The Ro­le of Coo­pe­ra­ti­ves in the Pro­vi­sion of Af­for­da­ble Hou­sing: an in­tro­duc­to­ry over­view

The document titled "The Role of Cooperatives in the Provision of Affordable Housing: an introductory overview" was authored by Daniela Sanjinés, a doctoral candidate at ETH Zurich, and Jennifer Duyne Barenstein, a social anthropologist and senior researcher at the same institution. It explores the significance of housing cooperatives as a model for affordable housing solutions across various contexts.

Housing cooperatives are defined as a mutually owned and democratically controlled housing model, where members pool resources to reduce individual costs. The International Cooperative Alliance outlines seven principles guiding cooperatives: voluntary membership, democratic control, economic participation, autonomy, education, cooperation among cooperatives, and community concern. The application of these principles varies based on historical, cultural, and political factors, particularly the state’s role in regulating cooperatives.

There are several models of housing cooperatives, categorized as tenure, building, and finance cooperatives, each with distinct objectives. Tenure cooperatives focus on collective ownership and management, while building cooperatives emphasize land development and housing construction. Financial cooperatives provide loans to members for housing purposes. Across the globe, cooperatives manifest in various forms: rental, limited equity, and market value, often adapting to urban settings where they influence neighborhood development.

The housing cooperative movement in Europe began in the mid-19th century, inspired by social reformers like Robert Owen and Victor Aimé Huber. Initially a response to poor housing conditions during industrialization, cooperatives grew in prominence, especially post-World Wars, with 27 million Europeans currently living in such arrangements.

The role of cooperatives varies significantly by country. In the UK, despite its historical origins, cooperatives have a minor role due to policies favoring public housing and home ownership. In Germany, cooperatives expanded post-World War II, supported by government funding, but faced challenges in the late 1990s. Sweden, however, has a robust cooperative system, making up 22% of its housing stock, while Switzerland boasts over 160,000 cooperative apartments, accounting for nearly 60% of its non-profit rental sector.

Globally, cooperatives have unique trajectories. In the US, they emerged primarily in urban areas, with federal support peaking in the mid-20th century but declining thereafter. India’s cooperatives began under colonial rule and expanded post-independence, while in Latin America, especially Uruguay, they arose from grassroots movements. In Africa, cooperatives have played a critical role in addressing housing needs, particularly in Egypt and Kenya.

Housing cooperatives are vital in providing affordable housing and promoting sustainable urban development. They offer lower-cost housing options, foster social cohesion, and engage in community initiatives. Successful cooperatives require supportive policies from various government levels, including tax exemptions and subsidized loans. With the right conditions, they can significantly contribute to addressing the global housing crisis affecting approximately one billion people.