Diversify the Housing Market and Regulate Rents

What is the problem?

Europe’s housing markets are overly reliant on private ownership and speculative investment, leaving little space for alternative, community-based models. Rapid rent increases and insecure tenures make it harder for young people and low-income families to remain in urban centers. Without regulation, housing becomes a financial commodity rather than a social good.

What should be done?

Encourage cooperative, communal, and non-profit housing models that keep ownership within communities and ensure long-term affordability. Provide public land or low-interest loans to housing cooperatives and community land trusts. Introduce neighbourhood rent reference systems that cap rent increases relative to local averages, preventing excessive inflation while rewarding energy-efficient upgrades. Strengthen tenant protection laws and support balanced, transparent rent negotiations.

Who should act?

National governments should adopt legislative frameworks and provide funding for social and cooperative housing. Municipalities should collect rental data, set reference levels, and monitor compliance. The European Investment Bank and the EU’s InvestEU program can finance innovative ownership and rental models.

What impact will it have?

Diversification fosters resilience, keeps mixed-income communities together, and limits speculation. It stabilizes rental markets, ensures fair access to quality housing, and strengthens the social dimension of Europe’s cities and towns.