European cities seek ways of boosting affordable housing

European cities are grappling with the challenge of providing affordable housing, with pressure on housing markets becoming increasingly severe. In Berlin, a referendum five years ago called for the expropriation of large real estate companies owning over 3,000 units, a proposal that has gained traction following the socialist Left Party's electoral victory.

The city has a long-standing model of social housing, with over 60% of its residents living in municipally-owned or subsidized apartments, which helps stabilize private market prices.

Vienna's approach serves as a model, with the city owning and renting out approximately 220,000 municipal apartments and subsidizing an additional 200,000 units. To address rising rents, some cities are exploring alternative methods of decoupling rents from land prices. Leasing municipal land to cooperatives or socially-conscious investors can reduce construction costs and prevent tenants from bearing excessive land costs. Basel, Switzerland, and cities like Barcelona and Lisbon, Spain, have experimented with this model.

In Paris, an anti-displacement plan was introduced in 2014, granting the municipality first refusal in gentrifying neighborhoods to ensure a portion of affordable housing remains. The French government and Paris authorities have identified projects to convert empty office buildings into housing, aiming to create up to 8,200 homes.

In Prague, the Czech capital has built 660 energy-efficient apartments specifically for public-sector employees, keeping rents 20% below market rates. In Dublin, Ireland, where rents have skyrocketed due to foreign investment and favorable tax rates for tech companies, a Cost Rental Housing program provides affordable housing to middle-income households. The Irish government aims to deliver 18,000 low-cost rental homes by the end of the decade.