The Issues

Today, buildings are treated as investments rather than spaces for people to live in. Due to financial speculation, millions of square meters sit empty and ruined or are demolished and replaced: from functioning family homes to abandoned industrial and office spaces. For real estate speculators, every building is up for demolition!

By 2050, we will have demolished about 2 billion square meters of existing space in Europe. This is the equivalent of half of Germany's building stock and more than Paris or Berlin in their entirety. Instead, we will have built billions of square meters of new space as a replacement for what was already there. ​This practice creates social, economic, environmental, and cultural problems as demolition comes with a loss of homes, jobs, energy, and history.

The Speculation Issue

The current system is designed to demolish and build anew, driven by regulations and incentives that favor new construction. Existing buildings are replaced with high-end developments, putting profit over people. However, the relation between speculation and redevelopment, with the needs of communities and ecosystems, is complex.

While development is essential for our society, it's equally crucial to ensure that it doesn't come at the expense of existing communities, local economies, our planetary ecosystem, and history. Thus, our aim is to shed light on the harmful practices of speculative real estate development that are the reason for demolition and that impact each and every one of us.

The Construction Crisis

The building industry’s impact on our lives is significant, and it is therefore urgent that it becomes part of our daily conversations. It stands as one of the most profitable and vital markets within the EU, yet it is also one of the most significant contributors to CO2 emissions and energy consumption. According to the European Commission, buildings are responsible for approximately 36% of CO2 emissions and 40% of total energy consumption in the EU, representing 35% of energy-related EU emissions in 2021.

Moreover, the sector generates over 35% of the EU's total waste, highlighting its substantial environmental footprint. Yet, we maintain a system in which buying something new is cheaper than caring for the old. This system prioritizes financial profit over the well-being of the people and the planet. A system in which renovation and adaptation have taken a backseat to demolition and new construction.

This may have worked in the past, when resources seemed in endless supply and new construction was cheaper, faster, and easier than dealing with existing buildings. But current material and energy shortages show us that this system no longer works. Therefore, the building sector is pivotal in the social and ecological transformation, and all the parties involved – from the real estate sector to architects to the construction industry – must recognize the risks of demolition and the potential of renovation.

The Renovation Market

The renovation of public and private buildings presents enormous potential. The goal of EU member states to renovate our existing buildings by 2050 can be translated into tangible numbers: Currently, only 25% of the European building stock has been renovated, meaning that 75% of the work is still ahead of us. At the current annual renovation rate of 1%, it would take three times longer than we have to reach the agreed goals. Therefore, we face a reality: we need to triple the renovation rate to reach our goals!

To do so, we must recognize the value of existing buildings and prioritize their renovation. Renovation is a great answer to ensure affordable living spaces, support small and medium-scale businesses, reduce CO2 emissions, and preserve memories and communities. So, how do we achieve a shift and make a change in reality? The EU has the power to change this by implementing the objectives of HouseEurope!

➔ Preserving Existing Structures: Advocate for the preservation, renovation, and adaptive reuse of buildings to conserve resources, reduce CO₂ emissions, and maintain cultural and historical continuity.

➔ Implementing Economic Incentives: Propose measures like tax incentives and harmonization of standards to make renovation more attractive and economically viable than demolition.

➔ Valuing Embodied Energy: Highlight the importance of accounting for the energy already invested in buildings to shift past environmental impacts toward future sustainability.

➔ Creating Affordable Housing: Leverage the cost advantages of existing buildings to create affordable living spaces, mitigate gentrification, and prevent displacement of communities.

➔ Transforming the Construction Sector: Aim to shift the industry from material-intensive to labor-intensive, creating jobs and boosting local businesses across Europe.

➔ Aligning with EU Policies: Build on existing national and EU legislation to promote renovation and transformation and enhance sustainability – socially, economically, and ecologically.

➔ Reaching Climate Goals: Encourage renovation and transformation of existing buildings, contributing to the EU’s goal of decarbonizing the building stock by 2050.