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

The article from The Guardian, authored by Peter Apps, discusses the innovative housing cooperatives in Zurich, Switzerland, as a potential solution to the housing crisis facing many European cities. The piece explores how these cooperatives foster community living while providing affordable housing options, contrasting sharply with the prevailing housing market trends in cities like London.

Zurich’s Mehr als Wohnen cooperative exemplifies a unique approach to urban living. Comprising 13 blocks of apartments, this cooperative is owned by its residents who hold shares in the organization, eliminating the need for landlords and speculative property developers. This model effectively prevents soaring housing prices and evictions, creating a stable environment for families, working-class individuals, and ethnic minorities, who are often marginalized in urban developments.

One in five citizens in Zurich lives in a cooperative, enabling access to affordable housing in a city known for its financial prowess. Members invest between 7,000 and 25,000 Swiss francs (approximately £6,500 to £23,500) for a share, subsequently paying a “cost rent” that covers property maintenance and debt repayment. This structure supports diverse communities, allowing families and students to thrive in the city center.

The Swiss cooperative housing movement dates back to the late 19th century, with the first cooperative established in Zurich in 1907. Initially formed through workers’ movements pooling resources to secure housing, the movement has evolved significantly. Following World War II, government support facilitated growth, leading to a renaissance in cooperative housing after a 2011 referendum set ambitious targets for cooperative ownership in the city.

In recent years, Zurich’s cooperatives have benefited from priority access to land, low-interest loans, and favorable zoning regulations, often collaborating with renowned architects to create exemplary housing. However, challenges remain. Rising construction costs and increasing demand for housing have led to accusations that some cooperatives cater to wealthier renters, potentially driving gentrification.

The article raises the question of whether the cooperative model could be successfully implemented in the UK and other European countries facing housing crises. While the UK has a history of thriving cooperatives, council housing previously provided a more accessible option, resulting in less interest in cooperatives. However, with social housing stagnating and demand surging, the cooperative approach offers a viable alternative that merits exploration.

Peter Apps’ article highlights the transformative potential of Zurich’s housing cooperatives, showcasing a model that prioritizes community, affordability, and sustainability. As cities across Europe grapple with housing shortages, the cooperative model provides valuable insights into alternative solutions that could foster inclusive urban environments.