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

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

This research brief is published by the Progressive Politics Research Network, authored by Martin Vinaes Larsen, and focuses on the challenges and potential revival of social housing in Europe. It highlights the significant decline of social housing over the past forty years, despite its historical role in providing affordable housing for low- and middle-income residents.

Over the last four decades, social housing in Europe has sharply declined, often attributed to conservative and neoliberal reforms. However, the brief argues that mainstream social democratic parties played a pivotal role in this retreat. From the 1990s onward, these parties gradually reduced their support for social housing as their electorates became more affluent and disconnected from the marginalized populations that relied on social housing, resulting in diminished political mobilization for these groups.

The brief notes that housing costs across major European cities have risen dramatically, with a 50% increase between 2015 and 2023. This rise in costs has created an affordability crisis affecting even the upper middle class, restricting access to urban centers for lower-income residents. Consequently, social housing has resurfaced in political discussions as a means to ensure social integration and maintain the "right to the city."

Despite the renewed interest in social housing, four significant obstacles remain. First, anti-immigrant sentiments can complicate support for social housing, as many residents in such housing are immigrants. Second, restrictive means testing narrows the appeal of social housing as a broad-based policy tool. Third, high construction and land costs hinder the viability of new social housing projects, while local opposition to increased density presents further challenges.

Historically, social housing was integral to the post-World War II urban landscape, providing affordable homes for a wide range of socio-economic groups. However, since the 1980s, the pace of new social housing construction has slowed significantly across Europe. Analysts often cite restrictive funding models and local opposition as reasons for this decline, but the brief emphasizes that the shift away from social housing was largely driven by social democratic parties.

Research indicates that social democratic parties once actively promoted social housing but abandoned this commitment in the 1990s. With a changing demographic among social housing residents, the traditional electoral base of social democratic parties became less aligned with the needs of these communities. This shift broke the political coalition that had previously supported social housing investment.

With rising housing costs, there is a renewed opportunity for social housing to appeal to a broader middle class. Several European cities, including Paris and Copenhagen, have made housing a priority. However, addressing the aforementioned obstacles is crucial for the center-left to reinvest in social housing as part of a comprehensive housing supply strategy.

The brief concludes that while the conditions motivating mass social housing after World War II have changed, the current affordability crisis and evolving urban dynamics present an opening for a more inclusive social housing policy. The center-left must tackle the new challenges head-on to ensure social housing can again serve as a universal good, rather than merely a safety net, for all citizens.