2024
BLOXHUB, The Shift and others
The report titled "Building Equity: Housing as a Key to a Low-Carbon Society," published in November 2024 by BLOXHUB with contributions from The Shift, addresses the urgent challenges of housing affordability and climate change. As Europe grapples with 10.6% of urban residents burdened by housing costs and a shrinking carbon budget, the report emphasizes the need for innovative solutions that integrate housing equity with decarbonization efforts. A key finding highlights the interconnectedness of the housing crisis and the climate emergency, suggesting that energy-efficient homes can alleviate long-term affordability by reducing utility costs. The report calls for a balanced approach to decarbonization, urging stakeholders to consider both short-term costs and the imperative of maintaining affordable housing. Cross-sector collaboration emerges as a crucial theme, with the report arguing that no single sector can tackle these challenges alone. Public-private partnerships are deemed essential for securing necessary funding, and consistent government support is highlighted as vital for sustainable progress. The report outlines various areas for innovation, including regenerative building practices, new business models, and community-led initiatives, which can drive meaningful change in the housing market. Finally, the report presents key recommendations such as recognizing housing as a fundamental human right and fostering collaboration across sectors. By collecting insights from literature reviews, expert interviews, and industry workshops, the report aims to empower stakeholders to create sustainable and affordable housing solutions, ultimately unlocking social value within the real estate industry.
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.