Rethinking the Roots of the EU’s Housing Crisis: The Case of Italy

"First and foremost, national governments within the EU should be responsible for taking appropriate measures to solve the housing crisis while fully respecting market competition and the well-being of citizens," says cep expert Eleonora Poli. However, according to the Rome-based economist, there is a clear need for coordination at European level, both between governments and local authorities and between member states.

"In this context, the EU can play a central role by continuing to map the problem in European cities, regions and countries, providing comparable data and linking countries with similar housing problems in order to promote evidence-based policy-making and the exchange of best practices," emphasises Eleonora Poli.

In Italy, the level of social housing is particularly low compared to other European countries, as the majority of Italians already own their own home. "So while minimal government intervention in social housing investment may be welcome, the priority is certainly to help property owners cope with the rising cost of utilities," highlights the cep expert.

Alternatively, state funds could be used to renovate unused public buildings, which could then be used as living space for citizens, students or start-up companies.

When it comes to short-term rentals, Poli says it could be beneficial for governments to work with mayors of large cities to get an idea of what measures could be taken to control, if not reduce, the number of short-term rentals that contribute to, among other things, a lack of affordable housing for citizens.