Europe is facing a troubling situation—while millions struggle with housing insecurity, many buildings remain empty. With 30 million homes in Europe sitting vacant and 900,000 people homeless each night, the need for solutions is urgent. Adding to the crisis, the building sector is responsible for up to 35% of Europe’s energy-related CO₂ emissions. Tackling both the housing shortage and climate concerns requires innovative action.  

Ana Carolina Gomes, Associate Director for Strategy and Operations at Habitat for Humanity International, is leading efforts to address this gap. At the World Urban Forum organized by UN-Habitat in November 2024, she outlined Habitat for Humanity’s plan to repurpose vacant buildings—a strategy that combines social impact with environmental responsibility. The goal is to increase affordable housing while also reducing carbon emissions.  

A proven model for sustainable housing solutions  

Habitat for Humanity’s approach builds on research-backed strategies and demonstration projects that support policy change. The process follows a structured approach:  

• research and data collection – gathering reliable data to push for policy changes. 
• demonstration projects – refurbishing empty spaces to show practical, scalable solutions. 
• stakeholder collaboration – working with governments, industry leaders, and financial institutions to create lasting change. 
• advocacy for policy change – engaging with policymakers to integrate sustainable housing solutions into national programs.  

This method ensures that solutions are not just theoretical but have been tested in real-world conditions.  

From the UK to Poland - Expanding the model  

The first version of this model started in the UK, where Habitat for Humanity Great Britain, with help from donors mainly M&G, renovated empty buildings in London. The project successfully turned vacant properties into homes and created toolkits to help local governments implement similar projects.  

Next, the project moved to Poland, where the Social Rental Agency model was introduced. Unlike in Western Europe, where rental markets are more structured, Central and Eastern Europe still faces housing systems influenced by the post-Soviet era. With less than 5% of the housing stock being affordable, innovative solutions are needed.  

Social Rental Agencies act as intermediaries, connecting private property owners with people in need of affordable housing. This model ensures sustainable housing management while preventing newly refurbished properties from becoming segregated, low-income areas. Instead, a focus on social cohesion promotes diverse tenant communities.  

A flagship project  

Building on these successes, Habitat for Humanity launched the Empty Spaces to Homes initiative, a flagship program supported by Laudes foundation and M&G, aimed at identifying scalable financial solutions. Through this initiative, several housing units will be renovated to demonstrate cost-effective, climate-friendly ways to repurpose vacant buildings.  

Key outcomes of the project include:  

• financial innovation – researching market-based funding models to ensure long-term scalability. 
• policy advocacy – Working with local and national governments to encourage the reuse of vacant properties. 
• carbon impact assessment – measuring CO₂ savings from repurposed buildings to align with EU climate goals.   

Advocacy at the EU level

Beyond local efforts, Habitat for Humanity is pushing for EU-wide reforms to make repurposing vacant buildings a central part of Europe’s housing policy. Their advocacy focuses on:  

1. A unified definition of vacant real estate – standardizing definitions across EU countries for more reliable data. 
2. Comprehensive mapping of vacant properties – conducting extensive research to identify available spaces. 
3. Awareness campaigns – promoting the environmental and social benefits of reusing empty properties. 
4. Strategic EU funding – directing resources from existing programs to speed up the conversion of vacant buildings into affordable homes.  

A path forward

As Ana Carolina Gomes emphasizes, solving Europe’s housing crisis requires collective action. Governments, businesses, and civil society must work together to transform empty spaces into homes. By using market-based solutions, building partnerships, and pushing for policy change, Habitat for Humanity is showing that sustainable, affordable housing solutions are possible.  

The vision is clear: a future where no home is left empty while people remain without shelter. With the right strategies and collaboration, Europe can close the housing gap and fight climate change—one repurposed building at a time.  

Read our manifesto on opportunities for the European Union for 2024-2029.  

Also, read the manifesto for Practical Policies for a Just and Resilient Built Environment by the Laudes Foundation Coalition.  

Last year, Habitat for Humanity International had the opportunity to participate in the United Nations Economic Commission for Europe (UN-ECE) Forum of Mayors in Geneva, Switzerland. This high-level event brought together representatives from 40 national governments, local authorities, and housing and climate experts from across the continent to explore sustainable urban solutions. We joined the forum to present one of our most transformative initiatives—Empty Spaces to Homes—a project that reimagines vacant buildings as a key part of solving Europe’s housing and climate crises.

Across Europe, 30 million buildings sit vacant while nearly 900,000 people experience homelessness each night. This stark contrast reveals both a significant problem and a tremendous opportunity. Habitat for Humanity’s Empty Spaces to Homes project, supported by Laudes Foundation and M&G, is addressing these challenges by transforming vacant buildings into sustainable, affordable housing. Rather than constructing new homes that contribute to environmental harm, the project revitalizes abandoned properties, reducing waste and tackling two urgent issues: the housing crisis and the building sector’s carbon footprint, which accounts for 35% of the EU’s energy-related emissions.

Bringing the vision to life: success in the UK and Poland

The initial phase of this project has already yielded impressive results in the UK and Poland. 

In the UK, with generous support from M&G as a main donor, the initiative has expanded beyond just constructing homes. It’s also focused on building partnerships, engaging local communities, and influencing public policy. Since its inception in 2019, by 2023 the UK project had completed critical research, forged key partnerships, and delivered its first housing projects. 

In Poland, the focus has been on collaborating with Social Rental Agencies to connect landlords with tenants in need of affordable housing. This model has proven particularly effective in Central and Eastern Europe, where the large-scale privatization of housing in the 1990s reduced the availability of public housing options. These pilot programs are laying the groundwork for broader, long-term change.

Taking the message global

Habitat for Humanity International’s participation at the UN-ECE conference in Geneva offered a unique platform to present the Empty Spaces to Homes initiative to decision-makers from 40 governments, major European cities, and climate and housing experts. These influential figures play key roles in shaping the future of housing policy across Europe. By presenting the project to such an esteemed audience, Gyorgy Sumeghy, representing Habitat for Humanity, amplified the message that Europe’s vacant buildings are not just eyesores—they’re valuable assets capable of addressing two pressing challenges: the housing crisis and climate change.

This presentation provided a powerful platform to advocate for scalable solutions that transform vacant buildings into homes, reduce carbon emissions, and help build more inclusive communities. The conference sparked vital conversations about the policy changes and long-term support needed to scale initiatives like Empty Spaces to Homes. This marked a significant step toward ensuring the project’s impact spans across Europe, shaping national policies and promoting the adoption of similar solutions continent-wide.

A call for policy change

To maximize this impact, Habitat for Humanity is advocating for key policy changes at the EU level, including:

• establishing a clear definition of “vacant real estate” to streamline data collection and decision-making.
• mapping Europe’s vacant properties to pinpoint where housing solutions are most needed.
• launching campaigns to raise awareness about the environmental and social benefits of repurposing empty buildings.
• allocating funding from existing EU programs to support these initiatives.

Changing how we view housing

Empty Spaces to Homes challenges the widely held belief that new construction is the only solution to housing shortages. Instead, it promotes a paradigm shift in how we view vacant buildings—not as problems, but as untapped resources ready for transformation into homes. 

The message is clear: Europe’s empty buildings are not liabilities—they’re opportunities. By embracing this vision, we can solve the housing crisis, reduce carbon emissions, and create inclusive, sustainable communities for the future.

For many low-income families and small businesses in Kenya, a single disaster—such as a fire or flood—can mean financial ruin. Shockingly, 35% of Kenyans have lost homes, businesses, or property due to fire, floods, theft, or eviction in the last two years, yet few have access to property insurance to protect their assets.

Across Africa, only 4.5% of people with microinsurance have property coverage, compared to 52% for life insurance and 22% for health insurance. This disparity leaves millions exposed to financial shocks, highlighting the often overlooked faced by low-income families and small businesses. 

Without adequate insurance, rebuilding after disasters is a slow and uncertain process, keeping families and businesses in a cycle of economic vulnerability.

Recognizing this gap, Habitat for Humanity’s Terwilliger Center for Innovation in Shelter (TCIS) partnered with the International Labour Organization’s (ILO) Impact Insurance Facility and Britam Insurance to develop affordable and accessible property microinsurance solutions. Through this initiative, more than 109,800 new policyholders—including MSMEs, women, and rural residents—gained access to affordable insurance for their homes and businesses, offering them a critical financial safety net.

Barriers to property insurance adoption

Phase 1 of the project identified key barriers to property insurance adoption: 

• Lack of awareness – Many potential customers are unaware of property insurance and its benefits.
• Complex policies – Technical jargon and lengthy contracts discouraged sign-ups.
• Affordability concerns – Rigid payment structures made it difficult for low-income families to access coverage.

To overcome these challenges, the project focused on simplifying insurance policies, raising awareness, and introducing flexible payment models that made insurance more accessible to underserved communities.

Challenges and lessons learned

While Phase 1 made significant strides in bridging the insurance gap, challenges remain: 

• Market hesitancy – Some insurers are cautious about developing new inclusive products.
• Low demand perception – Even among aggregators, there was limited interest in property insurance beyond mortgage providers.
• Need for better distribution – Finding the right channels to reach low-income consumers is critical for long-term success.

Looking ahead: What to expect in phase 2

Building on the successes and lessons from Phase 1, Phase 2 will focus on: 

• Scaling flood insurance – Expanding coverage to better protect climate-vulnerable communities.
• Integrating early warning systems – Helping households and businesses prepare for and mitigate risks.
• Expanding access: Aiming to reach over 300,000 policyholders by the end of 2025 and 500,000 by the end of 2026.

Inclusive property insurance is a powerful tool for resilience, ensuring that when disaster strikes, families and businesses can rebuild faster and more effectively.

Read the full report here: 

Lithuania has made significant strides toward achieving a climate-neutral economy by 2050, with renewable energy (RE) at the heart of this transition. However, while the country continues to expand its RE capacity, some key challenges remain—especially for homeowners in multi-family buildings. A recent study highlights how legal, financial, and informational barriers are slowing the adoption of small-scale renewable energy solutions, despite a growing interest in energy efficiency upgrades.  

The research is part of the SUNRISE project.

Funded by the European Climate Initiative (EUKI), the project is focused on supporting the deployment of solar power installations in multi-family buildings across North Macedonia, Bulgaria, and Lithuania. Running from 01.11.2022 to 30.04.2025, the project is led by Initiative for Housing in Eastern Europe (IWO) in partnership with Habitat Bulgaria, Lithuanian Consumers Alliance (LCA), Habitat for Humanity International (HFHI), German Solar Energy Company (DGS), and Habitat Macedonia.

Challenges for Multi-Family Buildings

Multi-family buildings make up nearly 50% of Lithuania’s housing stock, presenting a major opportunity for implementing smaller RE solutions like solar water heaters, heat pumps, and rooftop PV systems. 

However, several factors complicate the process: 

• Complex decision-making – Unlike single-family homes, these buildings require approval from multiple owners, making it difficult to reach consensus on energy renovations.
• Regulatory hurdles – Permitting processes can be lengthy and complicated, discouraging homeowners from pursuing RE investments.
• Financial constraints – While homeowners recognize the long-term benefits of RE, many struggle with the high upfront costs and lack awareness of available subsidies or low-interest loans.
• Limited knowledge – Even as general awareness of RE grows, many homeowners lack technical knowledge about system performance, costs, and maintenance.  

What Motivates Homeowners to Invest in Renewable Energy?

Despite these challenges, the research shows that financial benefits are the strongest motivator for RE adoption. Homeowners are primarily interested in lowering their energy bills, reducing environmental impact, and increasing property value. However, the relatively low cost of electricity for shared building needs means that without state support, many remain hesitant to invest.  

Another key finding is the critical role of homeowner association (HOA) leaders in driving change. Targeted training programs can equip HOA chairs with accurate, practical information on financing options, administrative procedures, and technology benefits, enabling them to guide their communities toward informed decisions. 

Accelerating Renewable Energy Adoption in Lithuania

To unlock the full potential of RE in Lithuania’s multi-family buildings, a multi-faceted approach is needed:  

• Simplifying administrative procedures – Reducing bureaucratic barriers and streamlining permitting processes to make RE adoption more accessible.
• Expanding financial support – Increasing grants, subsidies, and low-interest loans to help cover installation costs.
• Enhancing information accessibility – Developing targeted awareness campaigns and training HOA leaders to share RE knowledge effectively.
• Strengthening grid infrastructure – Addressing technical limitations that prevent easy integration of RE solutions into existing energy networks.  

Building a Sustainable Future

Lithuania’s renewable energy adoption depends on proactive policy changes, financial accessibility, and community engagement. 

By removing barriers and providing the right support, the SUNRISE project is building a cleaner, more energy-efficient future. 

As Bulgaria continues to embrace renewable energy (RE) solutions, the differences in financial readiness, awareness, and willingness to invest between neighborhoods highlight the need for tailored approaches to energy transition. A recent assessment of two multifamily residential buildings—one in Zaharna Fabrika and another in Knyazhevo—provides valuable insights into the factors influencing RE adoption and the steps needed to bridge existing gaps.

The research is part of the SUNRISE project.

Funded by the European Climate Initiative (EUKI), the project is focused on supporting the deployment of solar power installations in multi-family buildings across North Macedonia, Bulgaria, and Lithuania. Running from 01.11.2022 to 30.04.2025, the project is led by Initiative for Housing in Eastern Europe (IWO) in partnership with Habitat Bulgaria, Lithuanian Consumers Alliance (LCA), Habitat for Humanity International (HFHI), German Solar Energy Company (DGS), and Habitat Macedonia.

By overcoming key barriers, SUNRISE is making it easier for communities to embrace cleaner, more sustainable energy solutions.

Understanding the Two Neighborhoods

The study compares two contrasting communities in Bulgaria: Zaharna Fabrika, a lower-income neighborhood with limited completed energy efficiency renovations, and Knyazhevo, a higher-income area with greater investment potential but lingering skepticism toward RE solutions. While both neighborhoods show an interest in RE, their financial and informational barriers require distinct solutions.

Key Challenges Identified

The research identifies key challenges for the adoption of renewable energy (RE) in two neighborhoods: Zaharna Fabrika and Knyazhevo. These challenges include gaps in awareness and information about available financing programs, with Zaharna Fabrika residents particularly uninformed. 

While most households are willing to invest in RE, Knyazhevo residents have a higher investment capacity, while Zaharna Fabrika households need substantial external financial support. Trust issues, complex administrative processes, and skepticism about the benefits of RE also hinder adoption. Additionally, many residents are unaware of the financial benefits of contributing surplus energy to the grid.

Strategies to Accelerate RE Adoption

To accelerate RE adoption, the research recommends several strategies. 

These include targeted awareness campaigns tailored to each neighborhood’s needs, enhanced financial support mechanisms such as grants and preferential loans, and facilitating collective financing through homeowners’ associations (HOAs). 

Simplifying administrative procedures and reducing bureaucratic barriers would also help, along with educating households about energy sales and storage solutions to encourage the efficient use of surplus energy. 

These efforts aim to make RE adoption more accessible and practical for residents, fostering greater participation in sustainable energy solutions.

Moving Forward

The findings from Zaharna Fabrika and Knyazhevo reinforce the importance of targeted, community-specific approaches to RE adoption. Financial incentives, regulatory reforms, and structured information campaigns will play a crucial role in overcoming existing barriers. 

By implementing these strategies, Bulgaria can accelerate its transition to a more sustainable energy future, ensuring equitable access to renewable solutions for all households.

As climate change continues to impact our planet, transitioning to renewable energy sources like solar power (PV) has never been more urgent. Not only do these sources help reduce greenhouse gas emissions, but they also enhance energy independence. 

This is where the SUNRISE project comes in. 

Funded by the European Climate Initiative (EUKI), the project is focused on supporting the deployment of solar power installations in multi-family buildings across North Macedonia, Bulgaria, and Lithuania. Running from 01.11.2022 to 30.04.2025, the project is led by Initiative for Housing in Eastern Europe (IWO) in partnership with Habitat Bulgaria, Lithuanian Consumers Alliance (LCA), Habitat for Humanity International (HFHI), German Solar Energy Company (DGS), and Habitat Macedonia.

By overcoming key barriers, SUNRISE is making it easier for communities to embrace cleaner, more sustainable energy solutions.

Why Solar Energy?  

Switching to solar power isn’t just good for the environment—it can also help families save money on energy bills and become more energy independent. However, despite its benefits, many people face significant challenges when trying to install solar panels in their apartment buildings. These include:  

• High upfront costs
• Complicated legal and bureaucratic processes
• Lack of clear information and support
• Concerns about maintenance and long-term reliability

The SUNRISE project aims to break down these barriers by promoting plug-in photovoltaic (PV) systems, which are easy to install and require minimal effort from homeowners. It also advocates for net metering, allowing households to sell excess electricity back to the grid—helping them save even more.  

What Have We Learned from the research in North Macedonia

To understand how to best support homeowners, a team of researchers conducted surveys, interviews, and focus groups with residents and homeowner associations in Skopje and Bitola. The findings were both encouraging and eye-opening:  

• People Want Solar Energy – 75% of those surveyed said they were aware of solar power, and 72% would invest in it if financial barriers were reduced.
• Money Is a Major Concern – 68% cited high upfront costs as the biggest challenge, and only 21% felt financially secure enough to make the investment without outside help.
• The Legal Process Is Complicated – 64% of people in apartment buildings said getting approval from all residents was difficult, slowing down the transition to renewable energy.
• Better Information Is Needed – Over half (55%) of participants were unaware of existing financial aid options, like subsidies and low-interest loans.
• Maintenance Worries People – 51% of respondents were hesitant to invest because they were unsure about long-term maintenance and repair costs.  

The Path Forward  

To make solar energy more accessible, the SUNRISE project recommends:  

• Increasing financial support – Expanding subsidies and creating low-interest loans to help with the initial cost.
• Simplifying legal procedures – Making it easier for residents in apartment buildings to install solar systems without excessive paperwork.
• Boosting public awareness – Running information campaigns so people understand how solar energy works and where to get financial support.
• Ensuring long-term maintenance – Setting up reliable services for installation, repairs, and upkeep.  

With the right support, North Macedonia can start helping families reduce energy costs, protect the environment, and achieve greater energy independence.  

The SUNRISE project is working on cleaner, greener future.