Housing Matters! – When Affordability Climbed onto the Board Agenda at MIPIM 2024

“A city isn’t competitive if its nurses, teachers and programmers can’t afford to live there.” — Sanna Marin, former Prime Minister of Finland

For most of its 35‑year history, MIPIM has been the place where capital chases yield. In 2024 the conversation finally pivoted: Housing isn’t a side stage anymore; it’s macro‑critical infrastructure. The new Housing Matters! forum drew 1,800 delegates (15 % of total attendance) and put affordability, ageing demographics and decarbonisation on the main programme next to sovereign funds and mega‑projects.

Three insights that mattered

1. Public‑private capital is scaling—fast
   ▸ AXA IM announced a €2 bn Social Housing Impact Fund, targeting 25,000 units across Western Europe by 2030.
   ▸ The European Investment Bank pledged €1 bn in blended finance for retrofit programmes that cut emissions by 60 % per dwelling.
2. Regulation is now an investor magnet, not a hurdle
   • EU Taxonomy “Substantial Contribution” criteria for affordable housing allow green bonds to price 15–25 bp inside conventional corporate spreads. BlackRock’s head of EMEA Real Assets said, “If a project ticks affordability and energy‑efficiency boxes, cost of capital falls by one‑quarter.”
3. Later‑living & co‑living are moving out of the ‘alternatives’ corner
   – Greystar reported 96 % occupancy in its European co‑living portfolio with net effective rents outperforming conventional BTR by 12 %.
   – Legal & General’s Inspired Villages JV is targeting 5,000 later‑living units by 2028, citing healthcare cost savings of £3,500 per resident per year.

Case studies worth watching

• Helsinki’s Cost‑Rent Model: Deputy Mayor Anni Sinnemäki explained how the city’s 30‑year cost‑rent leases keep rents 25 % below market while generating triple‑B rated cash flows. A group of German pension funds is adapting the template for Berlin’s Tempelhof redevelopment.
• Manchester’s Victoria North: UK’s largest regeneration zone (15,000 homes) was showcased as a blueprint for place‑based impact investing; Homes England will recycle land uplift into next‑phase infrastructure.

Takeaway

MIPIM 2024 signalled that investors no longer view affordable housing as philanthropy—it’s an all‑weather asset class aligned with regulatory incentives, demographic tailwinds and ESG mandates. Expect 2025’s deal flow to hinge on who can marry carbon‑light construction with rent‑light balance sheets.