A photo of a crowded building

Addressing Energy Poverty and Housing Shortages in Europe

MARCH 12, 2025 An interview with Zuzana Matlonova on affordable housing

Europe is facing a dual crisis—an escalating housing shortage and a pressing need to reduce carbon emissions. With over 900,000 people homeless each night and 30 million vacant homes across Europe, the paradox is striking: while many struggle without adequate shelter, millions of properties remain unused. At the same time, residential buildings account for 36% of CO₂ emissions and 40% of energy consumption in the EU. 

Zuzana Matloňová, representing Habitat for Humanity International for Europe and the Middle East, recently addressed these urgent challenges at two key events: the Right to Energy Forum and Reclaiming Vacant Spaces to Create Housing Solutions. These gatherings brought together experts dedicated to reshaping Europe’s housing landscape. These events showcased real solutions—solutions that Habitat for Humanity is already driving forward. 
 

A Path Out of Energy Poverty through Targeted Renovations

At the Right to Energy Forum, organised by Right to Energy Coalition, Zuzana took part in a panel discussion alongside representatives from Justice Ensemble, Housing Europe, and Ecodes, moderated by Lea Segura from Friends of the Earth. Her focus was on How smart, community-driven renovations can lift people out of energy poverty in Central and Eastern Europe (CEE). 

“One of the greatest ironies is that, unlike in Western Europe where renting is more common, most people in CEE own their apartments. However, rather than providing financial security, these homes are often a burden due to high energy costs. Poor insulation, outdated heating systems, and inefficient household appliances leave many families choosing between heating and essentials like food,” she highlights. 

Habitat for Humanity’s EU funded ComAct and ComActivate projects, tackle this crisis with a three-pillar approach: 

1) Technical Solutions – Conducting energy audits and planning cost-effective building upgrades.
2) Financial Support – Identifying the best financial models, from government subsidies to commercial mortgages. 
3) Community Engagement – Encouraging homeowners to work together for large-scale, collective renovations. 

Zuzana also drew connections between these projects and another Habitat initiative: Empty Spaces to Homes, which focuses on transforming vacant buildings into affordable housing. Both projects share the goal of maximizing energy efficiency while respecting planetary boundaries. 
 

A New Approach to Affordable Housing

The second event, Reclaiming Vacant Spaces to Create Housing Solutions, hosted by FEANTSA, explored innovative ways to repurpose empty spaces into homes. Habitat for Humanity presented a bold vision to bridge the gap between overcrowded living conditions and the millions of vacant properties left unutilized. 

During the roundtable discussion, Habitat-promoted Social Rental Agency model emerged as a promising solution. Successfully implemented in Poland in 2021 by Habitat for Humanity, this initiative allows private homeowners to lease properties to social rental agencies, which refurbish them and rent them out at below-market rates to vulnerable groups. This model proved critical during the Ukraine crisis, providing immediate housing for displaced families. 

Taking it a step further, Habitat’s Empty Spaces to Homes project presents a holistic strategy for transforming vacant spaces. It incorporates: 

- Social Impact – Creating stable, affordable housing for those in need. 
- Financial Viability – Leveraging government incentives and sustainable financial models.
- Environmental Responsibility – Demonstrating how repurposing existing buildings can cut CO₂ emissions by up to 85% compared to new construction. 

Given that the construction sector accounts for 35% of Europe’s total greenhouse gas emissions, Empty Spaces to Homes is also developing carbon footprint assessment methodologies to align with EU sustainability targets. 

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The Key to Systemic Change is by the Advocacy

While these projects offer practical, scalable solutions, Zuzana emphasized that real change requires more than just technical and financial interventions. Advocacy and public awareness are crucial. As she put it, “We can do many fantastic things in-house, but if we don’t tell the world about it, it is as if it doesn’t exist.” 

Every person can play a role in this movement—whether by supporting policy changes, spreading awareness, or engaging in local initiatives. The fight against energy poverty and housing shortages is about transforming systems to create sustainable, long-term solutions. 
 

Scaling Solutions for a Global Impact

With pilot projects already underway, Zuzana and her team at Habitat for Humanity aim to expand these initiatives across Europe and beyond. By blending research, financing, environmental sustainability, and community action, ComActivate and Empty Spaces to Homes are leading the way toward a future where housing is easily accessible as well as energy-efficient and sustainable. 

Europe’s housing and energy crisis is complex, but solutions exist. With coordinated action, innovative models, and a commitment to advocacy, we can turn vacant spaces into homes, lower energy costs, and build a future where no one has to choose between warmth and food.