To what extent can housing as a social right be realized in contemporary housing markets?

To what extent can housing as a social right be realized in contemporary housing markets? This research brief, published by the Progressive Politics Research Network, authored by Lindsay B. Flynn and Giuseppe Montalbano, delves into the complexities of housing policies in Europe. The dual role of housing as both a fundamental right and a financial asset creates inherent tensions that complicate policymaking.

The brief outlines that housing is increasingly treated as an economic asset rather than a social right, particularly since the turn of the 21st century. Government policies have often incentivized homeownership and deregulated rental markets, leading to a reliance on private investment in housing. This shift has contributed to the growing unaffordability of housing, with prices rising significantly across Europe—averaging a 53% increase from 2015 to 2024.

The research identifies that renters, particularly those paying market rates, face greater affordability challenges compared to homeowners. While housing unaffordability is concentrated among certain disadvantaged groups, it is not a generalized issue affecting all demographics. Homeownership rates have been declining, especially among low-income households and young people, pushing them into precarious and costly rental markets. The concentration of housing wealth has been observed, particularly among higher-income households, which exacerbates economic inequality.

The tension between the housing-as-asset and housing-as-social-right approaches necessitates distinct policy measures. The former emphasizes market-driven solutions and private ownership, while the latter advocates for state-led interventions such as social housing provision and rental market regulations. The brief summarizes key findings from Spain, Germany, and the Netherlands, where housing policies have historically leaned towards asset accumulation but have recently shown signs of reform towards more equitable housing access.

In the late 2010s, these countries began implementing policies aimed at increasing affordable housing and regulating rental markets. While reforms have shifted towards recognizing housing as a social right, the existing frameworks often remain resilient, complicating the transition to more inclusive policies. Measures such as rent controls have been introduced, but they have met with resistance from landlords and the real estate industry, leading to trade-offs in policy effectiveness.

The brief discusses the complex political landscape surrounding housing issues, noting that the relationship between housing and political preferences is evolving. The dual nature of housing could polarize interests between homeowners and renters, but emerging trends indicate potential for collaboration across these groups. Policymakers are encouraged to leverage the current crisis narrative to push for reforms that align housing policies with social rights objectives.

The authors propose that policymakers pursue a dual strategy of short-term relief measures, such as rental subsidies, alongside long-term solutions aimed at increasing affordable housing supply. They emphasize the importance of creating a balanced housing policy that allows for various forms of tenure while ensuring access to homeownership for lower-income households. The integration of diverse housing pathways will be crucial in addressing the needs of an increasingly unequal society. In conclusion, this research brief sheds light on the intricate dynamics of housing policy in Europe, highlighting the need for a paradigm shift towards recognizing housing as a social right while navigating the challenges posed by market-driven approaches. The evolving landscape presents both obstacles and opportunities for achieving equitable housing access for all.