Head of EC’s Housing Task Force among speakers at Bucharest event on affordable housing

The financing and solutions needed to implement an affordable housing model will be on the agenda at the Romania Affordable Housing Summit 2026, an event scheduled to take place next month in Bucharest.

Earlier this month, the European Commission presented a proposal for an Affordable Housing Act and a recommendation to support national, regional and local authorities in addressing housing affordability and availability in areas facing the greatest pressures.

The new state aid rules for services of general economic interest, which entered into force in January 2026, make it easier for member states to support affordable housing projects, including for households that, while not belonging to vulnerable groups, cannot afford housing at market prices. At the same time, the European Investment Bank (EIB) Group is targeting EUR 6 billion in financing for affordable and sustainable housing across the EU in 2026, covering new construction, renovation and innovation.

One of the summit’s keynote speakers, Matthew Baldwin, Head of the European Commission’s Task Force on Housing and Deputy Director-General at DG ENER, will discuss how the new European framework for affordable housing can be translated into solutions for Romania by mobilizing public and private investment and making use of European financing and technical assistance instruments.

In 2024, 40.7% of Romanians lived in overcrowded households, compared with 16.9% across the European Union, according to Eurostat data presented by the organizers. Although around 94% of the population lived in an owner-occupied home, the highest share in the EU, this high rate alone does not capture housing conditions. According to the 2021 Population and Housing Census, around 25% of Romania’s housing stock was unoccupied.

Housing conditions also vary significantly from one region to another. Major urban centers and metropolitan areas face considerable pressure on housing and rental markets, while other localities are dealing with demographic decline, vacant homes and a building stock in need of investment.

According to a European Commission analysis, low incomes and high interest rates limit people’s ability to buy a home, while rental affordability pressures are significant, particularly in urban areas. These challenges are compounded by a major structural vulnerability: seismic risk, to which Romania is more exposed than most EU member states. Strengthening buildings is therefore an urgent public-safety priority, and this investment effort needs to be directly linked to energy-efficiency measures, helping both to protect communities and to reduce the cost of housing.

According to EC estimates, the European Union needs around 650,000 additional homes every year, on top of the approximately 1.6 million homes currently built annually. The investment needed to address this shortfall is estimated at around EUR 150 billion per year.