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

This resource titled "To what extent can housing as a social right be realized in contemporary housing markets?" is published by the Progressive Politics Research Network and authored by Lindsay B. Flynn and Giuseppe Montalbano. It is a research brief that explores the dual role of housing as both a fundamental right and a financial asset, highlighting the tensions and challenges that arise in contemporary housing markets across Europe.

Housing serves as both a social right and an economic asset, leading to conflicting policies. The brief emphasizes that while social housing initiatives aim to promote housing as a right, deregulatory policies favor an asset-oriented approach. Since the early 21st century, the alignment has increasingly favored the asset model, although signs of a shift towards recognizing housing as a social right are emerging.

The brief outlines the significant transformations in European housing markets, noting that since the early 2000s, housing has been primarily treated as a financial asset. Policies have often incentivized homeownership and deregulated rental markets, leading to reduced social housing provisions. The 2008 financial crisis did not substantially alter this trajectory; instead, it reinforced the asset-focused approach, with a rise in buy-to-let markets and institutional investments in housing.

The report highlights that housing prices in Europe have increased by an average of 53% from 2015 to 2024, exacerbating affordability issues. Although the overall unaffordability is not universal, it disproportionately affects low-income households and younger individuals. These groups face significant challenges in acquiring homeownership, pushing them towards precarious rental markets.

The brief discusses how the dual nature of housing can polarize political sentiments. While homeownership has historically been linked with conservative politics, recent trends indicate potential shifts where younger renters and owners may unite over shared affordability concerns, calling for more redistributive policies. This changing landscape complicates the traditional political alignments associated with housing issues.

To secure housing as a social right, policymakers must navigate the inherent tensions between market-driven provisions and social objectives. The brief suggests that immediate measures like rental subsidies and market regulations can help control price growth, while long-term strategies should focus on increasing the supply of affordable housing. A balanced approach may involve combining social housing provisions with private market solutions.

The authors propose that leveraging the current political salience of housing can create opportunities for progressive reforms. By strategically framing housing challenges and solutions, policymakers can foster broader support across various segments of society. This approach may help in building a coalition for transformative changes in housing policy, moving towards a model that prioritizes housing as a social right. In conclusion, the brief illustrates the complexities of contemporary housing markets in Europe, emphasizing the need for balanced and innovative policies to address the dual roles of housing. It provides a framework for understanding potential pathways for realizing housing as a social right, amidst the challenges and opportunities presented by current market dynamics.