08 Apr 2026

How to integrate social and climate objectives into the EU’s housing policy

Angela Köppl / Stefan Schleicher / Christian Egenhofer

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We spend the largest part of our lives either inside buildings or travelling between them. How and where we build is not only fundamental for household spendings but also for society’s social fabric. Housing policy also has significant implications for energy demand, material requirements, greenhouse gas (GHG) emissions and mobility needs as well as safety, security and – more generally – resilience.

In the EU, buildings are responsible for about 40 % of net energy consumption. In the EU, housing expenses are the largest expense, amounting to almost one quarter of total spending on average. Making housing more affordable and sustainable means we need a new and more comprehensive perspective on housing, one which would unlock the efficiency and innovation potential of the climate and digital transitions.

Three aspects stand out. First, the time dimension, which addresses the whole life-cycle of buildings. Second, the value chain dimension, which includes the impacts from primary construction materials to the design and use (or reuse) of buildings, as well as recycling. Third, the spatial dimension, which covers the consequences of where buildings are located, including for mobility and energy systems. Buildings’ higher costs can be offset by longevity, which in return can be supported by more flexible and modular designs. Eco-services such as storing GHG emissions in building materials can also create new revenue streams.