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

The article titled "What the world can learn from Uruguay as the global housing crisis deepens," published by The Conversation and authored by Jennifer Duyne Barenstein, addresses the critical issue of inadequate and affordable housing that affects over 1.8 billion people globally. With many countries failing to take significant action, the piece explores cooperative housing as a potential solution to the housing crisis, particularly through the successful model established in Uruguay.

Cooperative housing involves residents collectively owning and managing their apartment complexes, sharing responsibilities and costs through a democratic process. While countries like Switzerland have embraced this model, others in Latin America, such as El Salvador and Colombia, have struggled due to weak political support. Uruguay stands out with a well-established network of housing cooperatives that provide permanent, affordable housing across various income levels.

Uruguay's cooperative housing movement began in the 1960s amid economic turmoil. Early pilot projects funded by government resources and international loans proved to be cost-effective and of higher quality than conventional housing. This success led to the National Housing Law of 1968, which recognized cooperatives and established a legal framework to support them.

The two primary cooperative models in Uruguay are savings cooperatives and mutual aid cooperatives. In the savings model, members pool their savings to invest in housing, gaining access to government-subsidized mortgages. In contrast, the mutual aid model allows households without savings to participate by contributing labor to construction projects. Both models maintain collective ownership of land and housing, ensuring long-term security and affordability, especially for low-income families.

Currently, Uruguay has 2,197 housing cooperatives serving about 5% of its households, with significant concentration in Montevideo. The state's recognition of the importance of public support for cooperatives has been vital for their growth. The National Housing Law outlines the rights of cooperatives and the obligations of the state, including overseeing operations and providing financial assistance.

Housing cooperatives have evolved to address changing societal needs, particularly in Montevideo's historic center, where revitalization efforts have occurred without displacing low-income residents. An example is the Mujeres Jefas de Familia (MUJEFA) cooperative, founded by single mothers to create homes tailored to their needs. This model not only provides housing but also empowers women to participate in urban planning and construction.

The COVIVEMA 5 cooperative, Uruguay's first high-rise mutual aid housing project, exemplifies adaptability and innovation in cooperative housing. Completed in 2015, it involved community participation in construction, with members receiving training in vertical construction and safety protocols. Such initiatives demonstrate cooperative housing's potential as a sustainable alternative to traditional housing models, blending community involvement with efficient land use.

In conclusion, the cooperative housing model in Uruguay offers valuable lessons for addressing the global housing crisis, emphasizing collective ownership, state support, and community empowerment as key components of sustainable housing solutions.