Country

Denmark

Population

5,806,081

Cooperative

8%cooperative housing

Ownership

60%home ownership rate

Social/Public

21%social/public housing

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Housing Crisis

Denmark is experiencing a significant housing crisis marked by rapidly rising prices, limited supply, and increasing difficulty for many to secure affordable accommodation. As of 2025, property prices across the country are steadily climbing, with house prices rising by 5.7% year-on-year and urban apartments—especially in Copenhagen—seeing even higher annual growth, exceeding 6%. This upward trend is driven by persistent housing shortages in major cities, robust domestic demand, and a slump in new construction, with housing completions dropping by over 27% in 2024 compared to the previous year and building permits falling sharply. Urban centers like Copenhagen, Aarhus, and Aalborg face acute supply gaps; for instance, Copenhagen is projected to need over 16,000 new homes by 2030 to keep pace with population growth. Rental prices are also increasing, with rents for all housing types rising by 7.1% over the past three years. The shortage of new housing particularly affects young people, low- and middle-income households, students, and vulnerable residents in social housing districts. Vulnerable groups face additional challenges, such as redevelopment policies in certain social housing areas that can force relocations and reduce the total stock of affordable homes. The crisis is thus most acute among those with the least flexibility and fewest options, while even the lower middle class finds it increasingly hard to afford homes in the major cities.

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National programs

Denmark’s national government is pursuing both **affordable** and **sustainable housing** through several concrete programs and legislative initiatives. A major policy focus is the Housing First approach to reducing homelessness, now enshrined in Danish law. Key programs provide financial incentives for municipalities to help homeless citizens move directly into permanent homes, supported by evidence-based interventions. The government has allocated around 134 million euros (1 billion DKK) to subsidize rents and facilitate more affordable housing, especially in major cities. For sustainable housing, Denmark has imposed stricter climate requirements for new construction, targeting a significant reduction in CO2 emissions for all new buildings by 2025, with an overall national aim to cut construction-related emissions by 70% by 2030. Subsidies and regulations promote the use of eco-friendly materials and renewable energy solutions in new and renovated homes. A dedicated fund supports pilot projects and the development of greener building methods, with at least 13 million euros (100 million DKK) available from 2022–2026 to accelerate sustainable solutions in social housing. Additionally, the government is working with municipalities—especially in larger cities—to increase the stock of social housing, with targeted rent subsidies to keep selected units below 470 euros (3,500 DKK) per month. New legislation also mandates that 25% of new housing in developments includes affordable units, backed by 40-year interest-free state loans to developers. These combined measures underscore Denmark’s dual commitment to affordability and sustainability in housing sector policy.

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Cooperative Housing

In Denmark, cooperative housing (andelsboliger) plays a significant role, accounting for about 7–8% of the national housing stock. The sector is especially prominent in the capital area, where it makes up approximately one-third of the local housing supply. The cooperative model means residents buy a share in a housing association, granting them the right to occupy a specific dwelling, with ownership of the property resting collectively with the cooperative association. There are three main types: traditional cooperatives established before 1981, publicly supported ones from 1981 to 2004, and newer, unsupported cooperatives built since 2004. Growth in the sector has slowed since state support for new cooperatives was terminated in 2005, making it more challenging to establish new projects. Despite this, interest persists, particularly in urban areas where housing affordability remains under pressure. The mortgage and banking system continues to support cooperative homeownership, and in recent years, professionalization and municipal strategies have played a growing role in developing new co-housing initiatives. While national policy does not specifically target cooperative housing in the same way as the broader public and social housing sector, general housing policy in Denmark emphasizes affordability, sustainability, and strong tenant rights. These overarching policies indirectly support cooperative housing by maintaining an open and regulated housing market, but direct government programs for new cooperatives are currently limited. The sector’s ongoing development is mainly driven by local initiatives, market dynamics, and residents’ preferences for democratic, community-based living models.

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Housing Market

As of 2025, Denmark's housing market is characterized by rising prices and a pronounced split between home ownership and renting. Home ownership stands at approximately 61%, while about 39–44% of households rent their homes. Median purchase prices for apartments nationwide average around 16,105 Danish kroner per square meter, and in Copenhagen, prices typically range between 18,500 and 22,000 kroner per square meter. At current exchange rates, this equates to roughly 2,150–2,850 euros per square meter for city apartments. Rental prices have also climbed; the most recent data shows the average rent for newly signed single-family homes is up 3.1% year-on-year, translating to a median rent of approximately 17–20 euros per square meter in urban centers. Publicly owned housing—referred to as social housing in Denmark—constitutes around 20% of the housing stock nationwide and the same share in Copenhagen. Unlike in many countries, Danish social housing is not limited to low-income residents; it is open to all and is owned by nonprofit housing associations. The state and municipalities finance and regulate social housing, and each municipality can allocate up to 25% or, in some cases, up to 100% of new social housing units to priority groups. Social and public housing are functionally identical in Denmark; both terms describe the nonprofit, universally accessible housing sector governed by tenant democracy and municipal allocation policies.

Resources in Denmark

21 resources connected to this country

Stark Group

STARK Group, based in Frederiksberg, Denmark, is one of Europe's largest distributors and retailers of building materials, operating over 1,100...

Frederiksberg•Denmark

Urban Rigger

Urban Rigger, a floating housing project in Copenhagen, uniquely repurposes shipping containers into sustainable, community-oriented student...

Denmark

Housing Crisis

National programs

Cooperative Housing

Housing Market

Resources in Denmark

Stark Group

Urban Rigger

Orienten at Nordhavn

Living Places

Almenr

NREP

Danfoss

Bloxhub

UN 17 village

re:arc institute

Urban Partners

Realdania

Vandkunsten Architects

10th European Conference on Sustainable Cities and Towns 2024

home.earth

C.F. Møller Architects

Lange Eng

EFFEKT Architects

Space10

BIG (Bjarke Ingels Group)

Gehl

Denmark

Housing Crisis

National programs

Cooperative Housing

Housing Market

Resources in Denmark

Stark Group

Urban Rigger

Orienten at Nordhavn

Living Places

Almenr

NREP

Danfoss

Bloxhub

UN 17 village

re:arc institute

Urban Partners

Realdania

Vandkunsten Architects

10th European Conference on Sustainable Cities and Towns 2024

home.earth

C.F. Møller Architects

Lange Eng

EFFEKT Architects

Space10

BIG (Bjarke Ingels Group)

Gehl