Housing is a major problem in Europe. Facilitating access to housing, especially for young people, has become a priority in numerous countries, where average salaries often struggle to cover rising rental costs.

In this context, the price of housing has increased on average by 48% in the past decade, according to Eurostat. This significant rise is attributed to increased production costs and higher mortgage rates. While rental prices increased by 18% between 2010 and 2022, attributed, among other factors, to the proliferation of short-term rental contracts. In addition, housing construction has declined, leading to a problem of excessive demand and insufficient supply.

To address the housing accessibility issue, European countries have implemented various measures to ensure access to affordable housing. These strategies include homebuying assistance, social housing programs, and rental price regulations. The European Commission has even launched the European Affordable Housing Initiative in an effort to address the housing problem.

Information about social housing

European countries with a higher percentage of social housing typically operate under a rental system. Norway stands out as an exception, where social housing is predominantly based on ownership rather than rental arrangements. In general terms, access to social housing is typically subject to certain income level requirements. However, in some countries, middle-class households can also benefit from these housing programs.

The countries with the highest percentages of public housing in Europe are the Netherlands (30%), Austria (24%), Norway (23%), and Denmark (20%). These nations significantly surpass the EU average of 9.3% for public housing provision.

The Netherlands

With 30%, the Netherlands has the highest percentage of social housing in Europe. This achievement is largely due to initiatives by city councils that have acquired land for urban development or sold it for the construction of housing projects. During the 1990s, the Dutch government outsourced the management and maintenance of the residential housing stock to Housing Associations—non-profit social entities responsible for overseeing and managing social housing rentals. These associations also support housing development in the private market, but any profits generated must be reinvested into social housing. The average price for a home exceeds €5,000.

There are more than 280 non-profit organizations managing approximately 2.3 million properties. To access these properties, which have a capped rental price, applicants must meet specific requirements, including being a Dutch citizen and staying within a maximum income threshold. The main challenge is the extensive waiting list, which can be as long as 10 years.

Switzerland

In Switzerland, 57.8% of the population rents their homes, while 8% of the total real estate stock is owned by housing cooperatives. Switzerland has more than 1,500 housing cooperatives, managing over 160,000 homes. This housing model dates back to the 19th century, and in 1919, the Swiss Housing Cooperatives Federation was established. Social housing plays a crucial role in cities like Zurich, where 25% of the housing stock is managed by non-profit cooperatives, offering rental properties at moderate prices.

The cost of cooperative housing is, on average, 20% lower than market rates, with prices that can reach as high as €12,000. Residents of these cooperative housing units become shareholders of the cooperative, acquiring an ownership stake through shares instead of paying a traditional rental deposit. As co-owners, residents take an active role in the management and decision-making of the cooperative. These housing cooperatives feature communal spaces such as shared laundry facilities, meeting rooms, and event areas.

Austria

In Austria, 24% of the housing stock is designated as social housing, with Vienna standing out as a leading example, with 50% of all homes managed by the city council. Since the 1920s, Vienna began developing social housing projects, funded through tax revenues collected from various goods and private housing. Vienna’s social housing has grown from 64,000 to 220,000 city-managed homes, with an additional 200,000 cooperative flats, ensuring access to affordable housing. In Austria, housing prices average around €6,000 per square meter.

Approximately half of Vienna’s population, around one million people, resides in social or subsidized housing. To qualify for social housing in Vienna, applicants must be European citizens, have lived in the city for at least two years, and not exceed a set income threshold, ensuring it is accessible to a broad range of social classes. Vienna allocates over €400 million of its budget annually to social housing. Rental contracts were previously indefinite, but a 1994 rental law reform introduced fixed-term leases of 3, 5, or 10 years.

Norway

Norway stands out among the Nordic countries, with around 80% of the population owning a home. However, the market operates largely through housing cooperatives, which play a key role in facilitating access to homeownership. The Cooperative Housing Federation of Norway (NBBL) represents 41 cooperative associations, collectively managing 23% of the country’s housing stock. This cooperative movement emerged after World War II as a vital initiative to rebuild the nation’s housing stock. Anyone can become a member of a housing association, and membership is transferable from parents to children.

Norwegians can purchase the homes they live in, but buying additional properties for rental purposes is not allowed. Home purchases in Norway occur through a direct auction process, and members of housing associations have a unique advantage—they can match the highest offer and secure the property for themselves. Members of housing cooperatives also benefit from a guarantee fund, which covers mortgage payments in case the owner is unable to meet their financial obligations. In Norway, housing prices average around €5,000 per square meter.

Oslo provides municipal housing for individuals who are unable to access other types of housing due to low income or insufficient public assistance. Applicants must meet specific income requirements, and these municipal housing units serve as a temporary solution, with rental periods typically ranging between 3 to 5 years.

Denmark

Denmark has over half a million public housing units, representing 20% of the country’s total housing stock. The majority of public housing in Denmark was built between 1950 and 1980, with a significant concentration in the Copenhagen region. In this city, over 22% of the population lives in public housing, whereas in the country’s other four regions, the percentage drops to 15%.

Public housing in Denmark operates under a rental system, requiring a deposit equivalent to 2% of the property’s purchase price. Average price of housing in Denmark is €4,344 per square meter. This deposit is refunded when the tenant moves to another property. Rental prices are adjusted annually.

There are no income restrictions for accessing public housing in Denmark, but the majority of residents tend to have below-average incomes. According to a study by the Danish Parliament’s Housing Commission, 60% of public housing tenants pay less than 5,000 kroner (€669) per month, while the remaining pay above this amount. It is also estimated that around half of the residents in public housing flats receive government assistance to help cover their rent.

Spain

Spain ranks 18th in terms of social housing, with just 2.5% of its housing stock dedicated to this sector. This is because protected housing was originally built to be sold at a controlled price, but once it lost its protection status, it could be sold on the free market. Furthermore, the construction of protected housing has been at a standstill since 2013, which has significantly contributed to Spain’s low percentage of social housing. Compared to other European countries with a higher percentage of social housing, Spain’s housing prices are relatively lower, averaging just under €3,000 per square meter. However, the disparity in wages is significant, with an average salary of just €1,700.

The government now aims to expand the protected housing stock by allocating 2 million square meters of residential land to the Public Housing Entity, enabling the construction of thousands of properties under an affordable rental scheme. These newly built homes will remain publicly owned. To qualify for public housing, applicants must meet a specific income cap and cannot own another property.

Romania

Romania (1.5%), Estonia (1.7%), Croatia (1.8%), and Portugal (2%) all have a lower percentage of social housing than Spain (2.5%). According to Eurostat, Romania has the highest homeownership rate in Europe, with 93% of the population owning their homes, while also having the lowest percentage of protected housing. Although housing prices in Romania have increased less than in other countries, they still average around €1,800 per square meter. However, access to housing remains a challenge, as average wages barely reach €900.

Portugal

Portugal’s social housing stock currently stands at 2%, but the Portuguese government has introduced new measures aimed at increasing this percentage. For example, construction on rustic land will now be permitted, provided that 70% of the developed area is allocated to social housing. However, property prices in Portugal are among the highest in Europe, exceeding €3,000 per square meter. It is also the European country with the fastest-growing housing prices, while average wages barely surpass €1,000. 

Measures to promote social housing in major European countries primarily focus on rental-based solutions and public subsidies to help cover rent payments.

The measures to promote social housing in the main European countries focus on rental policies and public aid to cover rent payments. However, it is necessary to increase housing construction to meet the population’s needs. The upcoming Tomorrow.Building World Congress will address new construction methods developed in smart cities to make housing more affordable.

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Methodology

All European countries were considered but only those with all information available were included in the final list. Countries are not presented in any particular order.

Sources: 

• Average salary – www.numbeo.com
• Average cost per square metre – www.numbeo.com
• Percentage of public housing – ec.europa.eu/eurostat
  • Norway source – www.bbc.com
  • Switzerland source – www.revoprosper.org

All data is correct as of January 2025.