Copenhagen

In Copenhagen, as of mid-2025, about 20% of the city’s residential units are social/public housing, while private renters make up a much larger share than homeowners; owner-occupied homes are estimated at around 22-24% of the total, and the majority of Copenhageners rent their homes. The average price to buy an apartment in the capital is approximately 42,769 DKK (about 5,730 euros) per square meter for owner-occupied flats, with prime central areas reaching over 60,000 DKK (about 8,040 euros) per square meter. Rental prices average around 2,160 DKK (292 euros) per square meter per year, translating to a monthly rent of about 1,800 euros for a standard two-bedroom central apartment.

Publicly owned housing in Copenhagen functions as social housing, which prioritizes low- and middle-income groups with regulated rents and long waiting lists. Social housing is managed by non-profit organizations with government oversight, distinct from purely market-based public rental housing that may exist in other European cities. Recent policies require up to 25% of new developments to be set aside for social housing, but such housing typically remains about 20% of the city’s stock, and new provision has struggled to match demand due to land and cost constraints.

In summary, the Copenhagen housing market is increasingly expensive and competitive, with low ownership rates, most residents renting, persistent shortages of affordable and social housing, and rising prices for both rentals and purchases. Public/social housing remains a limited but crucial part of the safety net for affordable urban living. All prices are given in euros for clarity.

Copenhagen faces a significant housing crisis marked by rising demand, soaring prices, and persistent shortages, especially for affordable homes. The city’s population has grown rapidly—about 40% since the mid-1990s—driving a need for close to 50,000 new dwellings by 2025 and an estimated 30,000 more by 2035. This surge in demand has not been met by supply, aggravated further by a slowdown in new residential construction and a large share—about 40%—of older housing that requires renovation or replacement.

The crisis primarily affects renters, low-income groups, students, young adults, and vulnerable populations such as ethnic minorities and the homeless. Poor and low-income residents—constituting about 20% of Copenhagen, double the national average—often live in inadequate housing. Homelessness is concentrated in the capital, with estimates suggesting that half of Denmark’s 10,000–15,000 homeless are in the Copenhagen area.

Social housing and affordable homes remain limited and difficult to access due to long waitlists and restrictions in some areas, disproportionately impacting those on low incomes, ethnic minorities, and people with special needs. Additionally, renovation and redevelopment policies in certain districts have resulted in displacement, further reducing the availability of affordable units for those most in need. The combination of high demand, insufficient supply, and structural barriers makes Copenhagen’s housing crisis acute, especially for its most vulnerable citizens.

Copenhagen’s administration addresses affordable and sustainable housing with a mix of regulatory, financial, and planning tools shaped by both city and national policy. The city recently reaffirmed a requirement that 25% of units in new residential developments must be reserved as affordable or social housing, supported by national interest-free loans over 40 years and public-private partnerships to reduce project costs. Renovation of existing affordable and social housing is a priority, backed by approximately 4 billion euros from the National Building Fund (2022–2025) to both preserve affordable rents and cut energy use by up to 40%. To increase land availability, a new loan scheme of 241 million euros allows non-profit housing associations to buy building plots in high-cost districts, targeting mixed-income neighborhoods and fast-tracking social housing with a dedicated city-state task force.

For sustainability, Denmark’s tightening CO2 limits for new construction—now at just 7.1 kg CO2e per square meter per year from mid-2025—directly shape what is built in Copenhagen, driving green design and low-carbon materials. The city and state also invest in green district heating and fund sustainable pilot housing projects (minimum 13 million euros from 2022–2026). Targets for the sector stress mixed, inclusive urban neighborhoods, up to 8,000 new units for students and vulnerable groups, and significant emissions reductions in new and renovated homes. The approach integrates affordability with environmental goals, but supply gaps and construction slowdowns remain major barriers.

In Copenhagen, housing cooperatives (called andelsboligforeninger) are a significant part of the urban housing landscape, representing roughly 30% of all residential units. This form of tenure lies between owner-occupation and renting, as residents collectively own the property but hold individual rights to their apartments. Most cooperative housing is found in older districts, established primarily from the late 19th century through the 1970s, though new developments continue in response to high housing demand.

The sector is evolving, with renewed interest due to escalating prices for rentals and ownership. Cooperative housing is seen as a more affordable and stable alternative, though prices for shares in popular cooperatives have also risen sharply—sometimes approaching free-market levels. Current debates focus on preserving the non-profit ethos of the model and on improving access for younger and less affluent residents.

Recent municipal policy seeks to promote affordable cooperative and non-profit housing through urban planning, requirements for social housing in new developments, and various financial support instruments. However, there are currently no dedicated large-scale municipal support programs aimed specifically at establishing new cooperative housing projects; most promotion is indirect, via regulatory zoning lists and priority access to land for mixed-income and non-profit projects. Despite these steps, creating new cooperative housing units is often limited by high land prices and competition from investors. The cooperative sector remains a crucial, if embattled, pillar supporting affordable urban living in Copenhagen.