Housing providers in mature welfare states such as the Nordic countries and the Netherlands face a significant challenge: meeting the growing demand for affordable housing while continuing to invest in sustainability and quality.
This pressing issue—introduced by Liv Jorgenson of NBO Housing Nordic—was the central theme of the session “The Housing Equation: The Search for Sustainable and Affordable Living in the Netherlands and the Nordic Countries.”
Vibeke Borch Henning of BL – the Danish Federation of Non-Profit Housing Providers – opened the session with an overview of the housing markets in Denmark, Finland, Iceland, Norway, and Sweden. These countries all have mature housing systems, with policies aimed at providing housing for all. Their markets are typically divided between homeownership and rental housing, with about half of the rental sector being regulated.
So, what’s the problem? Vibeke explained that it’s becoming increasingly difficult to build new homes, even though demand remains high. This is especially true for affordable housing, where rents are capped but land- and construction costs continue to rise. Denmark faces the most severe situation: the average cost of building a unit now exceeds the revenue it can generate under rent limits. As a result, affordable housing providers are hesitant to initiate new projects.
One potential solution was presented by Jeff Hill, a Canadian architect based in the Netherlands. His firm, DOOR Architects, has developed a scalable and repeatable building system that Dutch housing associations have already applied to construct new homes in Amsterdam.
Jeff emphasized the need for greater innovation in the construction industry. While car manufacturing has become vastly more efficient over the past century, building methods have barely changed. By collaborating closely with contractors and subcontractors and adopting an integrated, repeatable construction model, the industry can reduce costs and deliver higher-quality housing.
