Housing Cooperatives in Europe - Resilience and Adaption to Changing Need

“Housing Cooperatives in Europe – Resilience and Adaptation to Changing Needs” is a report published by Housing Europe and authored by Vanesa Valiño. It compiles inputs from Housing Europe members and partners across 12 European countries to update the picture first presented in Housing Europe’s 2012 publication on cooperative housing models, and to explain how cooperative and community-led housing is responding to today’s affordability and sustainability challenges.

The report describes housing cooperatives as democratic, non-speculative housing providers built on the principle of “one person, one vote”. Originating in Europe in the mid-19th century, cooperatives have historically delivered good-quality housing at cost-based prices, and the report links the renewed interest in the model to a persistent housing affordability crisis affecting low- and middle-income households, alongside concerns about climate change, isolation, and the search for more socially and ecologically sustainable ways of living.

Across the EU and EFTA, the report estimates at least 7.9 million cooperative housing units. It documents large national cooperative sectors such as Germany (about 2,000 cooperatives, 2.8 million members, and 2.2 million dwellings), Austria (97 cooperatives managing about 460,000 homes), Sweden (over 1.1 million cooperative homes), Norway (around 370,000 cooperative dwellings, about 13.7% of the housing stock), and Switzerland (around 180,000 rental cooperative units, with roughly 20% of Zurich’s housing stock cooperative). The report also outlines how cooperative housing can be “hidden” in statistics depending on whether it is counted under rental or owner-occupied categories.

A recurring theme is the financial squeeze on cooperative delivery caused by higher interest rates and construction costs. In Austria, the report notes the ECB rate for refinancing operations rising from 0% (July 2022) to 4.5% (September 2023), affecting projects where bank finance can represent roughly 50% of development costs. It also notes construction price inflation of more than 20% since 2020 in Austria, and how cost-based rent limits or loan covenants can make new-build pipelines harder to sustain.

The report frames climate action as a central challenge for cooperatives, particularly for existing stock. One example highlighted is the limited-profit/cooperative sector in Austria, where 37% of homes still rely on fossil energy sources (mainly gas) and where the sector’s ambition is to replace fossil-based heating with district heating, heat pumps, or other renewable sources by 2040. The report also emphasizes reuse of buildings and infrastructure as a way to limit sprawl and support town centres, linking renovation and decarbonisation to the need for adequate public funding.

Beyond long-established cooperatives, the report highlights emerging cooperative and community-led models after the 2007–2008 financial crisis. It presents “right of use” cooperatives in Barcelona/Catalonia, supported by municipal land leases (e.g., 75-year leases) and governance and affordability rules aligned with social housing criteria. It also describes Community Land Trust Brussels as a democratic, community-led model delivering permanently affordable homes for low-income households through shared-equity ownership with resale controls, backed by regional funding (including a €3 million investment budget in 2023 to buy land).

Across countries, the report identifies a need for coordinated support to scale cooperative and non-speculative housing: better recognition of cooperative and third-sector housing, access to low-interest long-term finance and guarantees (including potential roles for the European Investment Bank), and targeted mechanisms to fund decarbonisation and energy-efficient renovation without displacing low-income residents. It positions cooperative housing as a cross-cutting tool for affordability, sustainability, and community resilience in European housing systems.