Social Housing Success Stories from Vienna (Austria), Iquique (Chile), and Sardinia (Italy)
At DCH, highlighting case studies where we see progress and innovation in addressing housing inequalities and access to housing is one way that we can bring fresh ideas to the housing conversation in Dallas. Where we see much of the city of Dallas paying more than 30% of their income on housing, and the increase of the eligibility limits for HUD increasing, due to lack of affordable housing, these type of solutions show how creativity in policy can help close the housing gap. Here we explore three case studies that are successful approaches to social housing in different contexts: Vienna (Austria), Iquique (Chile), and Sardinia (Italy). Some of the strategies and policies that have led to positive outcomes in each location can be useful to bring to the housing conversation.
What is Social Housing?
Social Housing is housing provided by governments, non profits, and other entities to house lower earning families and individuals. Affordable housing, as we know it in the US, falls within that category, however the ways that other countries have found solutions to providing housing may be instructive.
Vienna, Austria:
Recently, The New York Times and various other news outlets covered the social housing success Vienna achieved identifying it as a global model for effective social housing policies. Vienna prioritized affordable housing for over a century, ensuring a high standard of living for its residents. According to research, two elements underlie Vienna’s success; its’ commitment to public ownership and long-term planning. The Vienese local government acquires land and buildings, allowing for the development of new social housing units. As a result, nearly 60% of Vienna's population resides in affordable housing, benefiting from secure tenancies and reasonable rents. It is an example of how a population can flourish and thrive without housing pressures.
Iquique, Chile:
We discuss the dilemma of the “shrinking middle class” and an ever widening income gap in Dallas housing. In Iquique, Chile, a coastal city also experienced housing challenges relating to income inequity, and its’ regional government implemented the "Social Housing for the Middle Class" program to address affordability issues (Rodríguez-Álvarez et al., 2020). The local goverment provided subsidies and facilitated access to credit, enabling middle-income families to purchase affordable homes. More than 10,000 households benefited from this initiative and the success of the program is evident in the increased homeownership rates and improved living conditions for residents. In Dallas, we are seeing this type of policy at work through the fund, Dallas Opportunity Housing Fund, which makes lending more affordable for developers of attainable and affordable housing, like DCH. This case study is instructive, as increased subsidies directly for housing and home owning reduce pressure on populations and can revitalize certain areas.
Sardinia, Italy:
Sardinia has faced a number of housing challenges including population growth, high construction costs, and limited available land. In fact, this is a quite common scenario that European cities face, that are dissimilar to the US housing pressure. Abandoned villages in Europe are often due to regulation that preserves antiquities, but at the same time, perpetuates lack of affordable housing. The regional government in Sardinia sought to overcome these obstacles, by encouraging development through "Case a 1 Euro" (Houses for 1 Euro) project. The initiative involved the sale of abandoned or dilapidated buildings to individuals or families for one euro, on the condition that they would renovate the properties. The aim was to restore historical areas, promote tourism and foreign investment, and provide affordable housing. By attracting new residents and investments, the initiative has successfully revitalized towns, preserved cultural heritage, and created affordable homes. While this may be an approach that is more appropriate for abandoned villages, there is an interesting perspective for incentivizing rehabilitation projects to middle class families and budding entrepreneurs in underutlized areas of Dallas. Where we give people land and opportunity, we give them agency to improve circumstances.
These successful approaches to social housing in Vienna, Iquique, and Sardinia offer interesting strategies for regional government incentivizing, subsidizing, and providing for the middle class. Where Vienna's long-term planning and commitment to public ownership resulted in widespread access to affordable housing, Iquique's program for the middle class has facilitated homeownership and promoted social integration, and Sardinia's "Case a 1 Euro" initiative has revitalized towns. Each of these not only bolstered access and affordability to the middle class, but provided for affordable housing as well. This is mixed income housing at its’ core. Where developers and policy makers work together, we can draft new solutions that alleviate housing pressure and increase equity.
Want to learn more about social housing? Click on our links in the blog to further research.