Beyond Affordability: Bringing Housing Space Inequality on the Political Agenda

This resource, titled "Beyond Affordability: Bringing Housing Space Inequality on the Political Agenda," is published by the Progressive Politics Research Network and authored by Sebastian Kohl, Max Steinhardt, and Simon Voss. It highlights critical issues surrounding housing space inequality in Europe, emphasizing the need to address not just affordability but also the distribution of living space in the housing market.

The report asserts that the public debate on housing in European countries predominantly focuses on affordability and the construction of new housing. However, it neglects the rising issues of overcrowding and under-occupation within the existing housing stock. Overcrowding is particularly prevalent among vulnerable groups such as immigrants, young adults, and single parents, while older populations experience high levels of under-occupation. In Germany, for example, approximately 13% of urban residents lived in overcrowded homes by 2022, a significant increase from 8% a decade earlier.

The study uses data from the German Socio-Economic Panel to illustrate how socio-demographic factors are strong predictors of overcrowding. Young adults aged 18 to 25 face overcrowding rates exceeding 20%. Additionally, being foreign-born increases the likelihood of living in overcrowded conditions by 11 percentage points, even when controlling for income and education. Conversely, older adults and homeowners are more likely to inhabit under-occupied homes, with 35% of urban households classified as under-occupied by 2022.

The report notes that Germany's housing space inequality is not unique but reflects broader patterns observed across Europe. Overcrowding rates are particularly high in Eastern and Southern European countries, while Northern and Western countries report much lower rates. These disparities highlight the need for cross-national learning regarding effective housing policies, especially in urban contexts where vulnerable groups are disproportionately affected by overcrowding.

The authors argue that current policies primarily focus on increasing housing supply through new construction, which can be costly and contribute to carbon emissions. Instead, they advocate for reallocating existing housing space through measures such as housing exchanges and downsizing incentives. This would not only address overcrowding but also alleviate the carbon footprint associated with new builds. The coexistence of overcrowding and under-occupation points to a structural misallocation of housing rather than an absolute shortage.

To address these housing issues effectively, the authors suggest targeted measures that focus on the unique needs of different demographic groups. For instance, promoting internal apartment swaps within social housing can streamline the process of reallocation. Additionally, implementing political programs that incentivize older residents to downsize could facilitate a more equitable distribution of housing space, thereby enhancing overall well-being and social mobility.

In summary, "Beyond Affordability" emphasizes the urgent need to bring housing space inequality to the forefront of the political agenda. By focusing on the distribution of living space rather than solely on affordability, policymakers can develop more sustainable housing solutions that address the diverse needs of European populations.