2024
BLOXHUB and The Shift
The report "Building Equity: Housing as a Key to a Low-Carbon Society," published by BLOXHUB in November 2024, addresses the critical intersection of housing affordability and climate change. With 10.6% of Europeans burdened by housing costs and the urgent need to drastically reduce carbon emissions in the built environment, the report highlights the necessity of simultaneous solutions. Key findings emphasize the importance of cross-sector collaboration, advocating for public-private partnerships to secure financing and support. Innovations in building practices, business models, financial frameworks, and policies are essential for addressing these challenges. The report calls for recognition of housing as a human right and recommends new investment structures, enhanced collaboration, and greater transparency to foster sustainable and affordable housing solutions. Methodologically, it draws on literature reviews, expert interviews, and industry workshops to identify barriers and opportunities for social value in real estate.
This comprehensive report titled "Building Equity: Housing as a Key to a Low-Carbon Society" was published in November 2024 by BLOXHUB, with The Shift as a contributing partner. The initiative "Unlocking Social Value in Housing" was funded by the Laudes Foundation.
Key Context
The report emerges at a critical time when Europe faces dual challenges:
- 10.6% of Europeans in cities are overburdened by housing costs
- The EU's carbon budget for the built environment has only ten years left at current emission rates
- New buildings must reduce carbon content by up to 94% by 2050 to meet Paris Agreement targets
Major Findings
Housing Crisis and Climate Emergency
- Housing affordability and decarbonization efforts are interconnected challenges requiring simultaneous solutions
- Energy-efficient homes can enhance long-term affordability through reduced utility costs
- The industry must balance short-term costs of decarbonization with maintaining housing affordability
Cross-Sector Collaboration
- Neither public, private, nor third sector can solve these challenges independently
- Public-private partnerships are essential for securing long-term financing
- Government support is crucial through consistent mechanisms and political leadership
Innovation Areas
- New Building Practices: Regenerative design, density optimization, flexible living spaces
- Business Models: Infrastructure investment approaches, profit-sharing with tenants
- Financial Innovation: Impact investment frameworks, blended finance models
- Policy Innovation: Fast-tracking permits, protecting against renovictions
- Community Innovation: Community land trusts, retrofit hubs
Key Recommendations
- Recognize housing as a fundamental human right
- Explore new investment structures like infrastructure investments
- Unlock industry innovation capabilities
- Foster collaboration between public and private sectors
- Increase agency among developers
- Build knowledge and improve transparency
Methodology
The report's findings were gathered through:
- Comprehensive literature review
- Expert interviews
- Three industry engagement workshops across Europe
- Global practitioner consultations
The report represents a significant effort to collect barriers and opportunities from the industry and provide an initial foundation for unlocking social value within the real estate industry, with the aim of empowering stakeholders across the sector to lead by example in creating sustainable, affordable housing solutions.