Could Zurich’s housing cooperatives be the solution to the rest of Europe’s housing crisis?

The article, published by The Guardian and authored by Peter Apps, explores the innovative housing cooperative model in Zurich, Switzerland, and its potential implications for addressing Europe’s housing crisis. The piece reflects on how Zurich's approach could serve as a blueprint for other cities grappling with affordability and sustainability in housing.

In Zurich, the Mehr als Wohnen cooperative exemplifies a different approach to urban living. Children play and families engage with each other in communal spaces, contrasting sharply with typical developments in cities like London. The cooperative model fosters a sense of community, where residents know one another and participate in shared living arrangements. This cooperative consists of 13 blocks of apartments, owned collectively by its residents, which eliminates the presence of landlords and speculative developers, thus supporting affordable housing.

One in five residents in Zurich lives in a housing cooperative, making it possible for poorer, younger individuals and families to find affordable accommodations in the city center. Joining a cooperative requires purchasing a returnable share ranging from 7,000 to 25,000 Swiss francs (approximately £6,500 to £23,500), followed by a cost rent that reflects the actual expenses of property maintenance and debt repayment. This structure contrasts with traditional rental models, which often lead to soaring prices and evictions.

The cooperative housing movement in Switzerland dates back to the late 19th century, emerging from workers' initiatives aimed at securing affordable homes amidst rising speculation. Zurich’s first housing cooperative, Waidberg, was established in 1907, followed by others, including Allgemeine Baugenossenschaft Zürich (ABZ) in 1916. The movement experienced a resurgence after World War II, bolstered by government support through favorable land leases and loans.

Since a city-wide referendum in 2011 aimed at making one-third of Zurich's housing cooperative-owned by 2050, the cooperative model has gained momentum. Cooperatives now receive priority access to land, low-interest loans, and favorable planning treatment, often resulting in architecturally and ecologically distinguished developments. Some cooperatives even allow the city to purchase shares to offer affordable housing to homeless individuals.

Each cooperative operates democratically, with residents holding a single vote in decision-making processes. While this model fosters community engagement and shared responsibility, it also presents challenges in management and requires a commitment of time that may not be familiar to all citizens. Additionally, financial viability can be threatened by rising construction costs and the need for building improvements.

Despite critiques that some cooperatives cater to wealthier renters, the model remains a more affordable alternative than traditional landlord-based systems. The article suggests that similar cooperative housing models could be explored in the UK and elsewhere in Europe, especially given the current stagnation in social housing and increasing demand for affordable living options. The cooperative approach offers a glimpse into a sustainable and community-oriented alternative to the prevailing housing crisis.