What if flatsharing and co-living were part of the solution to Luxembourg’s housing crisis?

The roundtable “Access to Housing: A Permanent Crisis Without a Solution”, organized by the non-profit Piilux and held on March 21, 2026 during the Festival des migrations, des cultures et de la citoyenneté, brought together various stakeholders: politicians (Claude Meisch, Minister of Housing, and Bruno Cavaleiro, Alderman for Social Affairs in the City of Esch-sur-Alzette), economists (Michel-Edouard Ruben), tenant advocates (Mieterschutz), researchers, and other actors in the sector.

A widely shared observation

All participants agreed: the housing crisis in Luxembourg is worsening day by day, on a scale never seen before.

Having a stable job no longer guarantees access to decent housing. The share of income that must be devoted to housing easily exceeds 30% for many households and can reach up to 50% for the most disadvantaged.

Access to homeownership has become increasingly difficult in recent years, with stricter conditions imposed by banks (rising interest rates, higher down payments) and purchase prices that continue to rise, reaching an average of €10,000 per square meter. As a result, many households are turning to renting, further reducing the availability of rental housing.

Growing pressure on the rental market

Government efforts to subsidize homeownership (tax credits on notary deeds, construction of affordable housing) are not sufficient to curb the crisis.

Luxembourg needs labor and talent to grow, and the lack of housing is becoming a barrier for this workforce, for whom housing is a key factor when choosing where to settle and build a career.

The population continues to grow, while housing supply remains far below demand, leading to a continuous increase in prices for both sales and rentals.

The emergence of the University of Luxembourg about twenty years ago has further intensified the problem, as students also need housing, while on-campus supply does not match demand.

Rethinking the approach

The Minister speaks about building affordable rental housing. But what if, instead of building (which takes years and raises the question of continued land consumption), we made better use of existing buildings?

There are many houses that remain empty purely for speculative reasons. In other countries, taxes exist to encourage owners to sell or rent out vacant properties. In Luxembourg, however, such measures would be considered too unpopular.

So what can be done?

Economist Michel-Edouard Ruben, from Idea (Chamber of Commerce), suggests the possibility of making use of large bourgeois houses that are often underutilized, through cohabitation (for example, renting out one floor of a house to a family).

At MyColoc, we are convinced that part of the answer to this housing crisis lies in making better use of existing homes.

The beginnings of MyColoc

In 2013, we realized there was a lack of furnished rooms for students and interns coming to Luxembourg to start their professional lives.

With this simple intuition, we entered the flatsharing market by investing in our first property, the Belvita shared house (www.colocbelvita.lu). Time has proven us right.

Since then, many players have entered the flatsharing market (ManyMany, Vauban&Fort, Cohabs, among others).

A changing market

Thirteen years later, the market has evolved significantly. People looking for shared housing are no longer only students seeking an international experience with other young people, as portrayed in the movie L'auberge espagnole by Cédric Klapisch.

Flatsharing (or co-living) has become a solution even for people who, despite having a job and a comfortable income, cannot access the traditional rental market.

A broader trend

At MyColoc, we believe that for several years now, there has been a shift toward sharing rather than exclusive ownership (carpooling, bike sharing, car sharing, etc.).

Flatsharing and cohabitation are therefore likely to continue growing and becoming an integral part of our lives.

A largely untapped potential

There is a huge potential in underutilized properties.

If you own a house and are wondering what to do with it in the future, you may already be part of the solution.

Renting it partially (*) or entirely would both provide housing for a student or young professional and generate rental income, while ensuring that your property continues to increase in value thanks to regular upkeep.

Would you like to assess the potential of your house? Contact MyColoc for a no-obligation evaluation.

(*) Renting partially: it is indeed possible to rent out just one floor or even a single room, as proposed by the social impact company WeConnect, which connects students with elderly people.