Housing has a socio-economic dimension, being at the same time an existential human need and an object of investment. Hence, there is a need for economic models which are compatible with the market mechanism without being oriented at profit-maximisation – so-called alternative or diverse economy models. These become relevant in collective negotiations of housing conditions by landlord and tenant associations (as in Sweden or under the Italian “assisted tenancies”) or Benelux public rental agencies, where private landlords rely on state or municipal agents to rent out their house at lower prices in return for public management and rent guarantees. 

Most relevant are, however, private governance structures such as cooperatives, non-profit housing companies and community land trusts. Cooperatives in particular constitute a “third housing pillar” alongside rent and ownership in many EU Member States. After acquiring a usually small membership quota of the cooperative, their members are assigned a dwelling unit at reduced rent for a long period. They may also participate in the decision-making of the cooperative. In sum, cooperatives unite the economic advantages of providing affordable, non-speculative housing and the political virtues of local democratic self-governance.