The richest European countries have more social housing
Context and Publisher
This article was published by Tomorrow.Building World Congress, focusing on the critical issue of housing in Europe. As housing prices soar, particularly for young individuals, many countries have prioritized access to affordable housing. The data presented in this article highlights the significant rise in housing costs, with a 48% increase over the past decade, driven by escalating production costs and higher mortgage rates. Between 2010 and 2022, rental prices climbed by 18%, exacerbated by the prevalence of short-term rental contracts, while housing construction rates have dwindled, leading to a mismatch between demand and supply.
Social Housing Overview
European nations are taking various measures to address housing accessibility, including social housing programs, rental price regulations, and the European Affordable Housing Initiative launched by the European Commission. Countries with higher percentages of social housing typically operate under a rental system, with Norway being a notable exception where social housing is often based on ownership.
🇱 The Netherlands
The Netherlands leads Europe with 30% of housing designated as social. City councils have played a vital role by acquiring land for development and outsourcing management to non-profit Housing Associations. With over 280 organizations managing approximately 2.3 million properties, the system requires applicants to meet specific criteria, including Dutch citizenship and income thresholds. However, the waiting list for these properties can extend up to 10 years, with average home prices exceeding €5,000.
🇭 Switzerland
In Switzerland, 57.8% of the population rents, with 8% of real estate managed by housing cooperatives. This model, which dates back to the 19th century, is pivotal in cities like Zurich, where 25% of housing is cooperatively managed. Cooperative housing is typically priced 20% lower than market rates, and residents become shareholders, participating in cooperative management. The average price for housing can reach €12,000.
🇹 Austria
Austria has designated 24% of its housing stock as social, with Vienna exemplifying this commitment by managing 50% of homes through the city council. Since the 1920s, social housing development has been funded through taxes, leading to 220,000 city-managed homes. Applicants must be European citizens, reside in Vienna for at least two years, and meet income limits. The city allocates over €400 million annually to social housing, and rental contracts have shifted from indefinite to fixed terms due to a 1994 reform.
🇴 Norway
In Norway, approximately 80% of the population owns homes, facilitated by a robust cooperative housing sector that manages 23% of housing stock. The Cooperative Housing Federation represents numerous cooperative associations, allowing members to benefit from unique purchasing advantages. Municipal housing is available for low-income individuals, with specific income requirements for applicants.
🇰 Denmark
Denmark's public housing units comprise 20% of total housing, with a significant concentration in Copenhagen. The system requires a deposit of 2% of the purchase price and has no income restrictions, though most tenants have below-average incomes. Approximately 60% of public housing tenants pay under €669 monthly, with half receiving government assistance.
🇸 Spain
Spain ranks low at 2.5% social housing due to historical issues, including the loss of protected status and halted construction since 2013. The government aims to expand protected housing significantly, with specific income caps for applicants.
Conclusion
Addressing the housing crisis in Europe requires sustained efforts to increase affordable housing availability. The Tomorrow.Building World Congress will explore innovative construction methods in smart cities to make housing more accessible, emphasizing the need for sustainable solutions amidst rising housing costs. The data presented is accurate as of January 2025, reflecting the urgent need for action in the housing sector across Europe.