2024
Zsuzsanna Pósfai, Csaba Jelinek, Mara Ferreri, and others
The document titled "Rethinking needs and financing for affordable rental and cooperative housing in Central and South-Eastern Europe" presents a conversation between Zsuzsanna Pósfai and Csaba Jelinek from the Periféria Policy and Research Center, along with Mara Ferreri from the Polytechnic University of Turin. Published in the Radical Housing Journal in January 2024, this discourse builds upon a research project conducted in 2022 across eight countries in the CSEE region, focusing on the pressing need for alternative housing solutions amidst a backdrop of increasing housing inequalities. The key findings reveal that over 90% of the housing stock in the CSEE region is owner-occupied, which restricts flexibility and fails to accommodate the diverse needs of many households. Surveys in major cities such as Budapest, Belgrade, and Ljubljana indicate a significant demand for alternative housing options, with a notable percentage of the population open to affordable rental and cooperative models. However, the current financial landscape is inadequate, primarily catering to individual mortgages rather than supporting nonprofit affordable housing initiatives. MOBA Housing SCE seeks to address these challenges by establishing a quasi-revolving fund to support local projects in their early stages, bridging the gap until traditional financing becomes accessible. The initiative emphasizes international cooperation and the promotion of collective ownership models that prioritize affordability and sustainability. As the CSEE region grapples with housing crises exacerbated by economic pressures, the document underscores the necessity for innovative financial solutions and collaborative efforts to foster systemic change in housing markets.
The document titled "Rethinking needs and financing for affordable rental and cooperative housing in Central and South-Eastern Europe" is a conversation between Zsuzsanna Pósfai and Csaba Jelinek from the Periféria Policy and Research Center, MOBA Housing SCE, and Mara Ferreri from the Polytechnic University of Turin, published in the Radical Housing Journal in January 2024. The discussion centers around a research project conducted in 2022 across eight Central and South-Eastern European (CSEE) countries, focusing on how catalytic capital investment can facilitate affordable rental and cooperative housing in the region.
Key Findings
- Housing Market Challenges: The CSEE region is characterized by a 'super' homeownership model, with over 90% of housing stock being owner-occupied. This model limits flexibility and fails to meet the needs of many households, particularly those unable to afford homeownership.
- Demand for Alternative Housing: Surveys conducted in four capital cities (Budapest, Belgrade, Ljubljana, Zagreb) revealed that more than half of the population desires changes in their housing situation. Between 13% and 26% expressed openness to affordable rental and cooperative housing models.
- Financial Barriers: Current housing finance products are inadequate for supporting alternative housing models. They predominantly focus on individual mortgages, which are inaccessible to many social groups. There is a need for new financial instruments tailored for nonprofit affordable housing providers.
- MOBA's Approach: MOBA Housing SCE aims to address these issues by creating a bottom-up quasi-revolving fund to support local projects in their early phases. This fund would act as catalytic capital to bridge the gap until traditional lenders can provide more suitable financial products.
- Internationalism and Cooperativism: MOBA emphasizes international collaboration and draws from state socialist traditions of cooperativism while adapting them to contemporary contexts. It promotes collective ownership models that are anti-speculative and prioritize affordability.
- Challenges and Opportunities: The main challenges identified include lack of access to adequate financing, insufficient regulatory frameworks, and limited organizational capacities. MOBA advocates for legal recognition of nonprofit affordable housing providers to facilitate public support.
- Future Directions: MOBA is developing the "MOBA Accelerator," a transnational revolving fund designed to provide bridge loans for project development. This initiative seeks to attract international solidarity and resources from larger cooperative networks.
Context
The research was conducted against the backdrop of increasing housing inequalities and crises in the CSEE region, exacerbated by an energy crisis and high inflation rates in 2022. The study highlights the need for diversification of housing tenure forms beyond individual homeownership to include rental and cooperative models.
Authors
- Zsuzsanna Pósfai: An initiator of Periféria Center and MOBA, with a background in housing activism, urban policy making, and academia.
- Csaba Jelinek: An urban sociologist focused on urban regeneration and housing policy, currently researching the historical sociology of housing cooperatives in Hungary.
- Mara Ferreri: A member of the Radical Housing Journal team from the Polytechnic University of Turin.
Overall, the document presents a comprehensive analysis of the potential for alternative housing models in Central and South-Eastern Europe, emphasizing the need for innovative financial solutions and international cooperation to address systemic challenges in the region's housing markets.