A National Response to the Housing Crisis is Needed

The Mouvement Ecologique supports the “Kollektiv Logementskris”

The housing crisis does not directly fall within the Mouvement Ecologique’s area of expertise. However, the Board of Directors believes that, given the housing crisis that has been widely recognised for decades, it is important to show solidarity with this coalition of youth organisations, even if the Mouvement Ecologique cannot actively support every individual demand.

The housing crisis, particularly among young people and socially disadvantaged households, has an enormous impact on their lives and also has environmental implications (the possibility of finding housing close to the workplace; the financial resources available to make environmentally friendly investments).

For this reason, the Mouvement Ecologique is also calling for participation in the protest demonstration.

(Public Petition No. 4246)

Objective of the petition

This petition calls on the government and the Chamber of Deputies to expand the Housing Round Table (“Logementsdësch”) and transform it into a National Commission to Combat the Housing Crisis, which would meet every month under the authority of the Prime Minister.

In addition to the relevant ministers (Housing, Interior, Environment and others), this commission should bring together Syvicol, the Chamber of Employees, the Chamber of Skilled Trades and Crafts, the Association of Banks and Bankers, the Housing Observatory, the Real Estate Chamber, and consumer protection and housing organisations (ULC, Fondation pour l’accès au logement, Mieterschutz asbl).

The commission would be responsible for developing and coordinating a multi-year national response to the housing crisis while accelerating its implementation. It would report to the Chamber of Deputies at least twice a year on planned measures and the progress achieved.

Among the measures the commission could consider are:

• The issuance of an annual public bond programme entitled “Housing”, worth €500 million per year over four years, with the funds invested entirely in the construction or acquisition of housing.

• The establishment of a national target of 20% affordable housing.

• Doubling the state guarantee for homeownership loans to facilitate access to credit for first-time buyers.

Motivation behind the petition

The housing crisis is a national crisis that requires a national response.

According to estimates, up to 137,000 additional homes could be needed in Luxembourg by 2035 to meet demand. However, between 2012 and 2022, Luxembourg built just over 38,000 homes. At the same time, the construction sector lost nearly 5,000 jobs between 2022 and 2023.

This severe housing shortage has led to unaffordable housing prices, affecting the entire population and young people in particular.

The country is facing a persistent crisis that requires innovative and ambitious solutions. However, the latest measures announced by the government as part of the “Booster fir de Wunnengsbau” initiative demonstrate that current policies continue to rely on the same approaches (such as accelerated depreciation). These measures have failed to resolve the crisis in the past and will not resolve it in the future.

The creation of a National Commission bringing together all relevant public authorities and private-sector stakeholders would aim to finally establish the national momentum and ambition needed to address the housing crisis comprehensively and in a coordinated manner through far-reaching measures.

Such a commission would also ensure that responsibility for resolving the housing crisis does not rest solely with the Ministry of Housing. All ministers and their administrations, as well as private-sector stakeholders, would be required to contribute within their respective areas of responsibility towards achieving this shared priority objective.

Monthly meetings would encourage the various public authorities to advance projects as quickly as possible, while twice-yearly reports to the Chamber of Deputies would ensure transparency regarding the progress made and keep citizens informed.