What if shared accommodation and cohabitation were one of the solutions to the housing crisis in Luxembourg?

The round-table discussion ‘Access to housing: an ongoing crisis with no solution’, organised by the non-profit organisation Piilux and held on 21 March 2026 during the Festival of Migration, Cultures and Citizenship, featured contributions from politicians (Claude Meisch, Minister for Housing, Bruno Cavaleiro, Deputy Mayor for Social Affairs of the City of Esch-sur-Alzette), economists (Michel-Edouard Ruben), tenants’ advocates (the non-profit organisation Mieterschutz), researchers and other stakeholders in the sector.

Everyone agrees: the housing crisis is becoming more acute by the day in Luxembourg, on a scale never seen before. Having a stable job no longer guarantees that you will be able to find decent housing. The proportion of income spent on housing easily exceeds 30% for many households, and can reach as high as 50% for the most disadvantaged.

As the path to home ownership has become increasingly difficult in recent years, with banks imposing ever-stricter conditions (rising interest rates, higher required deposits) and house prices continuing to rise to an average of €10,000 per square metre, many households are turning to renting, thereby reducing the rental stock.

The government’s efforts to subsidise home purchases (tax credits on notarial deeds, the construction of affordable housing) are not enough to stem the crisis. Luxembourg needs workers and skilled professionals to grow, and the lack of housing is a barrier to this vital workforce, for whom housing is a key factor when choosing where to settle down and build a career.

The population is growing steadily, and the supply of housing falls well short of demand, resulting in a continuous increase in the number of properties for sale and to let. The emergence of the University of Luxembourg some twenty years ago has only exacerbated the problem, as students also need somewhere to live, whilst the supply of on-campus accommodation does not meet demand.

The Minister is talking about building affordable rental housing. But instead of building new properties (it takes years to get a building off the ground, and why do we keep on and on with concrete?), why not make use of the existing housing stock? There are so many houses that remain empty purely for speculative reasons. In other countries, taxes exist to encourage owners to sell or rent out their empty properties. But in Luxembourg, such a measure would be too unpopular.

So what shall we do?

Michel-Edouard Ruben, an economist at Idea (Chamber of Commerce), suggests the possibility of making use of these large, often under-utilised townhouses by introducing shared living arrangements (one floor of the house could be rented out to a family). At MyColoc, we are convinced that part of the solution to this housing crisis lies in making use of existing homes.

In 2013, at MyColoc, we realised there was a shortage of furnished rooms for students and trainees coming to Luxembourg to start their careers. Armed with this insight alone, we entered the shared accommodation market by investing in our first property, the Belvita shared flat (www.colocbelvita.lu), and time has proved us right. Since then, many other players have entered the shared accommodation market (notably ManyMany, Vauban&Fort and Cohabs).

Thirteen years on, it turns out that the market has changed significantly, and those looking to live in shared accommodation are not just students wanting to share an experience abroad with other young people, as in Cédric Klapisch’s film *L’auberge espagnole*. Shared accommodation (or co-living) has become a solution for those who, despite having a job and a comfortable income, still find the traditional rental market out of reach.

At MyColoc, we believe that for several years now, the trend has been towards sharing resources rather than using them exclusively (carpooling, bike-sharing, car-sharing, etc.), and that flat-sharing and cohabitation will continue to grow and become an established part of our lives.

There is enormous potential in assets that are still underutilised.

If you own a house and are wondering what to do with it in the future, you might be part of the solution. Renting it out either partially (*) or in full would not only provide a solution for a student or young professional, but also generate rental income, whilst ensuring your property continues to increase in value thanks to regular maintenance. Would you like to put a figure on your home’s potential? Contact us for a no-obligation valuation.

(*) Renting out part of a property: it is in fact possible to rent out just one floor, or even just one room, as offered by the social enterprise WeConnect, which connects students with older people.