Housing prices in Europe have increased by 24% and rents in major cities by more than 45%, while many households now spend close to 25% of their disposable income on housing, rising to 40% in some cases. At the same time, a significant share of residents continue to face high living costs driven by inefficient buildings.

The European building stock accounts for 40% of total EU energy consumption. Poor insulation remains a central factor behind excessive energy use, whereas improving attic and roof insulation can save up to 14% of residential heating energy and reduce natural gas consumption for heating by 44%, contributing to lower household expenditure.

Energy-efficient renovations have the potential to cut peak heating demand by almost 50% by 2050. This could lower total energy system costs by EUR 312 billion per year and reduce annual distribution grid investment needs by EUR 44.2 billion, while supporting an expected 60% increase in electricity demand by 2030.

The social impact is also significant, with 47 million Europeans reported to have chosen between eating and heating last winter. Calculations by the European Commission indicate that every euro invested in energy efficiency improvements delivers an average return of EUR 12 in savings for households, helping to reduce energy poverty and improve living conditions.

For these reasons, improving the energy performance of buildings is central to making housing more affordable across the EU by lowering energy demand, reducing costs for residents, and supporting long-term sustainability.