Cooperative housing in Catalonia: building an alternative to market regulated residences

Around 2,000 people in Catalonia will live in cooperative housing by 2028, estimations show. In countries such as Denmark or Austria, up to a third of the houses are owned by cooperatives.  

Projects of cooperatives as an alternative to private housing are increasing in Catalonia, with 38 more projects underway. 

A cooperative is a model of housing based on collective ownership. It often aims at making housing more accessible. 

Cooperatives such as Sostre Cívic or Sotrac Cooperativa are among the biggest in Catalonia. They offer housing through transfer of use. This type of cooperatives works by granting members the right to use one apartment for a long period of time. 

A contribution at the start as well as monthly quotas are required to be able to live in one of those buildings. 

"In order for a person to be part of a project of cooperative with transfer of use, they must contribute to what is known as the social capital, which is usually equal to 20% of the construction of that housing. When that person leaves the project, that 20% is returned to them." Ángela Garcia, professor at the University of Barcelona and Vice- President of Sostre Cívic told Catalan News. 

Residents pay monthly quotas in a similar manner as a mortgage which average between €500 and €600 per month, well below market prices.  

These prices allow low-income families to access housing while offering collective spaces that strengthen community ties. Elderly people as well as marginalized communities can thus recreate social connections while benefiting from an affordable apartment long term. 

Maria Lluisa Torres, inhabitant of La Voliana in Lleida, is paying €388 a month to live in one of the flats. She said that for "a new apartment like this one, in a good location " she wouldn't find "anything else for that price." 

Promoting community-building 

Cooperatives aim at providing affordable housing but also offer an alternative model of housing which focuses on the collective. Most of the buildings constructed are modern and centered around common spaces to foster community building. 

The cooperative Sotrac initiated 'satellite apartments' in a new construction. Ariadna Artigas, member of Sotrac, explains that you can "expand or reduce your home according to your needs over time", transforming your home, adding a workspace or a room for children to play.  

In general, common areas in cooperative housing consist of a common kitchen and lounge area, a workspace, a library or a terrace.  

For Ángela Garcia, cooperative housing is "for people who cannot own a home and also for those who consider that they want to live in a more communal environment". 

The number of common areas, and the common living experiences can vary from one project to another. Some projects aim at bringing elderly people together, such as in Sant Feliu de Guíxols with Walden XXI. 

Others are intended as a safe space for minorities or non-traditional households. In Barcelona's neighborhood of Nou Barris, the cooperative La Morada opened 12 flats as a feminist and queer cooperative. 

It is now "possible to dream and bring to life a housing model based on equal distribution, solidarity, community, and sharing life in a more equitable and fair way," Miriam Solà member of La Morada, said.

Financing cooperatives 

These apartments are public and thus prevented from speculation: it is impossible to rent or buy them or to make their prices increase.   

"The cooperatives in particular of transfer of use, differ from private market housing because there is no profit margin for anyone," Ángela Garcia explained. 

The model relies on the participation of members of the cooperative to manage the building democratically which reduces intermediaries otherwise needed from the construction to the day-to-day issues.  

The flexibility of the modern buildings and the use of common areas are also seen as an asset in reducing costs and ensuring long-term use of the building.

Financing mainly comes from public funding or ethical banks, as well as the contributions of future inhabitants. 

Usually, cooperatives use public plots of land that the city rents for decades which lowers the cost of housing in the end. For instance, a majority of plots of land used by Sostre Cívic are public.

However, in Barcelona scarcity of land pushes cooperatives to find solutions to turn private land into public land.  

"Barcelona is a particular case because the land is scarce, the price of land is also much higher. Bear in mind that for example in Barcelona the price of land is 50% of the promotion of housing", Ángela Garcia said. 

"Access to private land makes the cost higher and therefore the model less accessible or less interesting," she added. 

In order to increase cooperative housing, Ángela Garcia believes in the help of government funding to "lower the cost" and in introducing "regulations which secure the model." 

Cooperatives amid Catalonia's housing crisis 

With an increase in prices on the Catalan housing market, inhabitants have more difficulties renting or buying. In fact, many of the buyers are foreigners or Catalans looking for secondary homes. 

This increase in market prices but also in interest rates has prevented general access to ownership.  

Cooperative housing presents itself as one of the new types of housing that push to diversify the housing stock and increase public housing.  

Cooperatives are suited for people having "a hard time accessing property." Ángela Garcia said.  

It guarantees affordable housing solutions that also reinforce social ties. A drawback she said, is that inhabitants do not "generate an estate." 

She warned against the idea of increasing the housing supply as a solution to the housing crisis as "it does not necessarily improve affordability." 

"To make housing more accessible we need different mechanisms, such as other types of access regimes," Ángela Garcia told this media outlet. 

"There must be other mechanisms that combat the profit-driven philosophy of most of the agents involved in the promotion of housing," she added. 

In November, Sostre Cívic received a loan of €31 million from the European bank to finance 350 social housing units in Catalonia. These new projects of cooperative housing are expected to be completed by 2026.