Public, cooperative, and social housing supports a wide range of people. It is designed to provide affordable homes for working families, essential workers, such as teachers, policemen, supermarket staff, but also the youth, the elderly, people with disabilities, migrants, and the homeless who are priced out of the private rental market. In fact, social housing helps ensure that a larger portion of society has access to secure, decent homes.

Public, cooperative, and social housing often outperforms private housing in quality, sustainability, and energy efficiency. In France, 46% of social housing is in the top energy categories, compared to 25% of the overall housing stock. In the Netherlands, over 50% of social housing has an A or B energy performance certificate (EPC) rating, surpassing private rentals. Even in regions with lower performance, like Wallonia in Belgium, social housing has seen significant improvements, showing it leads to sustainable, well-built homes.

Social and affordable housing providers promote diverse, mixed communities. In Finland, for instance, for decades, social housing developments have been designed to integrate tenants and residents with various income levels, fostering social cohesion and preventing the isolation seen in lower-income areas. However, the sector faces challenges, including rising construction costs, funding pressures, and the NIMBY (Not In My Backyard) attitude, which can hinder the development of new public, cooperative, and social housing projects.

Public, cooperative, and social housing is an investment. Affordable, stable homes cut long-term spending on emergency housing, healthcare, and social services. In the EU, eliminating housing inadequacy could pay off within 18 months through savings in healthcare and better social outcomes. In Belgium, access to social housing reduces poverty risk by 40%, and in Estonia, state-backed renovation has been budget-neutral for 10 years due to increased tax revenue. Social housing supports economic growth, helps people live closer to jobs, and drives sustainable urban development. In the long run, it saves public money and improves societal well-being.

The reality is that Europe faces a serious housing shortage, especially when it comes to affordable homes. Many people, including those with stable jobs, cannot find decent, reasonably priced housing near their workplaces, schools, and essential services. In France, for instance, there is a waiting list of 2 million households seeking social housing, while in Belgium, the wait can take up to 12 years. The crisis is not just about availability but affordability and suitability for people’s needs.

Despite rising interest rates, Eurostat reported increases in house prices in both Q2 and Q3 of 2023, along with further rent hikes. Residential property prices in the EU were 50% higher in Q3 2023 compared to early 2010, while rents rose by 23%, with some countries experiencing increases over 100%. New economic and social realities have pushed many who traditionally did not rely on publicly supported housing into the market, where they now face challenges. Housing Europe estimates that, as of 2022, 9.6 million full-time workers aged 25-34 still lived with their parents—equating to one in five individuals in that age group across the EU.