OECD (2020), Social Housing & Housing Policy

Housing is a fundamental human need, yet it has become increasingly unaffordable for many households, especially those with low incomes in recent years. Rising housing prices, stagnating wages, demographic pressures, and declining public investment in housing have exacerbated housing affordability issues in many OECD and non-OECD European Union (EU) countries (OECD, 2020[1]). The COVID-19 pandemic further highlighted the urgency to address these challenges, as it highlighted the existing housing affordability and quality gaps, particularly among low-income and vulnerable households. In this context, social housing has emerged as a crucial solution to provide decent, affordable housing to those unable to access it through the private market. This article will delve into the significance of social housing, the impact of the pandemic on housing issues, and the ongoing efforts to improve social housing and housing affordability.

Between 2005 and 2019, real house prices increased in 31 OECD countries, and rent prices rose in all but two OECD countries (OECD, 2020[1]). Since the Global Financial Crisis, house prices have risen faster than incomes in 21 of 33 OECD countries for which data are available. These trends have made it increasingly difficult for households to afford housing. Despite some improvements in recent years, more than a third of low-income renters spend over 40% of their disposable income on housing, on average in the OECD, and are thus considered overburdened by housing costs (OECD, 2020). This situation is particularly concerning as it affects the quality of life and financial stability of these households.

The COVID-19 pandemic and the shelter-in-place orders implemented to manage the crisis have put a spotlight on the enduring housing affordability and quality gaps. People living in poor-quality housing or unsafe living conditions, such as overcrowding or homelessness, faced elevated health and safety risks. Additionally, workers experiencing sudden economic losses struggled to cover their monthly rent, mortgage, or utility payments without assistance (OECD, 2020). The pandemic underscored the urgent need to address persistent housing vulnerabilities and homelessness, prompting many governments to introduce a range of emergency housing support measures.

Social housing has long been recognized as a key part of housing policy, both in the past and for the future. It remains an important component of the affordable housing solution in many countries, providing decent, affordable housing to those who are unable to access housing through the private market. In the EU, for example, the European Green Deal has provided renewed momentum for increased investment in social housing (OECD, 2020). The “Renovation Wave” announced by the European Commission in early 2020 as part of its European Green Deal has also reinforced the call to action for policymakers and housing providers to improve the quality of the building stock, particularly for social housing.

While the focus on improving the quality of social housing is essential, policymakers must ensure that renovations to enhance housing quality and energy efficiency do not lead to the displacement of low-income residents. This requires careful planning and implementation of policies that balance the need for quality improvements with the preservation of affordability and accessibility for those who rely on social housing.

The ongoing challenges of housing affordability and quality, exacerbated by the COVID-19 pandemic, highlight the critical role of social housing in providing a solution for low-income and vulnerable households. As governments continue to navigate the path towards economic recovery, increased investment in social housing and the implementation of policies that ensure both quality and affordability will be essential. The European Green Deal and the “Renovation Wave” offer promising frameworks for action, but sustained commitment and careful execution will be necessary to address the enduring housing vulnerabilities and ensure that housing remains a fundamental right for all.