Context and Publication Details
This policy brief titled "Social Housing: A Key Part of Past and Future Housing Policy" was published by the OECD (Organisation for Economic Co-operation and Development) and focuses on the essential role of social housing in the broader context of social welfare and affordable housing provision. It was created in response to the escalating challenges of housing affordability across OECD and non-OECD EU countries, particularly in light of rising housing prices, stagnant wages, and demographic changes. The brief is funded by the European Union Programme for Employment and Social Innovation “EaSI” (2014-2020).
Social Housing Overview
Social housing comprises over 28 million dwellings, accounting for approximately 6% of the total housing stock in OECD and non-OECD EU countries. Significant variations exist between countries regarding how social housing is defined, its scope, target populations, and types of providers. For instance, in countries like Austria, Denmark, and the Netherlands, social rental housing constitutes over 20% of the total stock, showcasing a robust "third sector" in the housing market. Conversely, in most OECD and EU countries, social housing comprises less than 10% of the total stock, indicating a trend of shrinking social housing sectors.
Challenges Facing Social Housing
The document highlights the increasing concentration of lower-income and vulnerable tenants within social housing, which poses challenges to the sector's economic sustainability. In recent years, the size of the social housing sector has diminished in most countries, with a notable decrease in absolute numbers in a few cases. This decline is attributed to reduced public investment in housing. The COVID-19 pandemic further exacerbated existing housing affordability gaps, emphasizing the urgency for increased investments in social housing construction and renovation as part of a sustainable economic recovery strategy.
Key Data and Trends
Between 2005 and 2019, real house prices rose in 31 OECD countries, while rent prices increased in virtually all but two. Over one-third of low-income renters across the OECD spend more than 40% of their disposable income on housing, categorizing them as overburdened by housing costs. The pandemic has spotlighted the vulnerabilities faced by low-income and vulnerable households, prompting many governments to implement emergency housing support measures, including eviction bans and temporary rent suspensions.
Future Directions for Social Housing
The brief emphasizes the importance of social housing in providing affordable living conditions for those unable to access the private market. Policymakers are urged to consider social housing as a vital component of the economic recovery process post-COVID-19, supported by initiatives like the EU's "Renovation Wave" aimed at improving housing quality and energy efficiency. This strategy not only seeks to address housing needs but also aligns with broader environmental sustainability goals.
Conclusion
As Europe navigates the post-pandemic landscape, the role of social housing in fostering inclusive communities and combating homelessness is critical. The emphasis on sustainable housing solutions is essential for ensuring that vulnerable populations have access to safe, affordable homes, thereby promoting social stability and economic resilience across the continent.