Copenhagen allocates millions to boost housing supply

All political parties in Copenhagen City Council have agreed to redirect around 80 million Danish kroner (€10.7 million) from last year’s unused municipal budget to fund new housing initiatives, DR reports.

The majority of the funds will support the creation of new co-operative housing (andelsboliger), with the city estimating the money could help establish between 60 and 75 new homes. Mayor Sisse Marie Welling (SF) stated the move aims to prevent rental properties from being dominated by investment funds.

“Rental homes on the market shouldn’t just go to capital funds. We need to help Copenhageners purchase rental properties to convert them into co-operative housing associations,” Welling said.

Nearly 4 million kroner (€536,000) will fund a new 15-person “housing patrol” to combat illegal short-term rentals exceeding 70 days per year, though this requires pending national legislation. Additional funds will hire specialists to accelerate future zoning plans for the city.

The agreement also earmarks resources for roughly 4,300 new public housing units, but this depends on parliamentary approval of a pre-election housing proposal that would raise cost ceilings for such construction.

“We’re eagerly awaiting a new government. Until then, we’re doing everything we can,” Welling added.