Some countries fixed their housing problems—so why hasn’t America?
Housing shortages, skyrocketing rents, and unaffordable home prices have made stable housing feel out of reach for millions of Americans. While policymakers debate solutions, other countries have already tackled similar crises with innovative policies, strong government action, and creative urban planning. These nations prove that housing doesn’t have to be a luxury—it can be a right, an investment in the economy, and a foundation for stable communities.
The U.S. isn’t the only country to struggle with housing affordability, but it is one of the few that hasn’t implemented large-scale, lasting solutions. Meanwhile, countries across Europe, Asia, and even South America have turned things around with bold policies that put people before profit. Whether it’s mass public housing, rent control, or incentives for affordable construction, these 10 countries have found ways to make housing work—and their successes offer important lessons America can’t afford to ignore.
1. Singapore built one of the world’s most successful public housing systems.
Singapore didn’t wait for the free market to solve its housing crisis—it took control. Nearly 80% of the country’s residents live in government-built housing through the Housing and Development Board (HDB), which provides high-quality, affordable apartments for citizens, as reported by Abhas Jha at World Bank Blogs. Unlike traditional public housing, these flats can be purchased, allowing residents to build equity over time.
The key to Singapore’s success is its mix of strict government planning and incentives for homeownership. The government subsidizes purchases, ensures a steady supply of new homes, and prioritizes mixed-income communities to prevent the segregation and decay that often plague public housing. With long-term affordability baked into the system, Singapore proves that large-scale government intervention can create sustainable housing solutions.
2. Vienna keeps rent low by controlling the housing market.
Austria’s capital, Vienna, has one of the most successful affordable housing models in the world, according to Philip Oltermann at The Guardian. Nearly 60% of its residents live in social housing, a mix of city-owned apartments and nonprofit cooperatives that keep rents affordable. Unlike in many cities, these apartments aren’t limited to low-income tenants—middle-class families also benefit, ensuring long-term affordability across income levels.
Vienna’s government plays a direct role in land development, preventing private investors from driving up prices. By keeping rent regulations in place and constantly reinvesting in new construction, the city has maintained affordability without sacrificing quality. The lesson? Housing doesn’t have to be a high-profit industry—if the government prioritizes affordability, communities thrive.
3. Japan solved its housing crisis by making construction easier.
Japan took a different approach to housing affordability: it removed the red tape. Instead of restricting new developments, the country streamlined building regulations, making it easier and cheaper to construct new homes. As a result, Tokyo—one of the world’s biggest cities—has remained surprisingly affordable compared to other global capitals, as stated by Binyamin Appelbaum at The New York Times.
By allowing high-density development, Japan ensures there’s always enough housing supply to meet demand. Strict zoning laws, which often limit construction in the U.S., don’t exist in the same way in Japan. This means developers can build as much as they need, keeping prices stable and preventing the extreme shortages that drive up costs elsewhere.
4. Finland ended homelessness by providing housing first.
Instead of making homeless people jump through endless hoops, Finland took a radical approach: give them housing first, no conditions attached. The Housing First model recognizes that stable shelter is the foundation for solving deeper issues like unemployment and mental health struggles.
This approach has nearly eliminated homelessness in Finland. Once people have a roof over their heads, they can focus on finding jobs, getting medical care, and reintegrating into society. Unlike in the U.S., where temporary shelters and transitional programs dominate, Finland’s system treats housing as a right, not a reward. The result? Long-term stability and a drastic reduction in homelessness.
5. Germany controls rent increases to keep housing affordable.
Germany prevents rent from spiraling out of control through strict tenant protections and rent control policies. In cities like Berlin, landlords are heavily restricted in how much they can increase rent, and many apartments fall under long-term affordability regulations.
The German system gives renters significant rights, including automatic lease renewals and protections against unfair evictions. The country also invests heavily in nonprofit housing cooperatives, ensuring that a large portion of the rental market remains outside corporate control. While not perfect, Germany’s model keeps long-term affordability in check, proving that rent control can work when properly enforced.
6. The Netherlands invested in social housing for all income levels.
Social housing in the Netherlands isn’t just for low-income residents—it’s for the middle class, too. The Dutch government ensures that around 30% of the country’s housing remains in the hands of nonprofit housing associations, which offer below-market rents and long-term security.
By integrating social housing into all neighborhoods rather than isolating it, the Netherlands prevents the stigma and neglect that often plague public housing projects elsewhere. Combined with pro-construction policies that encourage new development, this approach creates a steady supply of affordable homes for people at all income levels.
7. Switzerland prioritizes cooperative housing to keep costs low.
Switzerland’s housing cooperatives offer an alternative to private market rent hikes. These nonprofit housing associations own and manage a significant portion of apartments, ensuring stable rent prices while reinvesting profits into maintaining quality housing.
In cities like Zurich, nearly a quarter of the rental market is controlled by cooperatives, giving tenants a stable, affordable place to live without worrying about drastic rent increases. Instead of relying solely on government intervention, Switzerland uses community-driven solutions to maintain affordability.
8. Canada’s housing initiatives focus on affordability and supply.
Canada has experimented with various housing solutions, from rent control to public housing investments. In cities like Vancouver and Toronto, the government has expanded affordable housing programs, offered first-time homebuyer incentives, and increased support for non-market housing developments.
One of Canada’s key strategies is increasing supply by encouraging high-density development in urban areas. While the country still faces housing challenges, its focus on expanding options—rather than just regulating prices—shows that a combined approach can help balance affordability with market growth.
9. Sweden keeps public housing strong with government support.
Sweden’s housing model ensures that affordable options remain available to everyone, not just the poorest residents. The country’s public housing system is well-funded, well-maintained, and designed to compete with private rentals, keeping the overall market stable.
Rather than letting public housing deteriorate, Sweden invests heavily in modernizing and maintaining its units. This prevents the cycle of decay and neglect that often occurs in underfunded public housing projects elsewhere. With a strong commitment to long-term affordability, Sweden proves that public housing can be a viable solution for generations.
10. South Korea controls housing bubbles with strict regulations.
South Korea has aggressively tackled housing price surges by regulating speculation and increasing the supply of affordable apartments. The government imposes heavy taxes on real estate investors who buy up properties and restricts foreign ownership to prevent market manipulation.
Seoul, one of the world’s largest cities, has maintained a relatively stable housing market by ensuring that new construction keeps pace with demand. The country’s proactive policies have kept housing prices in check, showing that government intervention can prevent the kind of runaway real estate bubbles seen in other parts of the world.