Social housing: challenges and prospects for the future
Social housing has become an increasingly pressing issue across Europe. In many countries, the demand for decent and affordable housing far exceeds the available supply, creating significant barriers to this fundamental right for low-income families, young people in precarious employment, retirees with limited pensions, and other socially vulnerable groups, such as refugees, migrants, or individuals with disabilities or special needs.
With ongoing demographic shifts (an aging population, a rise in single-parent households, urban overcrowding coupled with a scarcity of developable land) and a real estate market in constant flux (rising rental prices, intensive tourism, real estate speculation), access to social housing faces mounting challenges.
What the data shows
In recent years, the European housing market has undergone dramatic changes. Between 2015 and 2022, housing prices in Portugal increased by 94%, making homeownership unattainable for a significant portion of the population, particularly for young families or workers in precarious jobs. This phenomenon, mirroring a broader European trend, occurs against a backdrop of economic growth that has yet to be matched by rising household incomes, as noted in the SEDES report. Similarly, the European Commission highlights that the price-to-income ratio in many member states has been climbing since the 2008 financial crisis, creating what it describes as a “housing affordability crisis.”
The demand for social housing has risen sharply, driven by economic and demographic factors such as the 2008 recession and the effects of the COVID-19 pandemic. According to the World Bank’s “Revisiting Social Housing” report, political crises and conflicts forcing migrants and refugees to seek safety have intensified pressure on the social housing market, significantly increasing the need for affordable housing solutions. However, the supply of social housing remains insufficient to meet this growing demand. In urban areas, long waiting lists have led to severe social consequences, such as housing exclusion and worsening inequalities, the World Bank warns.
How technology can help
The World Bank also underscores the growing importance of technology in fostering a fairer and more accessible housing market. Digital platforms specialized in this field, such as Quidgest’s Gihabita, have proven to be effective tools for more agile and efficient resource allocation. These solutions enable more rigorous management of housing unit inventories, help reduce waiting lists, and promote greater transparency in allocation processes. Additionally, by integrating real-time data, such systems aid in identifying demand patterns and planning responses to specific housing needs.
European governments have sought to address housing challenges through a variety of measures, including rent control policies. In countries like Austria and Germany, strict regulations on rent increases protect tenants, as highlighted in the UN-Habitat report. In Norway, the government has implemented a public-private partnership model where private companies are incentivized to construct affordable housing with state funding. This system has successfully expanded the supply of controlled-price properties. Meanwhile, Denmark has introduced a flexible social housing system, where rents are adjusted according to household income, ensuring access to housing that aligns with families’ financial realities.
However, ensuring accessible and dignified social housing for all requires a strategic approach beyond isolated measures. Combining inclusive public policies with technological innovation and cross-sector partnerships involving governments, businesses, and civil society is essential. Several Nordic countries already benefit from public-private partnerships and flexible rent adjustment systems, which could be effectively adapted to other contexts.
In Portugal, such initiatives must be accompanied by investments in transportation and service infrastructure in peripheral areas, administrative agility, and the promotion of a long-term vision centered on social cohesion and reducing inequalities. Social housing is not merely a social or economic challenge – it is a collective responsibility and a priority for the sustainable development of our cities and communities.
*This article was originally published in Revista do Empreendedor
