The challenge of Affordable Housing in new urban development projects: : The case of Nyhamnen

Abstract: The notion of Affordable Housing became widespread in the 1980s in North Americaand Europe, when the growing gap between rich and poor manifested itself inthe housing system. In Malmö today, the monthly rent for new produced tenanciescorresponds to about 70 percent of the average citizens disposable income per month.Affordable Housing is important because it improves the quality of life by leading tobetter health, financial stability, security, adequate jobs and population diversity. This thesis gives light to the current problem of Affordable Housing shortage and housinginequality, that is affecting certain groups. Those groups are the many young adultswho can’t move away from home due to financial reasons, or aspects such as divorce,migrancy, bad credit or debts that prevent them from getting a lease in Malmö. The thesis investigates whether Affordable Housing can meet the urgent need of housingfor low-income earners, and to activate a large new urban development project calledNyhamnen, set to be completed by 2050. Nyhamnen is located in the old harbor, indirect contact with the waterfront. The municipality of Malmö is promising a socially,economically, and environmentally sustainable, mixed-use urban district. Mixed-usezoning creates conditions enabling individuals from varied socioeconomic backgroundsto live together, which corresponds to Malmö’s large diversity, but this can only occurif individuals can afford to live in the new development project. Previous research shows an urgent Affordable Housing crisis that affects people’squality of life, and the word ‘’crisis’’ is not sufficient enough to describe the actualdamage being done. There is a lack of previous research on Affordable Housing inthe context of new development projects and by a waterfront, therefore this study aimsto highlight that gap. The thesis consists of a case study and empirical data in the formof an interview study, findings, discussion and conclusions. Semi-structured interviewswere performed with managers and officials at various companies to investigate theincentives that exist for Affordable Housing today. The conclusions of the study presents a strategy of providing 25% tenancies and 75%condominiums in Nyhamnen, which could both be cost effective and strengthen socialsustainability in the new district in the future. Nyhamnen will provide Malmö with 9000new homes and if 25% of these would be tenancies with reasonable rents, it would be2250 affordable tenancies. To accomplish that strategy in Nyhamnen, cooperationbetween developers, architects, officials, the municipality of Malmö, politicians, andthe Swedish state has to take place.