2022
Dr. Max-Christopher Krapp, Martin Vaché, Prof. Dr. Björn Egner, and others
The report "Housing Policies in the EU," published in April 2022 by the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR), delves into the diverse housing systems across European Union member states. This comprehensive study, commissioned by the Federal Ministry for Housing, Urban Development and Building, involved collaboration among various researchers and emphasizes the need for effective housing policies in addressing national challenges. The report identifies four main groups of housing provision systems: diversified systems with balanced rental and owner-occupied markets, two-tier systems that favor owner-occupation, owner-dominated systems with minimal rental options, and post-communist countries characterized by privatization. These classifications highlight the varying approaches to housing across Europe and the implications for policy-making. Key findings reveal that while common policy instruments like housing allowances and subsidies exist, significant challenges remain, including rising rents, insufficient social housing, and energy poverty. The report further underscores the impact of the 2008 financial crisis on housing markets, showing that its effects varied greatly among member states. In conclusion, the study calls for tailored solutions that reflect the unique contexts of each member state. It advocates for a "learning from abroad" approach to encourage dialogue and exchanges of best practices in housing policy, aiming to address shared issues such as energy efficiency and urbanization while respecting the distinct needs of individual nations.
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.