For nearly two decades now, residential construction in the EU has fallen short of demand. After a period of strong growth in the 1990s and early 2000s, the 2008 financial crisis triggered a collapse in housing investment, and the sector never fully recovered. The pandemic only widened this gap, halting permits, delaying materials and worsening labor shortages that further stalled construction.
Second, and just as urgent, is that we must ensure both new construction and existing housing stock serve their true purpose: upholding the fundamental right to decent and affordable housing. Because as we continue to fall short of guaranteeing this basic right, homes are increasingly being diverted to fuel speculation or serve secondary uses like tourist rentals.
In fact, according to preliminary European Parliament data, there were around 4 million short-term rental listings on digital platforms across the EU in 2025. In my home country, cities like Madrid and València have witnessed the displacement of residents from their historic centers, which are transforming into theme parks for tourists.
For nearly two decades now, residential construction in the EU has fallen short of demand. | David Zorrakino/Getty Images
At the same time, housing is increasingly being treated as a financial asset instead of a social good. In Ireland, investment funds have acquired nearly half of all newly built homes since 2017, while in Sweden, institutional investors now control 24 percent of all private rental apartments.
Just as no one would dare justify doubling the price of a bowl of rice for a starving child, we cannot accept turning the roofs meant to shelter people into a vehicle for speculation — and citizens overwhelmingly share in this view. Seventy-one percent of Europeans believe that the places they live would benefit from more controls on property speculation, like taxing vacant rentals or regulating short-term rentals.
This is what the EU stands for: When it’s a choice between profit and people, we choose people.