Many Europeans face a double whammy: rising housing costs and high energy bills. This is no small problem. In 2023, 10.6 billion urban households spent more than 40 billion of their income just to keep a roof over their heads. At the same time, more More than 41 million Europeans live in energy poverty, meaning they cannot afford to heat or cool their homes adequately. Add to this the fact that buildings are responsible for around 40 % of the EU's total energy consumption and 36 % of greenhouse gas emissions, and the picture of the crisis is complete.

These two threats – housing affordability and climate inefficiency – are not separate problems. They are two sides of the same coin. Addressing the housing climate crisis and addressing the affordability crisis are inextricably linked and require a joint, systemic approach.

It is in this context that initiatives such as the EU-funded REN+HOMES project are emerging, which aims to develop a universal methodology for positive energy buildings and neighbourhoods (PEB). Its ambition is to transform housing not only into part of the climate solution, but also into a basis for social inclusion and dignity. The findings from this project reveal some surprising and fundamental rules for the future of housing.

A green transition could actually reduce housing inequality worsen

It’s a counterintuitive idea, but green building initiatives, if not managed properly, can exacerbate social disparities. A phenomenon known as „green gentrification“ occurs when renovated and energy-efficient homes become too expensive for the original residents, who are forced to move out. As Marco Peverini, an urban policy expert at the Politecnico di Milano, explains, housing inequality is now systemic: „We are witnessing systemic insecurity – short-term rentals, low quality housing, high prices.“

„"Unless the green transition is guided by a public vision for addressing housing inequalities, our evidence suggests it could further exacerbate these disparities."“

This finding fundamentally challenges the prevailing techno-optimistic narrative and exposes the profound risk of politically driven inequality. It forces us to move away from purely technological solutions to ones that prioritize social justice and inclusion from the outset. Innovation must serve everyone, not just those who can afford it.

If social justice is the first step, speed and efficiency must be the second. And here comes another surprise that changes the rules of the game.

The future of construction is not on the construction site, but in the factory

Forget the slow and unpredictable construction process. The future belongs to industrialized construction, as demonstrated by a pilot project in La Garriga, Spain. The key figure is staggering: the 1,500 m² building was built in just 26 days, achieving the stringent Passivhaus certification, a global standard for energy efficiency.

As Meritxell Barroso, Director of Eco-Innovation at Evowall, explains, the secret lies in manufacturing the components (structure, insulation, sensors) off-site and then assembling them precisely. This approach significantly reduces time, costs and CO₂ emissions. In addition, recycled and low-carbon materials are used. However, this approach faces systemic obstacles.

„Industrialized systems can deliver fast, high-performance, low-carbon housing. But without supporting policies, training, and supply chains, innovation remains on paper.“

This is not just a change in technology; it is a necessary disruption of a notoriously inefficient and carbon-intensive industry. It offers a concrete path to rapidly and sustainably building quality homes at scale.

While industrialized construction solves the problem speeds, another challenge is to ensure that these new buildings contribute positively to their surroundings not only by reducing their footprint but also by actively supporting the community.

Great buildings don't just save energy – they share it too

The concept of nearly zero-energy buildings (NZEBs) is already well-known. But the future belongs to „positive energy buildings“ (PEBs), which go even further. Instead of just minimizing their consumption, they actively produce more energy than they need.

An example is a renovated student dormitory in Cluj-Napoca, Romania. Thanks to innovative technologies such as recycled photovoltaic facade panels and geothermal walls, the building not only reduces its own energy bills, but also generates a surplus. This is then shared with surrounding buildings, creating benefits for the entire community. This approach is part of a broader strategy that the project is testing across Europe – from hydrogen storage in Innsbruck to user engagement systems in Tallinn that incentivize energy-saving behavior.

This concept fundamentally changes the way buildings are viewed – from passive energy consumers, they become active and helpful participants in the local energy network, thereby supporting community resilience and cohesion.

These technological innovations are impressive, but they bring us back to the initial question: How do we ensure that they serve people and do not cause social exclusion? The answer lies in a direct methodological counterpoint to the problem of green gentrification.

True innovation means building with people, not just for them

The REN+HOMES project differs from purely technological projects in its emphasis on social impact and citizen participation. The technologies selected for the project were deliberately affordable and widely available, so as not to be „luxury experiments“. They were combined into „replicable technology packages“ and tested with the aim of creating new dynamic certification systems.

A key method was co-design workshops with future residents and monitoring their behaviour to understand their real-world needs. This approach ensures that the solutions are not only technically perfect, but also practical and truly improve the quality of life. As project coordinator Margherita Fabbri highlights:

„"We don't just build for users, we build with them. It is essential to understand their real needs, not only from an energy perspective, but also in terms of how they live in buildings, how they manage them and how they experience them."“

This participatory approach is essential for long-term success, as it ensures that new housing solutions are adopted, used effectively and truly benefit people.

This human-centered approach reveals the final and perhaps most important rule: even the best technologies and most engaged communities will hit a ceiling if a support system is lacking.

Technology is ultimately useless without the right policies

The main message from the experts involved in the project is clear: technology alone will not solve the housing crisis. Broader, structural changes are needed. Marco Peverini argues that housing should not be seen simply as a market commodity, but as a „collective infrastructure“ that creates social and environmental value.

There are positive examples. Vienna, where almost half of the housing stock is publicly or co-managed, has the leverage to implement large-scale renovations and effective rent control – something that is almost impossible in a purely market system. Barcelona, although it has less public housing, is moving in a similar direction – regulating tenancies and investing in cooperative and public rental housing. These models show that the right policies are key.

A just green transition, Peverini concludes, „depends not only on technology, but also on the housing policies and ownership structures into which we choose to embed it.“

More than just bricks and mortar

Building the future of housing is not just about technology, energy efficiency or construction speed. It is about integrating social dignity, community and smart policies into the very foundations of our homes. Experience from projects like REN+HOMES shows that the best solutions emerge when technical innovation is combined with a deep understanding of human needs and strong political will.

In a context where housing is often thought of exclusively through the lens of mortgages and market prices, this vision is a radical but necessary change. Are our cities and policymakers ready to take on this challenge and rethink housing not just as a commodity, but as a cornerstone of a just and sustainable future for all? JRi