Monaco housing crisis: Challenges and progress

Monaco housing crisis remains a continuous source of tension between the government and the National Council. A recent meeting of the state housing allocation committee, held on February 27th and chaired by Pierre-André Chiappori, clearly demonstrated the complexity of this problem. The committee, formed after a public call for applications opened in September 2023, allocated 194 state-owned apartments. The majority of these apartments are located in Block B of the Héméra residence (at the Grand Ida site), while a smaller number of units were returned to circulation after renovation. This significant allocation is expected to partially alleviate current housing needs.

Significant progress Within the National Housing Plan

The Government of Monaco highlights the significant progress made since 2019, when the first National Housing Plan was established. According to government data, a total of 1,173 apartments have been allocated to Monegasque families since then. These figures indicate continuous efforts to address the housing crisis and provide support to Monaco’s citizens.

National Council’s expectations and concerns

Elected officials of the National Council share satisfaction with the progress achieved since 2019, emphasizing their “determination” to respond to the legitimate needs of their fellow citizens. However, they express regret that 40% of submitted housing applications remain unfulfilled. This indicates that, despite significant allocations, the demand for state-owned apartments still outstrips the available supply. The National Council therefore eagerly awaits the presentation of an updated National Housing Plan, in accordance with the government’s promise, as well as the urgent establishment of a State Housing Agency. This agency should centralize and more efficiently manage housing allocation and construction processes.

Future projects and Government commitments

At a public session held last December, an agreement was reached on the realization of two new state housing projects: on Hector Otto Avenue and at Villa Luciole. These projects, along with the anticipated delivery of the large Bel Air and Larvotto Supérieur complexes, should significantly contribute to increasing the stock of state-owned apartments in the coming years.

The Government of Monaco, for its part, has reaffirmed its “full commitment” to resolving the housing issue. It was emphasized that the government will continue with significant investments and the mobilization of all necessary resources to offer new housing opportunities in Monaco in the years to come. Furthermore, a commitment to improving the quality of life for tenants in existing state properties, including renovations and modernization, was highlighted.

Additional context and future challenges

Monaco, as one of the most densely populated and wealthiest states in the world, faces unique challenges in the housing sector. The limited availability of land and high prices in the private market make state-owned apartments crucial for maintaining social cohesion and ensuring affordable accommodation for Monegasque citizens. The pressure on the housing market is further intensified by the continuous population growth and the desire to live in the Principality.

In the future, it will be crucial to monitor the implementation of new projects and the efficiency of the State Housing Agency, should it be established. Further success will depend on the ability of the government and the National Council to continue constructive dialogue and find innovative solutions for the remaining housing challenges.