The demand for housing cooperatives in the Netherlands

The document titled "The demand for housing cooperatives in the Netherlands" is a master's thesis authored by Ewoud P.G. Kooijman and published by Eindhoven University of Technology. This explorative study investigates the market demand for housing cooperatives in the Netherlands and highlights the underlying preferences for various forms of housing tenure.

The Netherlands faces a significant housing crisis, with a need for 900,000 additional dwellings by 2030, of which 300,000 must be affordable. The introduction of housing cooperatives is proposed as a potential solution, as they can guarantee long-term affordability by preventing the sale of properties. Currently, housing cooperatives comprise only 0.025% of the housing stock in the Netherlands, in stark contrast to countries like Germany and Sweden, where they make up a much larger portion.

The study aims to fill the gap in empirical research on the demand for housing cooperatives, as previous investigations have primarily focused on barriers to their establishment. Kooijman conducted a stated choice experiment with 1,404 participants, ultimately yielding a usable dataset of 945 respondents after data cleaning. The research identifies preferences for different housing tenures, including owner-occupied, social rental, and private rental.

The results indicate that monthly costs are the most significant factor influencing housing tenure choice, with a strong preference for lower monthly costs. The study identified two classes of respondents: Class one shows a preference for traditional owner-occupied housing, while Class two, comprising younger individuals largely between 18 and 35 years old, indicates a preference for housing cooperatives. Notably, 48% of respondents may favor housing cooperatives due to their affordability and absence of annual cost increases.

The findings suggest that housing cooperatives could address the growing demand for affordable housing in the Netherlands. The study recommends that government policies should facilitate the establishment of housing cooperatives by providing clear guidelines and strategies for land use. Furthermore, financial institutions should ease mortgage processes for cooperatives to promote their growth.

Kooijman's thesis contributes valuable insights into the potential of housing cooperatives as a sustainable housing alternative in the Netherlands. The research underscores the need for a diverse range of housing tenures to accommodate various demographic groups and alleviate the ongoing housing crisis.