Dr. Max-Christopher Krapp, Martin Vaché, Prof. Dr. Björn Egner & others
Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR)
2022
🏛️ Context and Publication The report "Housing Policies in the EU" was published in April 2022 by the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR), commissioned by the Federal Ministry for Housing, Urban Development and Building (BMWSB). This publication is part of the research program "Experimental Housing and Urban Development (ExWoSt)" and features contributions from researchers at the Institute for Housing and the Environment (IWU), Darmstadt, and TU Darmstadt, Institute of Political Science. Notable authors include Dr. Max-Christopher Krapp, Martin Vaché, and several professors specializing in housing policy. 🏘️ Diversity in Housing Systems The report reveals significant diversity in housing systems across EU member states. It categorizes these into four main groups: 1. Diversified Systems: These have a balanced mix of rental and owner-occupied markets, with strong institutional providers in the rental sector. 2. Two-Tier Systems: Characterized by a predominance of owner-occupied housing, with a smaller rental market primarily based on private letting. 3. Owner-Dominated Systems: These systems focus on owner-occupancy, with minimal public or social rental housing. 4. Post-Communist Transformation Countries: Marked by privatization, these countries have limited formal rental supply but extensive informal letting. 📊 Policy Instruments and Challenges Common policy instruments identified in the report include housing allowances, homeowner subsidies, and subsidized housing. Rent regulation is more prevalent in Western EU countries, with a strong emphasis on promoting homeownership through financial incentives. Key challenges highlighted include rising prices and rents in urban areas, a shortage of social housing, and issues related to energy poverty. Decision drivers in housing policy include energy efficiency, urbanization, immigration, and demographic changes. 💼 Impact of the Financial Crisis The 2008 financial crisis had varied impacts on EU housing markets, with some countries experiencing severe economic downturns due to interdependencies between housing and finance, while others faced supply shortages and affordability challenges. 🌍 EU Influence and Governance The report notes the EU's considerable influence on national housing policies, particularly regarding energy efficiency and social housing, yet it also points out the lack of a comprehensive EU-wide housing policy. Governance structures differ significantly across member states, with no clear link between the type of governance and housing policy outcomes, indicating varying levels of willingness to reform housing policies. In summary, the report underscores the need for tailored solutions to address the diverse housing challenges faced by EU countries, advocating for international discussion and policy exchange to foster sustainable housing practices.
Summary of "Housing Policies in the EU"
Context and Authors
The report "Housing Policies in the EU" was published in April 2022 by the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR) on behalf of the Federal Ministry for Housing, Urban Development and Building (BMWSB). The project was part of the research program "Experimental Housing and Urban Development (ExWoSt)" and involved researchers from the Institute for Housing and the Environment (IWU), Darmstadt, and TU Darmstadt, Institute of Political Science. Key authors include Dr. Max-Christopher Krapp, Martin Vaché, Prof. Dr. Björn Egner, Prof. Dr. Kai Schulze, and Samantha Thomas.
Key Findings
- Diversity in Housing Systems: The report highlights the diversity in housing systems across EU member states, ranging from balanced rental and owner-occupied markets to predominantly owner-occupied markets. Four main groups of housing provision systems are identified:
- Diversified Systems: Balanced between rental and owner-occupied housing, with significant institutional providers in the rental sector.
- Two-Tier Systems: Predominantly owner-occupied with a smaller rental market based on private letting.
- Owner-Dominated Systems: Strong emphasis on owner-occupation with marginal public or social rental housing.
- Post-Communist Transformation Countries: Characterized by privatization, with a marginal formal rental supply but significant informal letting.
- Policy Instruments: Common policy instruments include housing allowances, subsidies for homeowners, and subsidized housing. Rent regulation is more prevalent in Western EU countries. There is a notable emphasis on promoting homeownership through subsidies.
- Challenges and Drivers: Key challenges include price and rent increases in urban areas, lack of social housing, and energy poverty. Drivers of housing policy decisions include energy efficiency, urbanization, immigration, and demographic changes.
- Financial Crisis Impact: The 2008 financial crisis affected EU housing markets differently. Some countries experienced severe recession due to interdependencies between housing, finance, and the economy, while others faced mainly supply shortages and affordability issues.
- EU Impact: The report notes the EU's influence on national housing policies, particularly in areas like energy efficiency and social housing. However, there is a lack of comprehensive EU-wide housing policy.
- Governance and Reform: Governance structures vary significantly across member states, with no clear correlation between governance type and housing policy outcomes. The willingness to reform housing policies also varies widely.
Conclusion
The study provides a comprehensive overview of EU housing policies, highlighting the need for tailored solutions to address diverse national challenges. It encourages a "learning from abroad" approach to foster international discussion and policy exchange. Despite differences, common themes such as energy efficiency and urbanization are shaping housing policies across the EU.