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FRISIAN NEWS

The numbers behind the news

English · Frysk · Nederlands

Why Public Housing Was Abandoned and Why It Should Come Back
Society

Why Public Housing Was Abandoned and Why It Should Come Back

July 29, 2026 · Frisian News

Vienna housing: 62 percent of residents live in public housing at 24 percent of income. Most Western nations abandoned the model anyway, choosing ideology over shelter.

English

In Vienna, public housing covers 62 percent of the population. The average renter there spends a significantly smaller share of income on housing than counterparts in other major cities. In American cities, the median is 30 percent, and in London, higher still. The difference is not geography or wealth. It is the choice to build.

After 1945, nearly every Western government committed to public housing. Britain's council estates housed millions, and America's pre-war projects, though imperfect, provided stability to working families. Then ideology shifted. In the 1980s and 1990s, political leaders sold off public stocks, cut funding, and told people that the free market would solve housing. The market solved it, but only for investors, landlords, and developers who profit from scarcity, not for working families.

Today, institutional investors own a large share of single-family homes in America. They bid up prices, maintain them artificially high, and extract rent. Zoning laws passed by local governments prohibit apartment buildings in residential areas, a policy that sounds boring but locks in housing shortages. Every restriction makes homes more valuable to those who already own them and less affordable for those who do not.

Public housing works. Montgomery County, Maryland runs a program that rents homes at 30 percent of tenant income. Vienna's social housing is not luxury, just ordinary, modest, and functional. Rents are stable, and people can plan their lives.

The case for public housing is not sentimental but practical. Markets work well for many things, but housing is not one of them; a family needs shelter the way it needs water. When shelter becomes scarce by design, ordinary people suffer while investors gain. The question is not whether we can afford to build public housing. It is whether we can afford not to.


Published July 29, 2026 · Frisian News