Social housing in Luxembourg
November 4, 2014
Despite its comfortable economic position, the Grand Duchy of Luxembourg has not been spared from housing problems in recent years. In the wake of the announcements from the Housing Minister about the launch of a plan to build two thousand affordable housing units, let us review the state of social housing in Luxembourg.
Increased needs
With 70% of the population being homeowners and with a GDP among the highest in Europe, Luxembourg seems to be protected from housing problems. Yet, the situation continues to deteriorate with the rise in unemployment and a general downturn in income and purchasing power. At the same time, the real estate market is still rapidly expanding with prices tripling over a period of ten years, and this is also related to the constant increase in population. These new data make the most modest households inaccessible, particularly since social housing remains totally undersized - four thousand units, representing 3% of the housing stock, against 32% in the Netherlands and 17% in France.
Accommodation in Luxembourg
If the lack of social housing remains significant, there are nevertheless possibilities to buy a house or purchase an apartment in the social housing units in Luxembourg. Alongside the municipalities, two parastatals allow people who meet the criteria to own a social housing unit. It is the Fonds du Logement and The National Affordable Housing Company (SNHBM) who has a housing stock of about 1800 housing units.
New commitments
The social housing issues also include the issues related to social diversity, urban policies and also the fact of "living together". It is in this spirit that the Government has committed to construct two thousand new housing units by 2025. And 200 million euros will be allocated for this project. In total, it will therefore be around 500 million euros from the State which will subsidize the construction of 8,400 low-cost housing units in the years to come. This impetus is expected to make social housing more accessible and reduce the real estate pressure that is gradually becoming unbearable.
Accommodation in Luxembourg is becoming a real economic as well as a social and political issue. Better living together, architectural and environmental choices, economic demands are the criteria to be considered when finding accommodation in Luxembourg. Even for the most modest, it shall no longer be a challenge.
Increased needs
With 70% of the population being homeowners and with a GDP among the highest in Europe, Luxembourg seems to be protected from housing problems. Yet, the situation continues to deteriorate with the rise in unemployment and a general downturn in income and purchasing power. At the same time, the real estate market is still rapidly expanding with prices tripling over a period of ten years, and this is also related to the constant increase in population. These new data make the most modest households inaccessible, particularly since social housing remains totally undersized - four thousand units, representing 3% of the housing stock, against 32% in the Netherlands and 17% in France.
Accommodation in Luxembourg
If the lack of social housing remains significant, there are nevertheless possibilities to buy a house or purchase an apartment in the social housing units in Luxembourg. Alongside the municipalities, two parastatals allow people who meet the criteria to own a social housing unit. It is the Fonds du Logement and The National Affordable Housing Company (SNHBM) who has a housing stock of about 1800 housing units.
New commitments
The social housing issues also include the issues related to social diversity, urban policies and also the fact of "living together". It is in this spirit that the Government has committed to construct two thousand new housing units by 2025. And 200 million euros will be allocated for this project. In total, it will therefore be around 500 million euros from the State which will subsidize the construction of 8,400 low-cost housing units in the years to come. This impetus is expected to make social housing more accessible and reduce the real estate pressure that is gradually becoming unbearable.
Accommodation in Luxembourg is becoming a real economic as well as a social and political issue. Better living together, architectural and environmental choices, economic demands are the criteria to be considered when finding accommodation in Luxembourg. Even for the most modest, it shall no longer be a challenge.