A model-based Approach to Affordable Housing in Europe

Housing affordability is one of the most pressing issues in urban areas. During the Covid 19 pandemic, this problem spread to surrounding and more rural areas due to changing demand dynamics. At the same time, the economic downturn has exacerbated challenges for certain tenant groups.Based on an adapted Social Business Model Canvas, we are working with student groups on an interdisciplinary project to look at the entire affordable housing value chain from both the user perspective and the perspective of private and public housing companies, i.e., from design and planning to construction, operation, and redevelopment. The aim is to identify the main variables for achieving affordable housing prices, the interdependencies between them and their respective manifestations in Germany and five other European countries: Netherlands, Italy, Austria, Denmark and the United Kingdom. Based on this, we derive limits and drivers of value creation as well as potentials for the realization of affordable rents or housing costs.The Affordable Housing issues examined in each country are:Definition of 'affordable housing' and characteristics, needs and quantity of the most relevant user groups. Building conditions, structural-functional designs, and construction costs for Affordable Housing. Characteristics and business models of investors or providers of affordable housing. Legal framework / regulation for affordable housing (outside of building law). Tax framework and subsidy options for investors and users.In this presentation, the findings on business models as well as legal and fiscal framework conditions of Affordable Housing are presented. In addition, the findings on business models as well as legal and fiscal framework conditions of Affordable Housing are outlined.