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Brussels faces a severe housing affordability crisis that has intensified dramatically over recent years, affecting a broad spectrum of residents across income levels.
Price Surge and Affordability Gap
Housing costs have experienced explosive growth, with house prices surging 74% in real terms over the past decade while wages stagnated. Property values have risen 36% above historical averages relative to household incomes, requiring 7-8 years of average income to purchase a home. In the first half of 2025, average house prices reached €576,763 in Brussels, representing a 1.2% increase from 2024.
Rental Market Crisis
The rental situation has become equally dire. No Brussels municipality now has average rents below €1,000, with tenants paying €1,082 for one-bedroom apartments and nearly €1,500 for two-bedroom units. The rental crisis has accelerated rapidly - in 2021, half of new tenants paid less than €950, but now more than half pay over €1,200.
Transaction Barriers
High transaction costs of 12-15% of purchase price create additional barriers for first-time buyers, while mortgage rates of 3.2-3.6% further limit accessibility.
Who Is Affected
The crisis particularly impacts young adults and first-time buyers, with average house buyers aged 41 in Brussels and apartment buyers aged 40. Average households increasingly cannot access homeownership, making it increasingly exclusive to higher-income groups. The supply shortage in major cities continues driving upward price pressure, leaving many residents priced out of both buying and renting markets.
Brussels city administration is tackling affordable and sustainable housing through a multi-pronged approach, combining new regulatory frameworks, financial incentives, and innovative partnership models. Recent legislative changes in 2024–2025 introduced stricter rent regulation, including a new ordinance that targets abusive rent increases on short-term leases and strengthens habitability and tenant rights. Measures include ‘rent smoothing’ to limit rent hikes between successive leases and new standards for housing quality.
To promote affordable homeownership and sustainability, Brussels offers direct financial incentives: buyers can obtain up to €25,000 in registration duty exemption when upgrading a property’s energy class. Energy efficiency is further encouraged with reduced VAT for heat pump installation.
Concrete programs include the expansion of social housing through the regional housing authority (SLRB) and affiliated agencies, which offer below-market rents to qualified low-income residents. Additionally, the Community Land Trust Brussels (CLTB) develops permanently affordable, energy-efficient housing projects, where land remains community-owned and homes are sold below market rates with strict resale caps. A new pilot program extends this model to help low-income homeowners renovate properties to meet stricter energy standards, financed by combining public funds and cooperative investment. These efforts are increasingly paired with renewable energy initiatives, such as solar panel deployment in partnership with local energy cooperatives, supporting both affordability and sustainability goals.
Targets focus on maintaining and expanding social housing stock, improving energy efficiency, and curbing exploitative rental practices.
Cooperative housing in Brussels represents a small but growing share of the city’s overall housing stock. Estimates indicate that cooperatives account for under 1% of all housing units, translating to only a few hundred to a thousand dwellings, with projects like CALICO and CLTB being pioneering examples. These cooperatives focus on long-term affordability, energy efficiency, and community ownership, often blending the cooperative model with community land trust principles for sustained impact.
The sector is developing through several innovative pilot projects and expanding community-focused partnerships, particularly targeting mixed-income and vulnerable populations. Initiatives emphasize participatory governance, social integration, and climate-responsive building—supported by both regional authorities and EU-funded networks that facilitate cross-city learning and adaptation of successful models.
Recent policy dynamics prioritize relaxing zoning and planning rules, minimizing fees for affordable or cooperative developments, offering identical tax benefits to cooperative projects as to public or developer-led construction, and supporting local partnerships between cooperatives, municipalities, and civil society. These policies are part of wider strategies to promote affordability and sustainability in a region where housing market pressures are intense and social needs acute. Nonetheless, scaling cooperative housing remains challenging due to regulatory obstacles, limited funding, and relatively low institutional capacity compared to social or traditional rental housing.
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