About this challenge
Hungary
Challenge description
Access to adequate and affordable housing has become one of the most urgent urban and social challenges in Budapest’s 18th District. Rapidly rising housing prices, an ageing and inefficient housing stock, and growing social disparities have placed increasing pressure on low- and middle-income households. At the same time, homelessness and housing insecurity continue to affect the district’s most vulnerable residents. The central challenge is to ensure that every citizen has access to safe, affordable, and decent housing conditions, and that existing households can live in healthy, energy-efficient, and socially sustainable environments.
The 18th District has already launched several initiatives related to social inclusion and neighbourhood renewal, yet housing affordability and quality remain major concerns. A significant portion of the district’s residential buildings were constructed several decades ago and require renovation to meet modern energy efficiency, health, and safety standards. Private rental prices have sharply increased, while the availability of affordable and social housing options has not kept pace with demand. The municipality currently manages a portfolio of social housing units and has initiated pilot programmes for energy-efficient renovation, vacant property reuse, and targeted support for vulnerable groups, including young families and the elderly. However, there is a recognised need to strengthen institutional capacities, introduce innovative financial and governance models, and develop integrated approaches that combine housing policy with social services, employment support, and urban regeneration. The City-to-City Exchange will support the development of a Local Housing Action Framework that links affordability, energy efficiency, and social sustainability in a single strategic vision.
The 18th District has already launched several initiatives related to social inclusion and neighbourhood renewal, yet housing affordability and quality remain major concerns. A significant portion of the district’s residential buildings were constructed several decades ago and require renovation to meet modern energy efficiency, health, and safety standards. Private rental prices have sharply increased, while the availability of affordable and social housing options has not kept pace with demand. The municipality currently manages a portfolio of social housing units and has initiated pilot programmes for energy-efficient renovation, vacant property reuse, and targeted support for vulnerable groups, including young families and the elderly. However, there is a recognised need to strengthen institutional capacities, introduce innovative financial and governance models, and develop integrated approaches that combine housing policy with social services, employment support, and urban regeneration. The City-to-City Exchange will support the development of a Local Housing Action Framework that links affordability, energy efficiency, and social sustainability in a single strategic vision.
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This city is looking for
Through the City-to-City Exchange, Budapest’s 18th District seeks to learn from European cities that have successfully tackled similar housing challenges through comprehensive local housing strategies and social innovation. The District is particularly motivated to engage with peers that have implemented “housing-first” models, developed cooperative or community-led housing projects, or designed energy-efficient refurbishment programmes with a strong social dimension. Learning from these cities would support the district in building a balanced housing ecosystem that simultaneously promotes affordability, sustainability, and inclusion.The District’s main learning interest concerns how municipalities can combine housing policy with broader social and environmental objectives. This includes governance arrangements for inclusive housing management, the design of innovative funding instruments to stimulate affordable housing investment, and the integration of housing policy with social inclusion and urban regeneration frameworks. Equally important is to understand how digital tools and data can support evidence-based decision-making in the housing sector, helping identify needs, measure impacts, and guide policy adjustments. The District also wishes to explore participatory models in housing development—particularly approaches that empower residents to take part in the renewal of their own neighbourhoods and to co-create solutions with local government.
City size
Towns (< 50,000 inhabitants)