Living in Luxembourg: “Why not? But you still have to find a rent that doesn’t eat up half your salary.” This observation is driving many workers to live on the other side of the border. In response, the housing ministry is stepping up its efforts to develop the affordable housing sector in order to meet the needs of households in difficulty.
In 2023, the Special Fund for Affordable Housing increased its spending by 7%, allowing the approval of 728 additional subsidised housing units. In total, there are now 3,786 housing units and 270 projects deployed across the country.
Some of these large-scale projects will drastically increase the supply of affordable housing in the coming years:
- the “Haargarten” project in Wiltz, which will build 250 homes on an 8.3-hectare site, with an estimated budget of between €40m and €50m;
- the “Itzegerknupp” project at Bonnevoie, which will provide 484 homes on a 13.3 hectare site, with an estimated state contribution of between €180m and €220m; and
- the “JFK Sud” project in Kirchberg, on a 2-hectare site, with plans for 175 homes and a budget of between €35 and €50m.
It will still take between 10 and 15 years to complete the first two projects, and between four and six years for the third. Of the 270 projects currently under way, 70% are being developed by the state-owned Société Nationale des Habitations à Bon Marché (SNHBM) and the Fonds du Logement, and are spread across 79 municipalities across the country.
Initiatives don’t eradicate the ills of affordable housing
Other figures in the report show that the fund’s financial commitment amounts to €541m, up from €310m in 2022. Around a third of this sum--€183m, to be exact--has been invested in the creation and acquisition of housing. Of this amount, 60% is for affordable rental and 40% for sale. The housing ministry has also signed agreements for financial contributions totalling €408.2m over the course of 2023.
The special fund has enabled the state to acquire more than 2,000 ares of land in 2023, with an estimated potential for the creation of 550 affordable homes, which will enable it to guarantee a continuous supply of affordable housing over the long term.
On the whole, this is a positive result, but it should not erase the difficulties linked to affordable housing. As a reminder, . And affordable housing is not necessarily affordable for everyone. The former minister for public works, (déi Gréng), --during the presentation of a project to build 250 affordable homes in Kirchberg--that €6,000 per square metre was an affordable and reasonable price for housing of this quality in the district. Although this is half the price of the €12,000 per square metre estimated for a standard home by the or platforms, the question remains as to whether €150,000 for a 25m2 studio is really an affordable option for the most disadvantaged people.
This article was originally published in .