Living Lab Hybrid Housing
450,000. That is the number of new homes Flanders will need by 2050 to ensure every household has a roof over its head. How can we meet that demand, while housing affordability is already under pressure today, materials are becoming more expensive, and space is scarce?
Over three years, the Living Lab explored how hybrid housing models, and housing cooperatives in particular, can contribute to affordable housing and meet society’s housing needs today.
The research resulted in seven concrete recommendations that help anchor the hybrid housing model in the Flemish housing landscape, combined with circular construction principles.
Want to know more? Scroll down to discover which choices are needed to make a difference.
The Living Lab Hybrid Living investigated in five “labs” how hybrid living models can contribute to affordable housing. Each lab focused on one parameter that influences the ultimate affordability of a project: money, user, land, building and governance.
Barriers and opportunities were identified and, together with frontrunners in the field, researchers and public authorities, we developed levers and policy recommendations to embed the hybrid housing model in the Flemish housing landscape, in combination with circular construction principles.
Result: seven recommendations
Through five interconnected transition pathways – money, user, land, building and governance – the Living Lab Hybrid Housing identified both barriers and opportunities.
Together with frontrunners in the field, researchers and public authorities, we developed levers and policy recommendations to firmly anchor the hybrid housing model within the Flemish housing landscape, while integrating circular building principles.
- Housing cooperatives have a clear legal basis—including the Belgian Code of Companies and Associations (Wetboek van vennootschappen en verenigingen, WVV), and the National Council for Cooperation and Social Entreprise (Nationale Raad voor de coöperatie en de sociale onderneming, NRC)—but lack policy recognition.
- Collective ownership should be explicitly valued within Flemish housing policy, alongside the traditional individual rental and homeownership market.
- Recognition by Flanders builds trust among banks, investors and residents to engage with the concept.
- Recognition is the foundation for developing targeted instruments, regulation and support.
- Ensure fiscal and financial alignment with traditional ownership and rental models (registration duties, (renovation) loans, …).
- Develop standardised model statutes, governance models and financial templates for housing cooperatives.
- Recognise and support an umbrella organisation for housing cooperatives.
- Strengthen the role of inter-municipal companies as facilitators and bridge-builders for local projects.
- Residents often prove satisfied with a turnkey approach.
- Encourage supply-driven development to increase efficiency, affordability and scalability.
- Two development pathways:
- Collaboration with property developers (lower risk, higher cost).
- In-house project development capacity within housing cooperatives (lower cost, higher up-front risk).
- Focus on compact design, standardisation and shared facilities to reduce costs.
- Limit resident participation in early phases to keep decision-making and construction costs under control.
- It is possible to find a balanced financing mix that combines affordability and investability.
- Market-based returns are crucial to attract banks and investors.
- Scaling up requires at least:
- A good mix of cooperative members (higher and lower initial contributions).
- Risk spreading, standard contracts and, where appropriate, public guarantees.
- Clear agreements on entry, exit and rent discounts, and what these mean for financing over time.
- Public guarantees or offtake commitments can increase willingness to finance.
- Affordability should be assessed over the building’s full life cycle.
- The largest life-cycle costs relate to production, installation, energy use and replacement of materials in the building.
- Smart design choices, including compactness, circular materials and reuse, reduce TCO and environmental impact.
- Higher upfront investments pay off through lower maintenance and energy costs. Financiers can factor this into their calculations.
- Collective spaces and shared amenities increase efficiency and quality of life.
- Flanders can pursue a more proactive land and property policy with social, affordable and sustainable criteria.
- Specifically, set up a land bank for non-speculative housing projects, potentially budget-neutral.
- Define and recognise non-speculative housing as serving the public interest.
- Work with recognised non-commercial structures that safeguard the model’s character.
- Grant these structures pre-emption rights or early access to public land and properties.
- Prefer leasehold arrangements and gradual repayment over discounts on purchase prices.
- Start-up challenges for housing cooperatives are mainly due to lack of liquidity and insufficient profitability.
- Establish a fund that provides subordinated bullet loans with a term of 5 to 10 years. These bullet loans bridge the risky start-up phase and enable refinancing.
- Aim for low returns, approximately 2.5%, and low management costs to safeguard affordability.
- Government can create leverage through capital, guarantees and support for start-up costs.
- Proven models, such as Trividend, show that limited public support can have a major impact.
More information
This central overview of the Living Lab will be expanded in the coming months with results, working models and final documents. Keep an eye on this page for updates.
Partners
This project is supported by VLAIO.
