Towards a New Housing Model: UNECE Releases a new Review on Municipal Housing in Kharkiv
As the conflict continues to affect Ukraine, Kharkiv oblast and especially Kharkiv city remains one of the most damaged areas. Homes, public buildings, and essential infrastructure have suffered serious destruction. Nearly half of Kharkiv’s housing stock has been destroyed, putting strong pressure on the rental market and making recovery even more urgent. At the same time, the city faces a difficult demographic situation, with low birth rates, slow population growth, and large numbers of internally displaced people in need of housing.
To respond to these challenges, the UNECE UN4UkrainianCities project is releasing a new review prepared in 2024 by Housing Initiative for Eastern Europe (Initiative Wohnungswirtschaft Osteuropa - IWO) e.V.: “Municipal Housing in Kharkiv: Affordable Rental Models for Housing Recovery in Ukraine”. This study supports the city in developing a municipal rental housing programme that can meet its most urgent needs, introducing the idea of establishing a Kharkiv Municipal Housing Company (KhMHC) that would build, own, and manage a new stock of social rental housing, providing stable and affordable homes for residents and displaced families as the city rebuilds.
Framework and Recommendations for the Kharkiv Municipal Housing Company
The newly released review provides recommendations for establishing the KhMHC as the key operator of social rental housing. Indeed, renting has become an increasingly common solution in the city as the ongoing conflict has forced many families to leave their homes, caused the arrival of large numbers of internally displaced persons, damaged much of the existing housing stock, and increased demand for temporary and affordable places to live.
The study outlines recommendations to benefit Kharkiv’s socio-economic development and defines how the social rental housing programme should operate. It stresses the need to create a self-sustaining housing stock and includes:
An overview of the proposed social rental housing operator in Kharkiv (KhMHC) as an independent legal entity, defining its functions and scope, the procedure for determining rental prices and recipients;
A presentation of step-by-step actions for program implementation, including approval, financing, and other practical actions;
Recommendations for legislative amendments on a national level, as the current regulation on social housing stock does not provide an effective economic model capable of attracting long-term investments, lacks provisions for a sustainable subsidy system, and does not enable the creation and operation of specialized housing providers.
The model emerges as a strategy to address urgent housing needs and social inequalities by providing housing to families with different income levels. It also highlights the model’s potential to foster job creation while adhering to modern European standards and principles of municipal housing.
Finally, the newly published review underscores the importance of reforming Ukraine’s post-conflict social housing system and advancing alignment with EU standards and emerging European initiatives on affordable housing to support Ukraine’s path toward EU accession.
European Models: Lessons from Germany and Poland
The review presents the experiences of Germany and Poland, two of the most relevant municipal housing models in Europe in the case of Ukraine.
Indeed, Germany was chosen due to its longstanding municipal housing model, a multi-level housing system, and municipal housing companies. After World War II, the country underwent a rebuilding process with a massive state-supported social housing programme producing millions of affordable units. This system evolved into a diversified, rental-oriented housing market.
The Nuremberg case study was chosen not only for its longstanding relationship as a twin city with Kharkiv and their continuous exchanges, but also to showcase WBG Nürnberg GmbH Immobilienunternehmen, a city-affiliated housing company with over 100 years of experience. Here, from 10 to 14 November 2024, IWO e. V. and UNECE organized a study visit to provide Ukrainian housing experts with insights into the management of a municipal housing company.
The choice of Poland is based on its experience transitioning from a socialist housing system, providing useful insights for countries pursuing similar reforms. The main takeaway is the importance of diverse housing provision options through a balanced mix of homeownership, private rentals, and social housing. This strategy is essential not only for providing shelter but also for supporting mobility, economic development, and social inclusion, including targeted schemes for specific groups such as students, families, and vulnerable residents.
These experiences can provide useful insights on how Ukraine can benefit from strengthening local government capacity and supporting non-profit housing organizations through a suitable legal framework, financial incentives, and the facilitation of public-private-nonprofit partnerships.
The Path Towards Recovery through Sustainable and Affordable Housing
As Kharkiv continues its path toward recovery, the guidance of the model proposed in the review provides a foundation for rebuilding the city and fostering equality. Kharkiv now has the opportunity to concretize a long-term vision for sustainable, affordable housing, grounded in European best practices. The programme outlined in the full review proposes establishing a municipal organization responsible for planning, constructing, and managing social rental housing in Kharkiv. By gradually creating a stable stock of affordable homes, the city would be better equipped to support residents, meet the needs of displaced people, and strengthen the foundations for sustainable urban recovery.