What the world can learn from Uruguay as the global housing crisis deepens

As the global housing crisis deepens, more than 1.8 billion people are without adequate and affordable housing. In this context, Jennifer Duyne Barenstein, writing for The Conversation, explores how cooperative housing models, particularly those in Uruguay, can offer sustainable solutions to this pressing issue.

Cooperative housing involves residents collectively owning and managing their apartment complexes. This model fosters shared responsibilities, costs, and decision-making through a democratic process. Countries like Switzerland have embraced cooperative housing, with about one-fifth of Zurich’s housing stock being cooperative. However, many countries in Latin America have struggled to integrate such models into their existing housing policies, often due to inadequate political support. Uruguay stands out as a positive example, boasting a well-established network of housing cooperatives that cater to various income levels.

Housing cooperatives in Uruguay emerged during the economic turmoil of the 1960s. Initial pilot projects proved successful, leading to the National Housing Law in 1968, which legally recognized cooperatives and provided a supportive framework. The most prevalent cooperative models include "savings cooperatives," where members pool savings to access government-subsidized mortgages, and "mutual aid cooperatives," which enable households without savings to contribute labor toward construction.

Both cooperative models emphasize collective ownership, ensuring that land and housing units are permanently removed from the private market. Members typically contribute monthly fees to cover loan repayments and maintenance, securing long-term housing stability. Today, Uruguay has approximately 2,197 housing cooperatives, providing homes for about 5% of its households, mainly in Montevideo.

The success of Uruguay's cooperative housing model is significantly attributed to state support and the presence of cooperative federations. The National Housing Law defines the rights and responsibilities of cooperatives and outlines state obligations, such as overseeing operations and providing land access. Federations like FECOVI and FUCVAM play crucial roles in organizing cooperatives, advocating for housing rights, and offering training and legal support.

Uruguay's housing cooperatives have evolved to meet changing urban demands. Initially focused on low-density development, many cooperatives have adapted to urban challenges by creating housing in historically abandoned areas, such as Montevideo's Ciudad Vieja. The Mujeres Jefas de Familia (MUJEFA) cooperative exemplifies this, focusing on the unique needs of low-income, single mothers.

COVIVEMA 5, completed in 2015, represents Uruguay’s first high-rise mutual aid cooperative. The project involved community participation in construction, with specialized training provided to members. This model reflects a shift in cooperative housing towards more efficient land use and addresses the need for sustainable urban living.

Housing cooperatives in Uruguay exemplify a viable alternative to public and private housing by offering residents ownership stakes and long-term security. However, their success hinges on ongoing institutional, technical, and financial support, making them an insightful model for sustainable housing solutions in Europe and beyond.