The richest European countries have more social housing

The richest European countries have more social housing

This report is published by Tomorrow.Building World Congress, which focuses on innovative solutions and discussions related to housing challenges across Europe. The document highlights the pressing issue of housing accessibility in Europe, particularly for young people, amid rising rental costs.

Housing has emerged as a significant problem in Europe, where average salaries often fail to meet increasing rental prices. Over the past decade, housing prices have surged by an average of 48%, driven by rising production costs and increased mortgage rates. Rental prices have also seen an 18% increase between 2010 and 2022, fueled by the growth of short-term rental contracts. Moreover, a decline in housing construction has exacerbated the issue, creating a scenario of excessive demand and insufficient supply.

To tackle the housing accessibility issue, several European countries have adopted measures such as homebuying assistance, social housing programs, and rental price regulations. The European Commission has initiated the European Affordable Housing Initiative to address this pressing concern.

The Netherlands boasts the highest percentage of social housing in Europe at 30%. This achievement stems from city councils acquiring land for urban development and outsourcing housing management to non-profit entities. With over 280 organizations managing approximately 2.3 million properties, access to these homes requires meeting specific income criteria. However, the waiting list can extend up to 10 years.

In Switzerland, 57.8% of the population rents, with 8% of real estate owned by housing cooperatives. With more than 1,500 cooperatives managing over 160,000 homes, this model allows residents to become shareholders, offering rental prices that are, on average, 20% lower than market rates. Cooperative housing plays a crucial role in cities like Zurich, where non-profit cooperatives manage 25% of the housing stock.

Austria designates 24% of its housing stock for social housing, with Vienna managing 50% of all homes. Since the 1920s, Vienna has developed social housing funded by tax revenues. Approximately half of Vienna's population resides in social or subsidized housing, with the city allocating over €400 million annually to support these initiatives.

Norway shows a unique approach, with around 80% of the population owning homes. The Cooperative Housing Federation represents associations that manage 23% of the housing stock. Municipal housing is available for those unable to access other housing types, with specific income requirements.

Denmark has over half a million public housing units, constituting 20% of the total housing stock. Most units were constructed between 1950 and 1980, particularly in the Copenhagen region. Public housing operates under a rental system without income restrictions, although many residents receive government assistance.

Spain ranks 18th in social housing with only 2.5% of its stock dedicated to this sector. A lack of protected housing construction since 2013 has contributed to this low percentage. Countries like Romania, Estonia, Croatia, and Portugal have even lower social housing percentages, facing challenges such as high homeownership rates and rising property prices.

The Tomorrow.Building World Congress aims to address new construction methods and smart city developments to make housing more affordable. The report emphasizes the importance of increasing housing construction to meet the growing population's needs across Europe.