European cities seek ways of boosting affordable housing

In Europe's most populous city, Berlin, the housing market has become so competitive that residents are considering a historic experiment. After voting in a referendum five years ago to require the Senate to draft a law expropriating properties owned by large real estate companies, the Senate did not act. However, the socialist Left Party, which campaigned on this issue, recently won the largest share of the vote in Berlin's elections. It remains to be seen whether the party can fulfill its promises.

The severity of the housing crisis is evident across Europe. In Vienna, the city owns approximately 220,000 municipal apartments and 200,000 subsidized dwellings, housing over 60% of its residents. This model has helped stabilize the city's housing market and keep prices on the private market in check. Other European cities are exploring similar solutions.

In Basel, about 40% of cooperative housing units are built on public land. Barcelona and Lisbon have also adopted this model. In Paris, the French capital has a first right of refusal in gentrifying neighborhoods to ensure 30% of housing is affordable by 2035. The government and regional authorities have identified 61 projects to convert empty office buildings into housing, creating up to 8,200 homes.

In Prague, the Czech capital has built 660 new energy-efficient apartments for public-sector employees, keeping rents 20% below market rates. In Dublin, the Irish capital has introduced a Cost Rental Housing program for those earning between €66,000 and €75,000 annually. Non-profits or public agencies lease out apartments at below-market rates, with an average of almost 30% reduction.

Cities across Europe are finding innovative ways to address the housing crisis, from expropriation and public land leasing to targeted programs for public-sector employees and low-income households.