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 is published by the Progressive Politics Research Network and authored by Lindsay B. Flynn and Giuseppe Montalbano. It addresses the complex dynamics of housing as both a fundamental right and a financial asset in contemporary European housing markets. The brief underscores the tensions between the two approaches and explores potential pathways to achieve housing as a social right.

Housing serves a dual role: it is a fundamental right for all, as recognized in European and international law, and a financial asset for some. The tension between these roles complicates policymaking. While policies promoting social housing advance a social rights approach, deregulatory measures reinforce the notion of housing as an investment. Since the turn of the 21st century, policies have increasingly leaned towards the asset approach, although there are signs of a potential shift back toward recognizing housing as a social right.

At the beginning of the 21st century, housing was increasingly treated as an investment. Policies incentivized homeownership and deregulated rental markets, while reducing social housing provisions. The rise of investment vehicles and foreign investments in housing markets, particularly in major European cities, further entrenched this asset-based approach. In the years following the 2008 financial crisis, countries like Spain and Ireland tightened mortgage lending, but overall, a significant shift away from the asset approach did not occur.

By the late 2010s, several European countries began implementing policies aimed at increasing affordable housing and reorienting rental market regulations toward tenant benefits. Case studies from Spain, Germany, and the Netherlands reveal that while the housing-as-asset approach was consolidated in the decade post-crisis, a noticeable shift toward a housing-as-social-right approach began to emerge. However, this was often a hybrid approach, balancing the demands of various stakeholders, including landlords and the real estate industry.

Contemporary housing policies have led to increased unaffordability and a greater reliance on the private rental market, contributing to economic inequality. Eurostat reports that housing prices across Europe rose by an average of 53% from 2015 to 2024. Although affordability issues are becoming increasingly concentrated among disadvantaged social groups, they are not generalized across the entire population. Homeownership rates have declined, particularly among low-income households and younger individuals, exacerbating their reliance on precarious rental markets.

Policymakers face structural tensions when addressing housing as a social right. Short-term tools like rental subsidies can help mitigate rising prices, while long-term solutions are necessary to increase the availability of affordable homes. The brief suggests that state-led social housing embodies the housing-as-social-right approach more effectively than private initiatives. Incremental reforms may expand access to affordable housing but could further entrench market dynamics.

The brief advocates for a strategic coupling of the problems, politics, and policy streams to create a favorable environment for reform. By framing the narrative around housing affordability and the public perception that housing is too expensive, political actors can build support for meaningful policy changes. This approach recognizes that while some segments benefit from the status quo, others do not, and emphasizes the need for multiple affordable housing pathways that cater to diverse populations.