The housing crisis will also continue to haunt Luxembourg after the pandemic, Luxembourg's Minister for Housing Henri Kox said.
Residential construction has been a political priority for a long time. The discussions and ideas did, however, not always translate into reality and housing prices have kept skyrocketing over the last years. Individuals with meagre incomes are most affected, the Luxembourg Institute of Socio-economic Research (LISER) explained during a press conference on Thursday.
The researchers outlined a number of approaches that could be used to combat the rising inequalities. They agreed that it is key to make affordable housing accessible for more people. Luxembourg's Minister for Housing Henri Kox stated that his ministry would try to implement this recommendation.
LISER also stressed the importance of including targeted residential construction in the so-called housing pact 2. The goal, the researchers said, is that everyone can afford a home. This idea has been a key point in Luxembourg's political discourse over the last years.
Housing Observatory: housing prices increase more rapidly than salaries
The LISER report also found that housing prices in Luxembourg increase more rapidly than salaries. Tenants are the worst-affected group. Around 40% of tenants belong to the lowest salary groups.
The government is planning to implement a new law that will regulate the increase of rent prices more efficiently. Officials also hope to offer more affordable state-owned housing.