the-barcelona-chronicles:-defining-affordable-&-social-housing

The Barcelona Chronicles: Defining Affordable & Social Housing

After capturing the attention of the British Columbians with the broad strokes of the Barcelona Housing Policy 2015-2023, Eduard Cabré Romans quickly shifted to the nitty gritty, starting with a fundamental question: What exactly is “affordable” and “social “housing”?

In British Columbia, “affordability”

is typically defined as housing costs not exceeding 30% of pre-tax household income. However, this guideline becomes increasingly unclear the more one examines it. Different organizations use varying benchmarks. For example, the Province’s Defining Affordability page, for example, has visitors leaving with more questions than answers, stating:

“Many organizations, programs, and even mortgage lenders consider housing affordable if it costs no more than 30% of household income before taxes.” This is followed by “This measure is a useful tool that can be used when choosing a place to live, but housing affordability is often based on a combination of factors, and every situation is different.”

What does that mean? What “households” are the target? What are the “factors” referred? How are “situations” different? 

Let’s look elsewhere. BC Housing uses the Housing Income Limits (HILs) for their calculations, which sounds promising at first. But these figures are often misaligned with current data. For example, according to the document the average Canadian who earning just over $57,000 per year, would struggle to afford a one-bedroom apartment

Complicating matters, HILS are based on figures established by yet another organization, the Canadian and Mortgage Housing Corporation (CMHC) whose site is equally vague. Presumably, these numbers are tied to the Rental Market Survey, though the exact calculation method remains unclear.

The reality is that there is no universally agreed-upon definition of “affordable housing,” and few understand how the baseline figures are derived. The housing field is flooded with a lack of transparency, with many organizations creating their own baselines legitimized through consultant reports.

Moreover, this lack of clarity makes it difficult for the average person to understand. Most simply want to know: How much will rent be in an “affordable housing” project?

This vagueness opens the door to manipulation—something that became very evident recently as a taxpayer-subsidized ‘affordable’ rental project in Vancouver’s Kitsilano targeted a household income range between $130,000 and $190,000 a year.

In contrast, Barcelona avoids such ambiguity by distinguishing between two housing categories—affordable and social housing—each with clear definitions and purposes.

Affordable Housing

In Barcelona, “affordable housing” refers to residences that are accessible to middle- and lower-income households at prices—rent or sale—that are 60%-80% below the market average rental rate. This type of housing is regulated by law as “Officially Protected Housing”—Vivienda de Protección Oficial—and can be developed both by public and private entities. Eduard explained that under current market conditions, rents for such housing must range between €600 and €800 per month, compared to the market average of €1,200 per month for new rentals.

The cost of these units is determined based on income thresholds and maximum rent or sale price limits for their target population. The primary goal is to offer housing options that are affordable for those who cannot pay market rates but do not qualify for social housing.

Barcelona’s policy allows affordable housing to be developed through several mechanisms, such as inclusionary zoning (like the “30% Measure,” which will be described in another article), subsidies, and incentives for private developers to include affordable units in their projects.

Social Housing

Social housing, on the other hand, is designed for the most vulnerable and low-income individuals and families. It is typically owned and managed by public agencies or non-profit organizations.

Eligibility for social housing is strictly based on income, family composition, and other socio-economic factors. Applicants must meet these criteria to qualify. Rent is calculated as a percentage of household income, ensuring long-term, stable housing solutions for those who cannot afford even the lowest-tier affordable housing.

Social housing often includes additional support services to help residents maintain their tenancy and improve their quality of life. It is funded through public resources, including municipal budgets, national subsidies, and occasionally, European Union support.

Rents in social housing typically range from €200 to €500 (or less) per month. Households also receive a voucher funded by National, Regional, or Local governments—depending on the case—to cover the remaining costs.

So, while both affordable and social housing address below-market housing needs, affordable housing serves a broader spectrum of low- to middle-income households, while social housing focuses on the most vulnerable populations and includes support mechanisms.

In both cases, there is no negotiation. Projects must meet the defined criteria for rent levels to qualify as “affordable” or “social” housing.

Barcelona’s success is rooted in the clarity of its definitions. There is no ambiguity. Developers understand the requirements and collaborate with public institutions to meet the criteria. The public also knows what each category means, who qualifies, and what to expect regarding rent. This clarity stands in contrast to the confusion surrounding the housing “affordability” policy in British Columbia.

Now, I am sure readers are still scratching their heads from Part 3, wondering how Barcelona can provide affordable social housing while holding the market suspiciously at arm’s length. With these definitions understood, Cabré Romans was ready to delve deeper into the housing supply side of the equation…

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Other pieces in The Barcelona Chronicles:

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Erick Villagomez is the Editor-in-Chief at Spacing Vancouver and teaches at UBC’s School of Community and Regional Planning.

The post The Barcelona Chronicles: Defining Affordable & Social Housing appeared first on Spacing Vancouver.

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