The Danish government will create 25,000 new social housing units over the next ten years. Social and Housing Minister Sophie Hæstorp Andersen announced the initiative in a statement. She said housing affordability affects more than just living conditions. 'When ordinary people cannot afford to live in cities, it becomes a social problem. And a democratic problem,' Andersen explained.
The plan increases maximum construction costs for social housing projects. Cities like Copenhagen and Aarhus can now exceed current limits by 20% for ten years. The national maximum amount will also rise by 1% and adjust regularly for inflation. Housing organizations can borrow more to cover high land prices.
Minister Andersen said subsidies can be used more flexibly under the new rules. This allows new construction projects to offer apartments at lower rents. The changes could enable up to 1,400 additional social housing units annually. That totals between 10,000 and 14,000 new homes over ten years.
The housing announcement follows recent benefit reforms that took effect in July. Some benefit recipients now receive smaller payments and risk homelessness. Municipalities can no longer provide housing supplements under the new system. The government will allocate 15 million kroner in 2026 to help vulnerable benefit claimants.
This substantial housing investment addresses growing urban affordability challenges across Denmark. The plan acknowledges that housing costs impact social equality and community diversity.