Brigitte Alfter, Jose Miguel Calatayud & others
2022
🏙️ Context and Purpose The report "Cities for Rent: Investigating Corporate Landlords Across Europe" was collaboratively developed by over 25 investigative and data journalists from 16 European countries. The initiative aims to explore the rising trend of corporate landlords in the housing market, particularly in the context of the COVID-19 pandemic, which has exacerbated the housing crisis in many cities. The project highlights the growing demand for affordable housing and the financialization of residential real estate, making it a critical area of focus for sustainable housing discussions. 💰 Investment Trends Since the financial crisis, there has been a staggering increase of more than 700% in residential real estate investment in Europe, rising from €7.9 billion in 2009 to €66.9 billion in 2020. This influx of capital is largely driven by international investment funds and housing corporations that have been acquiring properties across European cities. The report emphasizes the urgent need to understand where this investment is coming from and its impacts on local communities. 🏠 Impact on Tenants The report documents numerous cases across cities like Madrid, Dublin, Lisbon, and Paris, where tenants have faced abusive practices by corporate landlords. For example, in Madrid, the American investment fund Blackstone acquired more than 4,800 homes intended for affordable housing, subsequently increasing rents significantly, leading to tenant evictions. Similar situations have been reported in Dublin, where a corporate landlord forced entry into a tenant's home, and in Lisbon, where properties were misrepresented as unoccupied despite families living there. 📉 Lack of Transparency The report reveals a concerning lack of transparency regarding the activities of corporate landlords, with many local governments unaware of the extent of corporate ownership in their cities. The absence of comprehensive data complicates efforts to address the affordability crisis, highlighting the need for improved data availability and transparency in the housing sector. 🌍 Call to Action "Cities for Rent" aims to be the starting point for more cross-border collaborative research on the affordability crisis in housing. It provides insights into the challenges faced by tenants and advocates for an informed public dialogue about the implications of corporate ownership in the housing market. The initiative encourages contributions from the public to enhance the understanding of these critical issues in sustainable housing.
Everyone needs a home, and even more during a pandemic.
High demand for rental flats across European cities has contributed to make housing a very attractive investment. At at time when many people can’t find an affordable and decent flat to live, reports of a huge increase in investment flows into housing across Europe go hand in hand with stories of abusive practices by ‘corporate landlords’, companies that buy and rent out housing for profit.
Where is all that money coming from? Who are the companies and investors buying so much housing across Europe? How does this phenomenon affect people’s lives and homes in European cities?
During a period of more than seven months, a team of over 25 investigative and data journalists and visualisations experts from 16 European countries, have been working on the cross-border collaborative project Cities for Rent: Investigating Corporate Landlords Across Europe.
We wanted to find the data and visualise these developments, and document their effects on our cities and in people’s lives. We found that since the financial crisis international investment funds and housing corporations have been buying up homes across European cities and there are different critical issues connected to this.
Finding all the relevant data is being a challenge due to a lack of transparency by corporate landlords, and we would like Cities for Rent to become the start of an open collaborative effort towards more cross-border research into the crisis of housing affordability in European cities and how that affects people’s lives.
Cities for Rent won the European Press Prize, received an honourable mention at the IJ4EU Impact Award 2022, and was nominated to the Sigma Awards for data journalism.
About the investigation
In Madrid in 2013, authorities sold more than 4,800 homes, originally intended as affordable housing, to companies controlled by American investment funds. After the sales, conducted with very little publicity, one of these new ‘corporate landlords’, American giant Blackstone, greatly increased the rents – in some cases by doubling them over a period of three years. Many tenants ended up being evicted.
In Dublin, in May 2019 a representative of another ‘corporate landlord’ forced his way into a flat and caused extensive damage inside. The tenants said that the company had been trying to make them leave since it had bought the building the year before.
In Lisbon, in 2017, two companies bought a building for 2.7 million euros and shortly after put it up for sale for 7 million as an “unoccupied” building, when in reality there were 12 families living there.
In Paris, London, Copenhagen and Berlin, tenants in homes owned by Swedish company Akelius have been complaining for years of abusive practices by their ‘corporate landlord’. In 2020, even the UN Special Rapporteur on the right to housing said that Akelius was abusing its tenants’ human rights.
In those and other cities across Europe, for years conversations have been often revolving around how hard it is to find an affordable and decent home to live in. And now the Covid-19 pandemic has made even clearer how important it is to have a proper home. Studies in the UK and France have shown that overcrowded homes, areas with very little social housing and the number of homeless people living in temporary accommodation all correlate with higher mortality rates due to Covid-19.
Everyone needs a home, and high demand for rental flats across European cities has contributed to make housing a very attractive investment – so much so that the total investment into residential real estate in Europe has increased more than 700% between 2009 and 2020, from 7.9 to 66.9 billion euros, according to data by Real Capital Analytics.
Where is all that money coming from? Who are the companies and investors buying so much housing across Europe? How does this phenomenon affect people’s lives and homes in European cities?
During a period of more than seven months, a team of over 25 investigative and data journalists and visualisations experts from 16 European countries, have been working on the cross-border collaborative project Cities for Rent: Investigating Corporate Landlords Across Europe.
We wanted to find the data and visualise these developments, and document their effects on our cities and in people’s lives. We found that since the financial crisis international investment funds and housing corporations have been buying up homes across European cities. And there are different critical issues connected to this.
Reports of negligence and of abusive tactics by ‘corporate landlords’ are consistent in most of the cities researched. Tenants complain about Blackstone in Madrid and in Amsterdam. About Akelius in Paris, London, Copenhagen and Berlin. About Heimstaden again in Berlin and also in Ostrava –in the Czech Republic–. We heard the same stories in Lisbon and Dublin and in other cities.
In Norway, the biggest private landlord, Fredensborg, pays only around 2,500 euros annually in property tax despite owning owning 3,800 rental flats in Oslo. And while generally real estate investment trusts (REITs) enjoy quite favourable tax incentives across Europe, we found signs that in Milan, Copenhagen and other cities ‘corporate landlords’ may be engaging in tax avoidance tactics.
‘Corporate landlords’ are also increasing their presence in cities like Zurich, Vienna and Prague. The absence of data in places like Lisbon makes it almost impossible to know how many homes those kinds of companies have acquired. In Athens, the lack of an online property registry makes it almost impossible to find out the detailed consequences of the huge Greek economic crisis, where thousands of homes are being publicly auctioned as people can’t pay for them.
We found that often local governments themselves don’t know much about the precise situation in their cities, and lack proper data about the investment flows into the rental estate markets. We confirmed this worrying trend: lack of data availability and accessibility, and of comparable data across cities, means there is still much to research and to find out if we want to have a properly informed public conversation about housing markets across Europe.
Cities for Rent: Investigating Corporate Landlords Across Europe, should be the first step towards more cross-border collaborative research into the crisis of housing affordability and how it affects people’s lives.
On this site, we are sharing our research methodology and its limitations, and our approach to data visualisation; and we are making available a data catalogue describing all the data sets we have been gathering and generating ourselves.
If you have comments or questions, or if you want to contribute data or to research corporate landlords yourself, do get in touch.
Team
Co-initiators
- Brigitte Alfter (Arena for Journalism in Europe)
- Jose Miguel Calatayud (Arena for Journalism in Europe)
Team members by country
- Alexandra Siebenhofer (Austria, ORF)
- Steven Vanden Bussche (Belgium, Apache)
- Gaby Khazalová (Czech Republic, Deník Referendum)
- Bo Elkjær (Denmark, Information)
- Alexander Abdelilah (France, WeReport)
- Hendrik Lehmann (Germany, Der Tagesspiegel)
- Sotiris Sideris (Greece, AthensLive & Reporters United)
- Lois Kapila (Ireland, Dublin Inquirer)
- Alice Facchini (Italy, freelance)
- Peter Hendriks (Netherlands, Follow the Money)
- Steinar Rostad Breivik (Norway, E24)
- Micael Pereira (Portugal, Expresso)
- Peter Sabo (Slovakia, Aktuality)
- Manuel Gabarre (Spain, freelance)
- Christian Zeier (Switzerland, Reflekt)
- Cat McShane (UK, freelance)
Editorial and overall coordination
Jose Miguel Calatayud (Arena for Journalism in Europe)
Data coordination
Adriana Homolova (Arena for Journalism in Europe)
Data visualisation
- Hendrik Lehmann (coordinator, Der Tagesspiegel)
- David Meidinger (lead developer, Der Tagesspiegel)
- Benedikt Brandhofer (freelance)
- Nikolas Zöller (freelance)
Animated video
- Nikolas Leontopoulos
- Alexia Barakou
Illustrations
Moritz Wienert
IT and web architecture
Benedikt Hebeisen (Arena for Journalism in Europe)
Expert advice
Christoph Trautvetter (freelance, external project lead at “Wem gehört die Stadt?” of the Rosa Luxemburg-Stiftung)
Also contributed
- Elisabeth Lind (Austria, ORF)
- Charlotte Deprez (Belgium, freelance)
- Jakub Nakládal (Czech Republic, freelance)
- Mathieu Périsse (France, WeReport)
- Anna Thewalt (Germany, Der Tagesspiegel)
- Helena Wittlich (Germany, Der Tagesspiegel)
- Manuel Kostrzynski (Germany, Der Tagesspiegel)
- Sidney Gennies (Germany, Der Tagesspiegel)
- Sinan Recber (Germany, Der Tagesspiegel)
- Lorenzo Bagnoli (Italy, IrpiMedia)
- Hans Mortensønn Jordheim (Norway, E24)
- Sarah Pinho (Portugal, freelance)
- And the editorial and data journalism staff of the media and publishing partners