How Scandinavian nations are building community while tackling housing affordability

In this US-based podcast,  Anna Granath Hansson from NordregioPaavo Monkkonen and host Shane Phillips look at the role inclusionary zoning policies could play for affordable housing and social mix in Sweden, Norway and Denmark. Their discussion raises issues and possible solutions for the sector here in Australia and New Zealand. 

What if there was a way to tackle both the affordable housing crisis and create more diverse, vibrant neighbourhoods at the same time? That's exactly what researcher Anna Granath Hansson and Paavo Monkkonen explored in a recent chat on the UCLA Housing Voice podcast with Shane Phillips.

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The conversation centered around inclusionary housing policies – essentially rules that encourage developers to include affordable units and create more socially mixed communities. While these policies have taken off in the United States and are gaining ground across Europe, Scandinavian countries have been surprisingly slow to jump on board. This is interesting when you consider that Denmark, Norway and Sweden are known for their strong commitment to equality and making sure everyone has access to decent housing. 


So, why the hesitation? A new study in Housing Studies by Anna Granath Hansson and her colleagues digs into this question, looking at what makes each Scandinavian country tick when it comes to housing policy.

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Abstract

Inclusionary housing policies, aiming at creating both affordable housing and mixed neighbourhoods through land use regulation, do not have a long history in Scandinavia. Although Denmark, Norway, and Sweden have traditional welfare state perspectives on equal opportunities and housing, the use of the planning system to implement policy is hesitant. This article outlines the diverse political backgrounds and influences from housing and planning systems that explain this paradox. Further, differences between the housing and planning systems in the three countries are well illustrated by the varying interpretations of inclusionary housing policies. Policy results, in terms of affordability and social mix, play out very differently in the given contexts. The article in this sense adds to the scholarly conversations about barriers and opportunities for IH policy implementation, by contextualizing the conversation with implications from within systems that are relatively homogeneous and aiming for redistribution and equity. This raises questions about when, if, and how IH policy is the appropriate approach.


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What they discovered is telling. These policies work differently depending on where you are. Denmark and Sweden tend to focus on creating neighbourhoods where people from different backgrounds live side by side—think of it as building community diversity. Norway, on the other hand, is laser-focused on simply making housing more affordable for people who need it.



The results? Well, it turns out that inclusionary housing policies aren't a one-size-fits-all solution. Their success really depends on what each country is trying to achieve and how their political systems work.


This research opens up some really important conversations for anyone involved in city planning or housing policy. It asks us to think carefully about whether inclusionary housing is the right tool for creating the kinds of communities we want to live in, and how we might need to adapt these policies to fit different cultural values and goals.

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