Big crises call for bold ideas!
The housing crisis across our European continent keeps on getting worse, especially in cities. Every day, more people struggle to find or finance an affordable and suitable place to live. This is affecting citizens, companies, and our society alike. One of the great promises of the EU — being able to live and work in different places and even countries during our life — turns out to be more a theory than an actual opportunity for a growing majority.
As the worsening climate crisis is calling us to rethink how we build, live, and travel more sustainably anyway — it actually seems to be the right moment to tackle the housing crisis in a new, bold, and European way.
Dear Europeans, let’s team-up!
We live on a continent where we collectively have a great amount of financial resources available. We have countless existing buildings that could be revitalised or repurposed.
Across Europe, there are thousands of innovative companies that can and want to contribute to a green transition of the built environment. There is also a rapidly growing number of companies which have started to explore how they can help their (future) employees find affordable housing. Yet, the biggest opportunity for change is coming from the individual: There are presumably millions of citizens who are longing for a change of their housing situation in this very moment.
Now, the EU allows us to collaborate across borders like no other place on earth. So we started to imagine:
- What could we create if we get a lot of motivated citizens and purpose aligned companies across Europe to team up, tackling the housing crisis together?
- What could we achieve if we pool our minds, hearts and pockets - forming one pan-european cooperative organisation?
- What could happen if we manage to build a scalable, non-speculative housing system that would benefit all participating citizens and companies, but also the cities and our European Society as a whole?
The most impactful European housing company of the 21st century could be… ours!
Right now, the most influential housing companies on a European scale are stock listed corporates that treat and trade homes as an asset class. We’d like to imagine a different future:
Let’s co-create a European Housing Coop that will enable 1+ million (future) humans by 2080 to collaboratively own and use living spaces all across the EU - fostering a beautiful life, in community and within our planetary boundaries.
Before we dive into how this European Housing Coop could come alive and what it would actually do - let’s first unpack the current housing crisis in a bit more detail…
The problems around housing in the EU
The current housing market in the EU / Europe is in many ways not sustainable. Neither for humans, nor for the planet. Looking at the three common dimensions of sustainability, here are some facts…
The ecological perspective
- While the majority of actors in the orgareal estate industry have now “woken up” to the reality of climate change (82% of a 2022 survey consider ESG elements in their operational & investment decisions), the big transition to a circular & climate net zero approach is still ahead of us
- We increasingly take up more living space per person - across the EU, the amount of sqm per capita has more than doubled since 1960 - in Germany e.g. it has gone up from 19sqm to 47sqm in 2022
- At the same time, it’s estimated that 1 of 6 properties in Europe are vacant – equal to around 38 million empty homes
- For many decades, the real estate industry has practiced a way of tearing down buildings that were supposedly not suitable anymore, replacing them in resource consuming ways with again not future-proof ones in terms of energy efficiency, usage flexibility and material recyclability (~75% of our building stock is currently energy inefficient)
- Buildings and the construction industry are the world’s biggest consumer of raw materials - and in the EU, buildings are responsible for 36% of greenhouse gas emissions
The economic perspective
- Access to affordable and adequate housing is considered a human right. However, in the EU, housing has become unaffordable for many people, with over 80 million affected. Out of the ~450 million EU citizens, 1 out of 10 people spend more than 40% of their income on housing (>30% is commonly understood as being unaffordable). In some countries like Italy, that ratio is 3 out of 10.
- Financialisation of housing as an asset class, speculation on rising land values, increasing commerce with short-term rentals (#airbnb), and lack of creation or sale of affordable housing stock have all contributed to an accelerated housing crisis across the EU, particularly in cities.
- House prices have gone up by an average of 52% between 2010-2024 in the EU. In combination with the rise in interest rates starting in 2022, buying a house or apartment is becoming a less viable option for many.
The social perspective
- Humans generally have a longing for both, community and privacy - but most existing housing & apartments are not well designed and structured to cater to both. 35% of residents across the EU report a frequent feeling of loneliness in life (loneliness and weak social connections are associated with a reduction in lifespan similar to that caused by smoking 15 cigarettes a day)
- At the same time, solitary living arrangements are on an all-time high, about 40% across the EU live alone
- We can witness an increasing segregation in the EU, between generations & cultures, social & financial backgrounds, political perspectives, renters & owners, urban life and the countryside. Most new building projects in the housing sector don’t aim at building bridges in our society. Rather, they often accelerate a divide in our society.
tl;dr?
- We need to adapt how we (re)build and live more in tune with our planetary boundaries
- We need a lot more long term affordable housing solutions across Europe
- We need to create more approaches to housing that foster community and fight segregation
Now: who is going to fix this?!
In the middle of our current housing crisis, the role of publicly owned housing becomes more important than ever. But given the limitation of resources and the often slow bureaucratic processes, (most) cities can’t fix the housing crisis on their own.
What about the private real estate sector? Many companies have paused their development activities in the housing sphere because they can’t generate the financial profits they seek under the current market conditions. The available public subsidies to foster social housing are often perceived as not sufficient / suitable or to limiting. Other corporate players continue to build, but are focused on high end / luxury housing or serviced, temporary apartments.
In the bigger cities, even a large portion of people with decent “middle class” salaries can’t afford to buy their own apartments anymore - if one didn’t inherit a larger chunk of money.
Now, there is another, often-call third model in the housing sphere that has been around for decades, in some places even for over a century: Housing cooperatives!
Not so familiar with housing cooperatives?
Here’s a short introduction: Housing coops already offer a suitable approach to address the housing crisis, they exist in many cities and regions across Europe. Housing coops come in different forms and sizes - some housing coops only have one building that a group of people collaboratively owns. Others have thousands of apartments where all the members collectively own the cooperative company together. Most housing coops have emerged because of a longing for more affordable housing. Additionally, many coops also aim to strengthen a more community / ecological oriented lifestyle. The hybrid model that combines the flexibility of renting with the security and long term affordability of owning appeals to many people. That’s why the demand in most cities is a lot higher than the supply.
That leads us to the question:
Why is the supply of Cooperative Housing not growing faster?
Many Housing Coops willing to scale face similar challenges:
- Lack of access to affordable real estate assets with a development potential
- Lack of access to affordable capital to realise developments & refurbishments (especially with the increase of interest rates on the financial markets and substantially higher building costs)
- Limited resources / capacity to explore & leverage digital solutions / new technologies / organisational approaches to enhance efficiency, streamline processes, decrease the carbon footprint and lower costs
- Unlike large corporate housing developers or public housing organisations with 10.000+ flats, most housing cooperatives don’t have a lot of buying power to negotiate “good deals” with suppliers in a competitive market environment
- Existing coop members must also support new developments (…and that support is difficult to gain if new developments imply rising costs for existing members - without adding individual benefits)
Our approach
The European Housing Coop (EHC) aims to become the first community driven and technology powered company that accelerates the creation of sustainable, cooperative housing on a European scope.
We bring purpose aligned asset owners, companies, impact investors, local housing coops, and hopefully a whole lot of citizens into a new mode of collaboration - forming one pan-european cooperative company together. This will enable us to initiate the development of a growing number of spaces across the EU, each will feature affordable, climate-friendly and community-oriented housing. For ecological reasons, we’ll focus on repurposing / revitalising existing spaces.
This is how we’re envisioning the model:
The EHC becomes and remains a co-owner in each local project, but the development is always led by a local, experienced partner - ideally an existing cooperative. Through that model, all EHC members (whether they are individuals or organisations) partially own a stake in every EHC project. This allows us to build a network of spaces that we really collaboratively own together.
As we scale our mission to more cities, the EHC becomes more valuable and useful with every project that we give birth to. We bring a new level of mobility and interconnectedness to the cooperative housing world. Our members can move between places, cities and countries - they can stay as temporary residents in beautifully furnished apartments for just a few months, or as long term residents for potentially a lifetime.
What will the EHC do, more concretely?
Where are we at in the process?
At an early stage 🙂 It’s a big mission, and it’s gonna be a longer journey. But as they say: “If you can imagine it, you can build it”.
In 2025, we want to kickstart a campaign in 10+ cities across Europe to collectively built the European cooperative with citizens and companies. The entire organisation will run as a decentralised remote-coop, making it easy for anyone who wants to collaborate, independent where you’re currently based.
Got Interested?
Yay! Stay tuned through our newsletter and let us know if you want to become an early-stage collaborator. And just reach out if you have any other questions.
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