This commentary reflects on the potential of European Union institutions to address the continent's crisis of housing affordability, which was well underway before the COVID-19 pandemic and has been exacerbated in its wake. Despite having no direct competencies in housing policy, European Union norms and policies shape housing conditions in significant ways. The greater level of public spending on housing renovation enabled by the 2021-2027 multiannual financial framework and NextGeneration European Union funding signals a welcome shift away from austerity. However, investment alone is not enough to advance the right to housing and may even reinforce existing inequalities. Plans like the Renovation Wave and the Affordable Housing Initiative must strive not only for climate neutrality but also for housing cost and tenure neutrality. Beyond pandemic recovery plans, this commentary argues that a more thorough departure from the market-based approach underlying the European Union's institutionality is needed to tackle the roots of the current housing problematic.