Beyond Affordability: Bringing Housing Space Inequality on the Political Agenda

The research brief titled "Beyond Affordability: Bringing Housing Space Inequality on the Political Agenda" is published by the Progressive Politics Research Network, authored by Sebastian Kohl, Max Steinhardt, and Simon Voss. This document aims to shift the focus of the housing debate in Europe from mere affordability to the critical issue of housing space inequality. It highlights the growing problems of overcrowding and under-occupation within the existing housing stock, particularly in the context of sustainable housing solutions.

The brief reveals that overcrowding is especially prevalent among specific demographics such as immigrants, young adults, single parents, and urban renters. In Germany, approximately 13% of urban residents live in overcrowded conditions, up from 8% a decade earlier. Notably, subjective perceptions of overcrowding are even more widespread, with about one in five respondents feeling that their dwelling is too small.

Conversely, under-occupation is on the rise, with 35% of urban households classified as under-occupied—having more rooms than necessary based on household size. However, only 15% of these individuals perceive their homes as too large. This discrepancy indicates a complex relationship between actual living conditions and individuals' perceptions.

The research highlights that socio-demographic factors are more predictive of overcrowding than income or housing costs. For instance, being foreign-born is linked to an 11-percentage point higher likelihood of living in overcrowded conditions, even after accounting for various factors like income and education. Additionally, families with children are more likely to experience overcrowding, while individuals with higher educational attainment are less likely to do so.

Under-occupation rates are similarly influenced by demographic factors. Families with children and younger individuals tend to have lower rates of under-occupation, indicating that socio-economic resources and household composition significantly affect living space distribution.

The issue of housing space inequality is not limited to Germany; similar patterns are observed across Europe. Overcrowding rates are highest in Eastern and Southern EU member states, with countries like Romania and Bulgaria often exceeding 30%, while Northern and Western nations like the Netherlands and Belgium report rates below 5%. This suggests that Germany's housing space inequality is part of a broader European challenge, emphasizing the need for cross-national policy solutions.

The authors argue that current policy discussions frequently prioritize new construction as a solution to housing shortages, overlooking the potential for reallocating existing living space. They advocate for measures such as housing exchanges and downsizing incentives to address overcrowding and under-occupation. By focusing on the redistribution of existing housing rather than solely on increasing supply, policymakers can develop more sustainable and efficient housing solutions.

The research concludes that living space inequality is a critical issue affecting well-being, social mobility, and broader societal inequalities. Addressing overcrowding and under-occupation requires targeted, nuanced measures rather than catch-all solutions. Promoting the efficient and equitable use of housing space should be integral to social policy, particularly in the context of sustainable housing in Europe.