The Social Housing Comeback? Explaining its Decline and the Political Barriers to its Revival

The research brief titled "The Social Housing Comeback? Explaining its Decline and the Political Barriers to its Revival" is published by the Progressive Politics Research Network. Authored by Martin Vinaes Larsen, this document examines the significant decline of social housing in Europe over the past four decades. It highlights the vital role social housing has played in offering affordable homes to low- and middle-income residents, and the political dynamics that have led to its reduction.

Social housing has suffered a dramatic decline, particularly attributed to shifts within mainstream social democratic parties. Once advocates for social housing, these parties began to withdraw their support from the 1990s onward as their voter bases became more affluent and less connected to marginalized groups living in social housing. The resulting political realignment dismantled the coalition that had previously supported investments in inclusive housing.

Housing costs in major European cities have surged, with a notable 50% increase between 2015 and 2023. This rise has created an affordability crisis affecting even the upper middle class, limiting their access to urban centers. The growing concern is that cities risk becoming exclusive enclaves for the wealthy, prompting renewed debates on the importance of social housing for ensuring social mixing and protecting the "right to the city" for lower-income residents.

Despite the re-emergence of social housing in political discussions, significant obstacles remain. Four key challenges are identified: anti-immigrant sentiment, stricter means testing, high construction and land costs, and local resistance to density in housing development. Addressing these challenges requires center-left parties to reinvest political capital in social housing as part of a broader strategy to increase overall housing supply.

Historically, social housing was integral to the urban landscape of Europe, especially in the post-World War II era when large quantities of affordable rental housing were constructed for a diverse population. However, since the 1980s, the pace of social housing construction has slowed considerably, influenced by factors such as restrictive funding models and neoliberal policies that shifted the focus from universal access to targeted benefits.

The brief underscores that the retreat from social housing cannot be solely attributed to right-wing parties but significantly involves the actions of social democratic parties themselves. Their diminishing focus on social housing has left a political vacuum, as no major party has stepped in to champion this cause. The decline has been exacerbated by a changing demographic among social housing residents, who have become increasingly marginalized and disconnected from traditional social democratic voters.

The affordability crisis has sparked renewed interest in social housing among a broader middle class, indicating potential for a revived agenda. However, any new push will need to navigate the aforementioned obstacles, including the complicated relationship between social housing and immigration narratives, as well as local opposition to new developments. The brief suggests that effective solutions may involve integrating new social housing with an expansion of market-rate housing to serve a wider audience.

In conclusion, while the conditions that led to the decline of social housing have evolved, the combination of rising housing costs and shifting urban political dynamics provides an opportunity for a more inclusive social housing policy. For this to succeed, the center-left must directly address the emerging challenges and demonstrate that social housing can benefit a broader demographic, moving beyond a narrow safety net to a universal good.