Housing Policy or How to Efficiently Manage the Housing Fund of Cities

Efficient management of the city's housing stock is not only possible, but also necessary. Especially at a time when the Czech Republic fell to the last place in Europe in the housing affordability indicator, which is confirmed by current statistics (Eurostat, 2024), but also by a number of expert studies and conceptual materials.

Housing affordability is one of the most pressing problems of public administration today. In 2024, the Czech household needed on average already more than 13 gross annual wages to buy a new home of its own, in addition to the increasing costs of all other forms of housing (cooperative and rental). As a result of the massive privatization of the city's housing stock in the Czech Republic after 1989 (and its subsequent reduction), many cities lost the opportunity to intervene effectively in the housing issue on their territory. And it is here that a well-thought-out housing policy can help, which can contribute to better housing affordability for all target groups of residents.

Ostrov: the city that has retained the housing stock

While many cities now own only 3-5% of the housing stock, the city of Ostrov currently manages more than 11% of the apartments in the urban housing stock, which is above the average in the Republic comparison. It is thanks to this stable base that the city can influence the housing market, respond to the needs of specific groups of residents (e.g. social housing) and plan systematic renewal and expansion of the housing stock. Urban apartments are not only a tool of social policy, but also a strategic element in the management of population dynamics and economic development of the city.

Efficient administration means more than just rent collection

The city of Ostrov has just completed a brand new concept of housing policy, which responds to the most pressing problems related to the housing issue in the city. It is mainly about implementing measures and activities aimed at effective administration and renewal of the housing stock. This includes not only setting adequate and cost-based rent (so-called marginal rent), but also introducing a systemic approach to maintenance, repairs and investments. The result is to be a stable and healthy housing stock that will serve as a basic tool of the city's policy.

So what can the city do in the area of housing?

Among the specific tools that cities can use are:

• systemic renovation of the housing stock (part of which is the implementation of marginal rent),
• incentive programs for housing support and introduction of discounts for preferred target groups and professions,
• support of starter apartments for young households,
• cooperation with developers under clearly defined conditions (planning contracts and social responsibility settings),
• development of alternative forms of housing, such as cooperative housing or intergenerational cohousing.

A well-developed and well-thought-out housing concept in the city gives the local government a sufficient number of tools for the effective management of local housing policy. The city must not only be a passive property manager, but an active coordinator of local housing policy, which understands that affordable and decent housing is a prerequisite for a healthy urban environment and at the same time treats the management of housing stock as an investment in the future of the city and the quality of life of local residents.

Quality and available data are essential for management

However, an important prerequisite for the successful management of housing policy is sufficient coordination between the city's unions, the determination of specific responsibility for issues related to the management of housing policy (e.g. the creation of the position of housing policy coordinator) and the thorough digitisation and subsequent management of available data on housing policy in the city (rental contracts, inflation clauses, condition of properties). However, only quality and available data will allow the municipality to monitor the development of demand, costs and condition of the housing stock over time, including the determination of a plan for investment in the renewal of the housing stock. Data orientation and transparency are also key to building trust between the city, citizens and potential investors.

Housing policy as a public service

High-quality urban housing policy is not a luxury, but today it is also a necessity. It is an investment in the future – in the local economy, the health and quality of life of local residents. The island shows that cities have the tools to face up to the housing crisis. The key is the courage to think strategically, to follow the data and to remember that housing is not only a market commodity, but above all a public interest.

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