Governing Social Impact Investment in Urban Affordable Housing How Government Interventions and Policies Shape Social Impact Investments: Bridging Political and Private Sector Perspectives

Social Impact Investments (SII) have developed as a private investment approach and have provided crucial impetus for governance practices addressing housing issues. To improve access to affordable housing and reduce homelessness, SIIs are regarded as a powerful instrument. Nevertheless, little is known about how varying government interventions and policies affect social impact investment decisions by private investors, real estate companies, and developers in affordable housing across different cities. As housing policy issues are of unprecedented scale and are highly influenced by rapid systemic changes, this study explores different ways in which SIIs are implemented to provide affordable housing and reduce homelessness within governance systems, by bridging the private sector and political perspective. It draws on existing literature and qualitative methods, using semi-structured expert interviews and case studies conducted in European cities such as Vienna, Berlin, Zurich, Graz, Bern, and Karlsruhe. It identifies key levers, barriers, and actors that shape the implementation of SII in affordable housing, and assesses how collaborative urban governmental interventions and policies either foster or hinder impact-oriented investment. The study contributes to a better understanding of the interplay between market-based instruments and public policy in achieving social outcomes in urban housing.