About Denmark

Early Development of Cooperative Housing

Cooperative housing (in Danish, Almene Boliger) emerged in the early 20th century, driven by a need for affordable housing in growing urban centers. The first housing cooperatives were established in Copenhagen in the 1920s, often with support from labor unions and social democratic political forces. These early cooperatives aimed to provide secure, affordable homes for working-class families, emphasizing non-speculative ownership and community governance.

Origins of the Cooperative Movement in Denmark

Denmark’s cooperative tradition dates back to the mid-19th century, rooted in rural self-help initiatives. The cooperative movement began in agriculture, when farmers established cooperative dairies and slaughterhouses to counteract the dominance of private middlemen. This spirit of mutual aid and democratic control eventually spread to other sectors, including retail, banking, and housing.

The Danish Model: The Almene Boliger Social Housing Model

Denmark’s Almene Boliger sector is a cornerstone of the country’s social housing system, offering affordable, high-quality homes to a wide range of residents—including low-income families, students, single parents, and the elderly. Managed by about 550 non-profit housing associations and covering nearly 1 million households (one in six Danes), the sector operates independently of direct government funding through a self-sustaining investment model.

Though not formally registered as cooperatives, Almene Boliger estates follow cooperative principles and strong tenant democracy. Residents actively participate in governance and strategic decisions, ensuring accountability and responsiveness.

The sector is tightly regulated: rents are capped at 25% of income, subsidies support the most vulnerable, and municipalities can reserve 25% of units for emergency cases. There are no income limits for eligibility, but tenants must use the homes as their primary residence. Emphasis is placed on sustainability, with efforts to reduce the carbon footprint through modular construction, energy-efficient design, and the reuse of materials and furnishings. Ongoing innovation includes experimenting with shared living models to strengthen community bonds.

With broad public support and oversight by the Danish Federation of Almene Boliger (BL), established in 1919, the sector is considered vital for promoting equality, social mobility, and housing security in Denmark.

Source: Dialogue 8

Legal Framework

The legal foundation for cooperative housing in Denmark is established in the Andelsboligforeningsloven (Cooperative Housing Act). Key features include:

• Ownership model: Members of a housing cooperative own a share (andel) that gives them the right to occupy a specific unit. They do not own the unit individually.

• Democratic control: Each member has voting rights, and cooperatives are governed by a general assembly and a board elected by the members.

• Non-profit nature: Cooperatives are intended to operate on a cost-based, non-profit model, with limitations on resale prices to prevent speculation.

• Regulation of pricing: Resale prices of units are governed by public valuation rules to maintain affordability and curb market speculation.

Over the years, regulations have changed, particularly after the liberalization reforms of the 1990s and 2000s, which allowed more flexibility in pricing and financing. These changes introduced greater market exposure, which has made some cooperative units less affordable, especially in major cities like Copenhagen.

Characteristics of Cooperative Housing in Denmark

• Affordability: Historically, cooperative housing was significantly more affordable than private home ownership. Today, this depends on location and the age of the cooperative.

• Community orientation: Residents participate actively in decisions, maintenance, and management. This fosters social cohesion and long-term stability.

• Non-speculative ethos: While newer cooperatives can sometimes resemble private housing in price, older and traditional cooperatives continue to operate under non-profit principles.

Financing

Cooperative housing is typically financed through:

• Collective mortgage loans: The cooperative (not the individual member) borrows to finance property acquisition or development.

• Member shares: New members pay an entry fee (the value of the share), which can vary based on the location, condition of the unit, and cooperative rules.

• Maintenance fees: Members pay monthly fees to cover loan servicing, maintenance, and operational costs.

• Government support: Historically, cooperatives benefited from public subsidies, though this has decreased over time.

Current State

As of recent estimates, cooperative housing accounts for about 7–8% of the Danish housing stock, with higher concentrations in cities. In Copenhagen, andelsboliger are an important part of the middle-income housing segment. However, the market value of shares in some cooperatives—particularly those that were liberalized in the 2000s—has risen sharply, reducing affordability and increasing buyer risk due to collective debt obligations.

Some challenges facing the sector include:

• Speculation and price inflation in liberalized cooperatives

• Risk of debt burden for cooperatives with high collective loans

• Regulatory complexity, especially for buyers unfamiliar with the cooperative ownership model

Resources Tagged "Denmark"

Social, affordable and co-operative housing in Europe – Case studies from Switzerland, Austria, France, Germany, the Netherlands, and Denmark

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Profils d’un mouvement : Les coopératives d’habitation dans le monde

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Public Cooperative Housing Policies: An International Perspective

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Financing Co-operative and Mutual Housing

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Logement abordable : profils de cinq villes métropolitaines

Par cette publication, nous souhaitons ouvrir le débat sur le logement en tant que droit fondamental et enjeu métropolitain, en mettant en lumière l’expérience de grandes métropoles et dans l’espoir d’inspirer des idées nouvelles pour aborder cet enjeu absolument fondamental de l’urbanisation moderne.Read More

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Building Strong Development Cooperation: Partnership Opportunities between Cooperatives and the EU

In 2000, United Nations (UN) member states recognised the need to build global partnerships for development and the exchange of expertise as one of the Millennium Development Goals. Across the international development field, part ...Read More

Financing and Development Global

Raising Capital: The Capital Conundrum for Co-operatives

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Financing Housing Co-operatives in a Credit Crunch

Financing the development of housing co-operatives is a challenge and more so in time of financial restrictions and uncertainty.  CHI members discussed the issue during a seminar held in November 2009 in Geneva.  Presentations w ...Read More

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 The Forest Products Annual Market Review 2013 reports that the development of new refinement processes has led to the production of new and more affordable wood based products such as cross-laminated timber (CLT). The report sta ...Read More

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The Guidance Notes on the Co-operative Principles

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Promoting Cooperatives – International Labour Organization (ILO) Recommendation 193 on the Promotion of Cooperatives

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Profiles of a Movement: Co-operative Housing around the World – Volume One

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Students and Housing Cooperatives

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Good Governance Charter for Housing Co-operatives

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Profiles of a Movement: Co-operative Housing around the World – Volume Two

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The Blueprint for a Co-operative Decade and its Special Application to the Housing Sector

The Blueprint for a Co-operative Decade is a worldwide campaign to “take the co-operative way of doing business to a new level”. The five key elements of the Blueprint are participation, sustainability, identity, legal frameworks and capital. The Blueprint is particularly relevant to co-operative housing and the Blueprint interpretation for co-operative housing below explains how.Read More

Governance Global