Europe’s housing crisis and climate crisis are colliding. The question is not whether we prioritise affordability or decarbonisation – it’s how we deliver both.

According to the Institute for Human Rights and Business (IHRB), housing unaffordability affects almost 15 million people across Europe, with almost one million facing homelessness.

Yet these stark facts are only the tip of the iceberg.

Access to adequate housing is slipping further out of reach for low-and-middle-income households. And at the same time, there’s a clear mismatch between supply and need as one-third of the EU population lived in under-occupied homes in 2023 (source: Eurostat).

However, this isn’t just a housing issue, it’s an economic and social issue too.

Cities that cannot offer affordable, adequate homes for a broad range of residents will struggle to sustain social cohesion, innovation or economic competitiveness.

Simultaneously, another crisis looms. Climate change.

European Commission research shows that buildings in Europe consume over 40% of all energy and are responsible for around one third of greenhouse gas emissions.

Yet more than three quarters are energy-inefficient, and more than 85% are expected to still be in use by 2050 (source: European Commission; European Environment Agency).

Decarbonising Europe’s ageing housing stock is essential, but far from straightforward. Retrofitting is often complex and costly, especially for affordable housing providers operating on tight margins.

Yet without it, millions will miss out on lower energy bills, healthier homes, and the emissions cuts we urgently need.

This is the paradox. The housing and climate crises are deeply intertwined, yet too often at odds.

Tackling affordability is usually addressed by building more homes, but construction itself is carbon intensive. Meanwhile, decarbonisation efforts often prioritise prime assets, sidelining affordable housing and widening inequalities.

Across Europe, innovation is emerging in pockets, but the business case for delivering affordability and decarbonisation together has not yet been proven at scale.

With Europe already said to be a facing a shortfall of 9.6 million homes, and the UK alone targeting 300,000 new homes a year, building without embedding low-carbon standards risks locking in emissions for decades.

Governments are beginning to respond, from the EU’s Affordable Housing Plan and Renovation Wave, to the UK’s £39 billion commitment for new social and affordable housing, but policy alone will not be enough. Coordinated action across the entire housing ecosystem is essential.

Enter C Change for Housing

C Change for Housing is ULI Europe’s new initiative to confront one of the toughest challenges in the built environment: how to meet Europe’s affordable housing needs within the necessary carbon budgets.

Leveraging ULI’s unique pan-European network, the programme is mobilising the private sector to take action, working alongside the public sector.

The programme’s first phase is focused on mapping the systemic barriers holding back progress, identifying gaps, and highlighting intervention points where targeted action could make the most difference.

Almost 120 experts spanning investment, development, policy, NGOs and academia have already contributed through interviews and workshops, including at the 2025 ULI Europe Conference.

In one session alone, more than 50 housing and sustainability professionals came together to explore barriers from fragmented policy to gaps in finance, share insights across stakeholder groups, and help shape the programme’s research agenda.

Participants at the C Change for Housing workshop which was hosted during June’s ULI Europe Conference in London

Building on ULI’s flagship C Change programme – which for the past five years has helped accelerate decarbonisation across Europe’s real estate industry – C Change for Housing brings the same systems-based approach: surfacing barriers, incubating practical solutions, and working to scale adoption across the sector.

It is designed to be open-source and will align incentives, build shared understanding, and help move the industry from pilots to systemic solutions.

Next steps

This Autumn, C Change for Housing will launch the research findings through an interactive systems mapping tool that reveals the ecosystem of barriers preventing the decarbonisation of affordable housing.

This will highlight where progress is already being made through case studies and initiatives, where systemic intervention is still urgently needed, and the areas that ULI will focus on tackling through the programme.

As we move from mapping to mobilisation at the end of the year, there will be many ways for the industry to get involved. A key moment will be a dedicated interactive workshop at November’s C Change Summit in Paris, where we will share the programme’s foundational findings and begin charting practical routes forward.

Delivering affordable, low-carbon homes at scale will only be possible through shared insight and collaboration, so we look forward to practitioners from across Europe joining us in shaping the solutions.

Register to stay informed on the latest news, launches and opportunities to get involved.

Register for the ULI Europe C Change Summit 2025 (27 November, Paris, France) here.

This is the latest in our series of thought leadership blogs on the key topics and talking points from ULI Europe Conference 2025.

The next ULI Europe Conference will take place in Berlin, 1–3 June 2026. Save the date!