Quality, affordable housing is a key step to improve the social inclusiveness and a fairer access to opportunities in Europe. Evidence shows that the availability of affordable housing has deteriorated over recent years, especially in cities, also driven by urban migration. As the OECD Regional Outlook suggests, This is only expected to continue in the 21st century, and, as a result, affordable housing might come at risk of being even scarcer.
Cohesion policy funds currently support housing in two areas: namely energy efficiency of housing stock and housing infrastructure for vulnerable groups.
This story describes how cohesion policy programmes 2021-2027 will deliver a total support of EUR 10.4 billion, of which EUR 7.5 billion is the EU budget contribution. Use this data story to explore the EU support to housing in detail through maps, graphs, and concrete project examples.

Cohesion policy support to housing

Cohesion policy's focus in 2021-2027 includes improving energy efficiency, addressing homelessness, and ensuring access to housing for vulnerable populations. The Commission encourages the development of inclusive, low-carbon communities and the integration of housing within sustainable urban development. In line with this, EU investments aim to contribute to a more equitable and environmentally conscious housing landscape in the European Union. The EU budget support to housing for the 2021-2027 period amounts to EUR 7.5 billion over the period. Together with the national allocations, the total support to housing is EUR 10.4 billion.
The EU manages its support to housing through four funds. The EU funds providing support to housing are: European Regional Development Fund (ERDF), Cohesion Fund (CF), Just Transition Fund (JTF), and Interreg Funds. Out of the total EU support of EUR 7.5 billion, the ERDF accounts for the majority of this amount with EUR 5.2 billion and 69%. The Cohesion Fund also plays a significant role with EUR 2 billion and 27%.
The EU support of EUR 7.5 billion to housing makes up 2% of the total cohesion policy EU allocation of EUR 379 billion.
Support by intervention field
The two groups of intervention fields of EU support to housing are:
  • Energy efficiency and Energy efficiency - deep renovation,
  • Housing infrastructure, and Housing infrastructure for migrants.
The two energy efficiency intervention fields combined account for 86% of the EU support with EUR 6.5 billion. "Energy efficiency in housing - deep renovation" itself makes up more than half of the whole amount allocated to housing with EUR 4.2 billion and 56%.
"Housing infrastructure" and "Housing infrastructure for migrants" make up 14% of the EU support.
Allocation by fund and intervention field
As shown in the following chart, the ERDF is the only fund that invests in both energy efficiency in housing and housing infrastructure per se (including for migrants).
The Cohesion Fund and the Just Transition Fund focus their investments on energy efficiency in housing. 
Member States' allocations to intervention fields
The graph below shows the Member States' relative allocations to individual housing intervention fields.
The EUR allocations vary largely across Member States.
The situation across Member States varies. Some Member States allocate their support to one intervention field, whereas all four intervention fields are represented only in Italy and Poland's cohesion policy plans.
There are only two Member States, namely Italy and Czechia, where housing infrastructure makes up a majority of the support.
Eleven other Member States allocate the smaller share of such investments to housing infrastructure.
The remaining thirteen Member States and Interreg allocate all of their cohesion policy support to housing to energy efficiency measures. (NB Austria and Denmark rely on national and regional funding for housing priorities and did not foresee any cohesion policy funding as of December 2024.)


Change in housing allocations 

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Intensity of National allocations to housing

The graph below gives an overview of each Member State's allocation to housing. The graph shows both the EU amount and the total amount that also includes each Member State's national co-financing. Poland is in the lead by a large margin with its national allocation of EU funds to housing of EUR 2.5 billion, making Poland's allocation larger than of the next five Member States combined. (Allocations in programmes targeting the Outermost Regions in FR, ES and PT are included in the national totals.)  

Overall allocation to housing per 100k inhabitants
When the EU amounts are converted to per capita data, the situation looks different. Estonia has the highest allocation with EUR 28 million per 100 000 inhabitants. Poland is still one of the top beneficiaries with EUR 6.9 million per 100 000 inhabitants, but four other Member States are ahead of Poland. Estonia and Lithuania particularly stand out with an allocation significantly exceeding the rest of the Member States. 
Thematic housing allocations per 100k inhabitants
The following maps show the allocation to housing related intervention fields per 100 000 inhabitants, where the map on the left-hand side combines the two energy efficiency intervention fields. The map on the right-hand side combines the two housing infrastructure intervention fields. As the maps show, most Member States have a certain allocation in energy efficiency, but only around 50% of Member States have an allocation of EU support in housing infrastructure. Lithuania and Latvia are among the top recipients of EU support to housing in both categories. There are large differences between the top recipients and the rest where, as an example, Estonia's cohesion policy allocation to Energy efficiency per 100 000 inhabitants is over 100 times higher than that of Italy.
Common output indicators
The 2021-2027 programming period uses two common output indicators that are linked to housing. The graph on the left-hand side shows the target values for common output indicator 18 (RCO18), where over 725 000 dwellings should have their energy performance improved. The graph on the right-hand side shows social housing units (RCO65) with a capacity of almost 60 000 persons should be newly built or renovated.
The New European Bauhaus (NEB) promotes sustainable, inclusive, and aesthetically pleasing housing solutions. It engages citizens in project development to empower communities and foster a sense of belonging. Cohesion policy integrates NEB principles in social housing and housing support projects in various European countries. Examples of projects include affordable housing for young people, district renovation, and social inclusion in neglected complexes. DG REGIO's NEB toolbox assists local authorities in integrating NEB values and principles for affordable housing solutions. The NEB Prizes recognize exemplary housing projects across Europe.

Examples of supported projects

How could investments in 2021-2027 be translated into concrete projects? Some ideas from the 2014-2020 funding period show what is possible:
Financial instruments supporting energy efficiency, LT   
Over the last two decades, Lithuania accomplished a major transformation in the financing of energy efficiency measures in multi-apartment residential buildings. Thanks to ERDF-powered financial instruments, the country transitioned from a grant-only approach to a more strategic combination of low-cost loans and grants.
This shift enables the country to address multiple national priorities, including energy poverty. These investments helped to improve the living conditions of over 83 000 households, collectively reducing 180 000 tons of CO2 equivalents per year.
Total Investment: EUR 1 252 million
EU Contribution: EUR 314 million from the ERDF
More details in FI compass Lithuania, case study
Desegregation and relocation of marginalised families in Madrid county, ES
The ERDF supported the Social Housing Agency of Madrid in 2014-2020 with resettlement and support programmes for families, including Roma. The ERDF support enabled the purchase of 422 new social housing units territorially dispersed in mainstream areas. The agency made these houses available for rent to relocate marginalized families living in segregated areas into the mainstream community. To provide comprehensive support, social workers from the Social Housing Agency helped the families and their children before, during and after their move, including with access to mainstream education, employment and social services. The programme has helped numerous disadvantaged families improve their housing situation and social inclusion.
Total investment: EUR 63.8 million 
EU contribution: EUR 31.9 from the ERDF
Sustainable and affordable housing to support green growth, SE
The Sustainable and Affordable Housing for the New Green Industry and Society (SHERIS) project will support the construction of 7 housing complexes in Northern Sweden. The PSLF support will facilitate the social transformation and urban development of Skellefteå needed to adapt to the emergence of a new green industry by supporting the construction of 7 housing complexes with around 750 energy-efficient social housing units.
As the region of Västerbotten is shifting from mining and energy intensive industries to green economy, the municipality of Skellefteå finds itself at the forefront of the region’s green transition. 
Around half of the affordable housing programme will target students of the expanding Skellefteå university campus to support the supply of new skills in the ongoing social and economic transformation. In addition, around 20% of the new housing will be made available for social lease contracts which will offer accommodation for people with low income or special needs and refugees to promote the development of inclusive communities.
Total Investment: EUR 142 million
EU Contribution: EUR 11 million from the PSLF
Housing energy efficiency renovation scheme, EE
In 2011, households accounted for 42.7% of final energy consumption in Estonia. Approximately 70% of the country's apartment buildings were constructed between 1960 and 1990, with little consideration for energy efficiency. To address this situation Estonia launched annual calls to support energy renovation. In Estonia's larger urban areas, housing associations opted for deep renovation. The investments targeted significant reductions in energy consumption and improving living conditions by enhancing the indoor climate and the overall quality of housing.
The efforts have yielded positive results: almost 20 000 dwellings have improved their energy efficiency performance.
Period: 2014-2020
Total Investment: EUR 380 million
EU Contribution: EUR 150 million (Cohesion Fund).

Additional information

More resources on housing:
For more information on Cohesion Policy supported projects, see:
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Authors: Jan DOSTÁL - Otilia CIOBANU
Date of Text: January 2025