Belgium

Belgium’s housing market continues to grow, with residential property prices rising 2.7% in the first quarter of 2025. About 70% of Belgians own their homes, while approximately 30% rent. The average price to buy an apartment nationally is roughly 3,064 euros per square meter, with median rents around 13 euros per square meter for apartments.

Publicly owned housing (“public housing”) equates to about 6.5% of all housing in Belgium, lower than the European average of 9.5%. Social housing, which is provided by public or non-profit organizations, is an important subset of public housing. In urban areas, such as Brussels, 12% of the population lives in social housing; rates in Flanders and Wallonia are 8% and 10%, respectively.

Social housing is not always identical to public housing: all social housing is publicly regulated, but it may be operated by non-profit entities as well as government authorities. Eligibility is means-tested, waiting lists are common, and rents are strictly controlled to ensure affordability. Demand for public housing remains high, driven by increasing market prices and limited supply.

Belgium faces a severe housing crisis characterized by persistent shortages of affordable and quality homes, affecting both renters and buyers. The crisis is particularly acute for low-income households, migrants, refugees, and other vulnerable groups. In Flanders, approximately 176,000 families are on waiting lists for social housing, while demand far outstrips supply nationwide. Around 50% of private tenants spend over 30% of their income on rent, highlighting significant affordability issues. Nearly one in ten homes across Belgium is classified as poor or very poor in quality. Discrimination further impedes vulnerable populations—especially refugees and migrants—from accessing decent housing.

The European Committee of Social Rights has repeatedly criticized Belgium, notably Flanders, for violating the right to affordable housing, citing inadequate policies and a shortage of social housing options. Many low-income families are forced to rely on insecure, expensive private rentals. Homelessness and housing insecurity are rising due to these structural weaknesses. The crisis is exacerbated by declining residential construction: building permits for new dwellings fell drastically across regions in 2023 and 2024, restricting future supply and pushing up prices. Affordability concerns are widespread: more than half of Belgians now view housing as unaffordable, with young buyers facing the greatest barriers to entry. The lack of coordinated and inclusive housing policies continues to leave many at risk of poverty, discrimination, and exclusion from stable housing.

The Belgian federal government’s current strategy aims to boost affordable and sustainable housing mainly through targeted fiscal, renovation, and administrative reforms. National policy now prioritizes energy-efficient homes and accelerated green renovation, aligning with climate neutrality targets by 2050. The government has introduced stronger tax incentives for energy renovations and is simplifying the approval process for energy improvements in apartment buildings. To encourage sustainable heating, a reduced 6% VAT is now applied on heat pumps for five years, while VAT on fossil boilers is being raised. There is also a harmonized 40% investment deduction for green building projects and a gradual phasing out of fiscal advantages for fossil fuels.

A major new program involves auditing state-owned buildings and repurposing or selling under-used properties, with proceeds earmarked for further housing sector reforms. Additionally, the government is investing in large-scale renovation projects of landmark public buildings to enhance energy performance and accessibility.

Although the government maintains its 2050 climate neutrality commitment, there is currently no national target for increasing the percentage of social housing or setting a strict country-wide affordable housing goal. Nonetheless, the focus is clearly on accelerating energy-efficient refurbishment, enabling more sustainable housing supply, and redirecting fiscal benefits to both homeowners and social housing projects. Demographic projections demand sustained expansion and renewal of the housing stock, and the new government agreement reflects these priorities in its fiscal and administrative actions.

Housing cooperatives, or collective housing projects, represent a small yet growing segment in Belgium’s housing landscape. These initiatives are experiencing renewed attention due to the search for more affordable, sustainable, and community-oriented living arrangements. The Flemish Government Architect and organizations like Samenhuizen have helped stimulate cooperative and cohousing projects, especially since 2009, highlighting their role in addressing affordability and environmental challenges.

Despite increased visibility, cooperative housing remains marginal in terms of overall housing share—no official statistics suggest it accounts for more than 1–2% of total housing stock in Belgium. The majority of Belgians remain homeowners, and most rental or collective housing solutions still target niche groups such as young professionals or environmentally conscious residents. Recent developments indicate a rise in co-living spaces, particularly in larger cities, with demand for flexible and community-based housing models expected to grow further.

National policy has generally supported innovation in housing forms and includes pilot programs that encourage collective building and energy-efficient design, but government action stops short of setting explicit targets or quotas for cooperative housing. Policy incentives, when provided, tend to be local or project-based rather than comprehensive, focusing on simplifying approvals and promoting sustainability or renovation within collective housing. The sector’s dynamism chiefly stems from grassroots initiatives, supported by occasional public pilot projects and municipal backing rather than coordinated national frameworks.