
A key problem in many countries’ housing market is that the sector is too skewed towards treating housing as a financial asset, rather than a basic human need. There is almost universal consensus that negative gearing favours investor interest to the detriment of others. For a large part Africa’s housing affordability crisis (and by extension homelessness) results from an over-reliance on just three options – private home ownership, private renting, and government-funded interventions.
One wat to break the stalemate is to consider policies shown to have worked in other countries. This article reviews the wide range of housing policies employed by Sweden, Norway, Denmark and Finland and how they might be used to address homelessness and provide affordable housing. Of particular note among the housing policies of these nations is the prominence of housing co-operative, which assist both renters and those wanting to own a home.

One reason why Nordic countries were selected as case study is their relative success in tackling homelessness, with Finland being the world leader in this. There, the number of homeless persons fell from >16,000 in the late 1980 to c. 4,500 in 2020 – a homelessness rate of less than 1 per 1,000. In contrast data from Business Insider Africa indicates that Nigeria, the African country with the highest homelessness rate, had c. 24.4 million homeless persons in 2024 – a rate of 109 homeless persons per 1,000 of the population. While it is commonly agreed that homelessness is more complicated than just the cost of housing, Finland’s achievement is due to a range of policy responses underpinned by the government’s “Housing First” principle.
In Nordic countries housing co-operatives are a mainstream option for renters and home owners alike. Sweden’s co-operative sector amounts to c. 22% of total housing stock, while in Norway is represents 15% of national stock. In Denmark >20% of the population lives in co-operative housing.
This co-operative housing takes a variety of forms with they key denominating features being that they are democratically organised and exist to serve an economic and social need. Rental housing co-operative are focused on providing housing, not accruing wealth (for investors). Common resources are pooled to own and manage affordable rental accommodations and any revenue from rents is reinvested in new housing projects or upgrading older buildings.
In Denmark, rental co-operatives play a critical role in providing affordable housing for, inter alia, the elderly and those with disabilities. The non-profit orientation of these co-operatives, as well as supportive government policies such as lower-interest loans, enable co-operatives to reduce construction costs and charge lower rents.
In Norway, national law allows local government authorities to buy/use 10% of the housing units in a co-operative complex to house people who can’t afford alternatives. This has been vital in securing housing for immigrants and older persons.
Housing co-operatives also play a vital role in the pathway to home ownership. “Equity-based” housing co-operatives in Sweden, Denmark, and Norway help reduce the cost of home ownership which involves the co-operative building/buying a block of units and then allowing members to buy individual homes. The co-operative then retains ownership of common areas which are managed by all the co-op members. This structure is similar to strata title arrangements found in some countries, with the main difference being that strata title is often “investor-owned” while co-operatives are “user-owned”.
Not everything which has been done in the Nordic countries under consideration can be replicated in Africa, but one important takeaway is the importance of collaboration between different tiers of government and civil society organisations. Government pension funds, for example, have the means to invest in low-returning, yet safe, affordable housing assets. Government policies should support them in doing this through co-operative structures that help in filling the gap between market and state.
This article acknowledges that there is no quick fix and that emulating any Nordic housing policy achievements could take decades – Finland’s critical organisation for tackling homelessness was established in 1985. However, better housing options are available, waiting for policy makers, DFIs, and other stakeholders to take them.
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