How Collaborative Housing can respond to the European housing challenge

The resource titled "How Collaborative Housing can respond to the European housing challenge" is published by the European Alliance for Collaborative Housing. It addresses the pressing issue of affordable housing in Europe, highlighting the significant increase in housing costs and the growing number of individuals struggling to afford homes. Between 2010 and 2025, house prices in the EU rose by 60.5%, while rents increased by 28.8%, outpacing income growth in most countries. At least 100 million people in Europe allocate over 40% of their disposable income to housing, and homelessness continues to rise.

Collaborative Housing offers a solution that moves beyond traditional state and market approaches. It encompasses not-for-profit, community-led housing models that have successfully provided long-term affordable housing while fostering environmentally sustainable and socially cohesive neighborhoods. The document emphasizes the need for a diversified housing system to tackle the crisis effectively, as the current market dynamics are excluding many individuals from homeownership and affordable rental options.

Collaborative Housing is characterized by collective initiation, development, ownership, management, and control by residents, often supported by local and national governments. This model is driven by the needs of the community and governed by participatory and democratic institutions. Unlike profit-driven housing developments, Collaborative Housing ensures that financial resources are reinvested within the community, maintaining affordability for future generations.

Two prominent forms of Collaborative Housing in Europe are Community Land Trusts (CLTs) and right-to-use Housing Cooperatives. CLTs are democratic non-profit organizations that acquire land, detaching it from homes to ensure lasting affordability. Currently, over 600 CLTs across Europe provide affordable homes for low- and middle-income families, with notable examples in Brussels, Amsterdam, and London. On the other hand, right-to-use Housing Cooperatives allow residents to collectively manage their living environments, offering long-term affordable housing by operating on a non-profit basis.

To promote Collaborative Housing, the document outlines several policy recommendations for European policymakers. These include recognizing and supporting Collaborative Housing within EU policy frameworks, providing equitable access to public funding and tax benefits, and removing obstacles to funding access for collective ownership models.

The resource also highlights successful examples of Collaborative Housing in various cities, including Vienna, Barcelona, and Brussels. These municipalities provide favorable financial schemes, such as direct subsidies and discounted public land leases, to foster the growth of Collaborative Housing initiatives.

Collaborative Housing not only ensures long-term affordability but also promotes social cohesion and environmental sustainability. It encourages mixed-income communities, often prioritizing vulnerable groups, and contributes to local economies by keeping ownership structures community-based.

As the housing crisis becomes increasingly severe, Collaborative Housing presents a viable solution that prioritizes community needs over profit. The EU's Affordable Housing Plan represents a significant opportunity to diversify housing models, enabling communities to define and meet their housing aspirations while fostering sustainable urban development. The document serves as a call to action for policymakers to recognize and support Collaborative Housing as a legitimate and effective approach in addressing Europe’s housing challenges, ensuring that the benefits extend to future generations.