressure. For the first time it sets technical criteria to define areas under housing stress, enabling local authorities to restrict non-primary-residence uses such as short-term rentals and second homes where justified, necessary and proportionate. Decisions remain with national and local authorities. A Recommendation on housing affordability and supply accompanies the Act, covering planning, renovation, repurposing and investment.