Denmark

In Denmark, the home ownership rate stands at about 61 percent for 2024, while approximately 39 percent of people rent their home. The median price to buy an apartment nationwide in mid-2025 is around 16,105 Danish kroner per square meter, which is roughly 2,155 euros per square meter. In Copenhagen, prices are higher, ranging from 18,500 to 22,000 kroner per square meter, or about 2,480 to 2,950 euros per square meter. On the rental side, long-term rents average between 12 and 25 euros per square meter monthly for city apartments, with Copenhagen on the higher end. Across Denmark, average rental yields for good quality apartments are around 4–5% annually.

Publicly owned housing, known as social housing (almene boliger), makes up about 20% of the housing stock in Denmark. Social housing is operated by non-profit housing associations and is supported by municipalities, offering cost-based rents below private market rates, with long waiting lists in larger cities. Public housing and social housing are typically the same in Danish practice: both refer to the "almene" non-profit sector managed independently from municipal government, though municipalities have influence through regulation and the allocation of homes to those in need. In major city areas, up to 25% of new developments can be mandated as social housing, though the share in new construction is often lower. Social housing plays a crucial role in providing affordable, stable accommodation but faces challenges due to rising land costs and increasing demand. All currency conversions at 1 EUR = 7.48 DKK.

Denmark is experiencing a severe housing crisis, especially in its largest cities. Residential property prices have reached record highs in 2025, with apartments in Copenhagen doubling in value over the past decade and now standing at the highest levels ever recorded. This surge is being driven by strong buyer demand, low interest rates, and, crucially, an ongoing shortage of new housing supply. Despite economic growth and higher household wages, the number of new homes being built fell sharply in 2024—by over 27%—with only about 27,600 units completed. At the same time, population growth in urban centers like Copenhagen, Aarhus, and Aalborg is outpacing new construction, deepening the supply gap.

Those most affected include young adults, students, low- and middle-income earners, and families in cities who struggle to find affordable flats or entry-level homes. Waiting lists for cost-based, non-profit “almene boliger” (social housing) are long, especially in Copenhagen. Many working Danes are pushed towards increasingly expensive rents, and newcomers find it especially hard to secure housing. Regional differences are stark: Copenhagen, in particular, faces acute shortages, while smaller cities experience less pressure. The housing crisis in Denmark has both widened inequalities and made stable, affordable housing increasingly inaccessible for vulnerable groups and first-time buyers.

The Danish national government is addressing affordable and sustainable housing primarily through legislative reforms, financial incentives, and climate-oriented regulations. A key recent policy is the Housing First law, enacted in 2023, which aims to reduce homelessness and provide stable, permanent housing for vulnerable groups. This law includes financial support for municipalities to move citizens from temporary shelters to permanent homes and a fund of 134 million euros to subsidize affordable rent in homes assigned by local authorities.

Beyond homelessness, Denmark is expanding its Green Housing framework to drive sustainability across the sector. New residential construction faces strict CO2 limits from 2025, aiming to lower emissions and stimulate investment in eco-friendly buildings. The government allocated over 161 million euros from 2023–2024 for climate adaptation, focusing on green district heating and sustainable materials. Builders are incentivized by tax breaks and subsidies to adopt energy-saving designs, especially in large-scale social housing and renovations.

Furthermore, inclusionary zoning rules let municipalities mandate that up to 25% of new developments be social or affordable housing. Innovative finance tools, such as 40-year interest-free loans for developers, help keep rents below market levels and support affordable housing supply.

There are also initiatives for seniors, with a push for more accessible, community-oriented homes as Denmark’s population ages. New employer regulations from 2025 now mandate higher housing standards for employees.

Altogether, Denmark tightly integrates affordable housing goals with sustainability, setting strict targets and offering concrete financial and regulatory support to accelerate change.

Housing cooperatives, known as "andelsboligforeninger" in Denmark, represent a significant form of collective home ownership distinct from both rental and traditional private ownership. As of early 2025, cooperative housing accounts for about 7% of the country’s total housing stock, making it a stable but relatively smaller sector compared to private ownership and social housing.

Cooperative housing primarily appeals to middle-income groups seeking secure, community-oriented living at below-market costs. The model allows members to collectively own their building and democratically manage maintenance and policies. Demand remains steady, particularly in urban areas where property prices are high, but recent years have seen slow growth due to increased regulation, challenges in new land allocation, and stricter financing requirements.

The Danish government does not have large-scale national promotion programs for cooperative housing as it does for social housing, but some municipal initiatives support co-ops through access to land and modest regulatory facilitation, especially in new developments. National policy has generally focused on ensuring transparency and financial stability in the sector, while also protecting residents from speculative resale.

Overall, cooperative housing remains a stable pillar of Denmark’s diverse housing landscape, with its future growth closely tied to municipal planning, regulatory climate, and ongoing demand in urban centers.