Territorial Review Copenhagen - Region Hovedstaden

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Aside from a regional focus, the involvement of the national government is
key in building the next generation of Copenhagen‘s affordable housing
stock, given the limited planning powers Danish municipalities have at their
disposal to pursue affordable housing. Given this predicament, the next
section outlines possible strategies at the municipal, regional, and national
levels to facilitate housing production and its diversity.
Increasing the supply of modest cost housing: options at the
municipal level
Particular relief is needed for the low end of the rental market. Low
turnover rates, long waiting lists, the amalgamation of smaller units into
larger units, and the conversion of private rental housing to housing societies
have constrained the private rental market. Prices in the city of Copenhagen
have increased at a meteoric pace: from 1997 to 2007, the average price for
an owner-occupied apartment nearly quadrupled. 17 The question of adequate
and affordable housing in the city of Copenhagen occupies a central place in
political debate. The City of Copenhagen might consider additional tools
that transcend policies in the 2009 City Development Plan: 18 the reduction
or elimination of fees for new rental housing, streamlining the development
approval process and reducing particular taxes for inexpensive rental
developments. Given the slow pace of construction and an accelerating
economic recession, governments in the Copenhagen metro region could
design policies to reduce the barriers of entry into the homebuilding
industry. Facilitating entry has the potential to increase housing production.
Research from Vancouver, for example, shows that builders respond to
market uncertainty by delaying construction, an effect that is counteracted
when there were many other competitors in a locality (Mayer and
Sommerville, 2002; cited in Ball, 2006). Finally, the City of Copenhagen
could more proactively encourage the development of smaller ―accessory
dwelling units‖ commonly known as in-law units, carriage houses or
secondary apartments. This could be done through making it easier for
owners to construct roof-top apartments, expand existing buildings, and
facilitating the conversion of commercial properties into residential
buildings (Erlandsen et al., 2006). Such a strategy, though already pursued
by the City of Copenhagen, may have particular appeal to outlying
municipalities whose homes are generally newer and more prone to
accommodate the stress of additional floors and physical alterations. 19
More favourable rental housing construction economies could also be
created. The Copenhagen metropolitan region‘s construction sector has
capacity constraints that could be relieved. Part of the increase in the cost of
housing relates to the rising prices for electrical work and plumbing, which