HouseEurope! wants to create incentives that make renovation the new norm. This will boost the renovation market and give new value to what is already there. The goal is to preserve homes and communities, ensure a fairer and more local building industry, save energy and resources, and preserve our memories and stories.
Today, buildings are treated as investments rather than spaces for people to live in. Due to financial speculation, millions of square meters sit empty and ruined or are demolished and replaced: from functioning family homes to abandoned industrial and office spaces. For real estate speculators, every building is up for demolition!
By 2050, we will have demolished 2 billion square meters of existing space in Europe. This is the equivalent of half of Germany's building stock and more than Paris or Berlin in their entirety. Instead, we will have built billions of square meters of new space as a replacement for what was already there. This practice creates social, economic, environmental, and cultural problems as demolition comes with a loss of homes, jobs, energy, and history.
Social Issue = Home Loss
We demolish existing buildings that could comfortably house more than 50 million people, while the harsh reality is that every year, countless people lose their homes due to demolition and rising prices of new construction. There are two unfortunate realities: first of all, existing buildings are most often demolished for no reason other than financial profit. Tenants are evicted because it is more profitable to demolish and build new housing than to renovate or maintain the existing building. Secondly, even if new housing units are built, the original occupants are often unable to return due to the exorbitant increase in costs.
Economic Issue = Job Loss
In the building industry, mainly big players benefit from demolition and new construction. Small and medium-sized businesses have the opportunity to thrive through renovation and adaptation projects. Ninety-two percent of architecture offices in Europe consist of one to five employees. With a renovation rate that needs to triple in order to house all EU citizens, these smaller practices would financially benefit from the increase in project opportunities.
Ecological Issue = Energy Loss
Our built environment carries a substantial embodied energy, encompassing countless tons of CO2. With each building we tear down, we waste all of the energy already invested in its construction. The building sector is responsible for one degree (out of three degrees) or one-third of CO2 emissions. Collectively, buildings in the European Union alone are responsible for a staggering 36% of greenhouse gas emissions. But the problem goes beyond emissions.
Cultural Issue = History Loss
Demolition erases the historical and cultural significance embedded in buildings, resulting in a loss of heritage and identity for communities. By preserving and renovating existing structures, we maintain a tangible connection to our past and cultural heritage.
The current system is designed to demolish and build anew. This speculative approach is driven by a lack of regulations and incentives that favor new construction. Existing buildings are replaced with high-end developments, putting profit over people. However, the relation between speculation and redevelopment, with the needs of communities and ecosystems, is complex. While development is essential for our society, it's equally crucial to ensure that it doesn't come at the expense of existing communities, local economies, our planetary ecosystem, and history. Our aim is to shed light on the harmful practices of speculative real estate development that impact each and every one of us.
There are multiple reasons for financial real estate developers to demolish existing buildings.
Reason 1: Profit Over Community
The lure of significant financial gains can sometimes overshadow community needs or the social value of existing structures. Buildings that serve as community hubs or affordable housing might be sold and demolished to make way for luxury apartments, malls, or offices, altering the social fabric of neighborhoods.
Reason 2: Gentrification and Renewal
As neighborhoods become trendier or targeted for urban renewal, there's a practice of replacing older structures, sometimes with historical or cultural value, with new developments that cater to a wealthier demographic. This can push up property values in the area, often at the expense of long-standing communities.
Reason 3: Perceived Modernity
In some cases, new constructions are perceived as more attractive or modern compared to older buildings, even if the latter are structurally sound and functional. The drive for modernity and the desire to attract a certain demographic or clientele can prompt developers to demolish and rebuild.
Reason 4: Land Value vs. Building Value
Often in prime areas, the value of the land surpasses the value of the building itself. An older building on a plot may generate less income or have a lower perceived value than the potential new structure that could replace it. The speculative vision often revolves around demolishing existing buildings to make way for denser, taller, or more modern constructions that promise higher financial returns.
Reason 5: Tax Incentives and Breaks
In certain jurisdictions, there are tax incentives associated with new constructions or developments, making it financially advantageous for owners to demolish and rebuild. To capitalize on depreciation benefits, functioning buildings are often demolished for new, sometimes smaller, constructions. These new assets enable owners to optimize taxes through their portfolios. This strategy prioritizes financial gains over space utility.
Reason 6: Speculative Bubbles
and Risk When real estate markets heat up, a sort of herd mentality can take over, where everyone wants a piece of the 'next big thing.' In such environments, even properties that are functional and in use can become targets for acquisition and redevelopment, driven by the speculative belief in potential future profits.
The building industry’s impact on our lives is significant, and it is therefore urgent that it becomes part of our daily conversations. It stands as one of the most profitable and vital markets within the EU, yet it is also one of the most significant contributors to CO2 emissions and energy consumption. According to the European Commission, buildings are responsible for approximately 36% of CO2 emissions and 40% of total energy consumption in the EU, representing 35% of energy-related EU emissions in 2021. Moreover, the sector generates over 35% of the EU's total waste, highlighting its substantial environmental footprint.
Yet, we maintain a system in which buying something new is cheaper than caring for the old. This system prioritizes financial profit over the well-being of the people and the planet. A system in which renovation and adaptation have taken a backseat to demolition and new construction.
This may have worked in the past, when resources seemed in endless supply and new construction was cheaper, faster, and easier than dealing with existing buildings. But current material and energy shortages show us that this system no longer works. Therefore, the building sector is pivotal in the social and ecological transformation, and all the parties involved – from the real estate sector to architects to the construction industry – must recognize the risks of demolition and the potential of renovation.
↘︎ Demolition destroys homes and displaces communities.
↘︎ Demolition destroys jobs and prioritizes profit over people.
↘︎ Demolition destroys materials and wastes energy.
↘︎ Demolition destroys memories and harms neighborhoods.
↗︎ Renovation saves homes by keeping prices stable.
↗︎ Renovation saves jobs by boosting local markets.
↗︎ Renovation saves energy by preserving what is there.
↗︎ Renovation saves history by valuing the existing.
The renovation of public and private buildings presents enormous potential. The goal of EU member states to renovate our existing buildings by 2050 can be translated into tangible numbers: Currently, only 25% of the European building stock has been renovated, meaning that 75% of the work is still ahead of us. At the current annual renovation rate of 1%, it would take three times longer than we have to reach the agreed goals. Therefore, we face a reality: we need to triple the renovation rate to reach our goals!
To do so, we must recognize the value of existing buildings and prioritize their renovation. Renovation is a great answer to ensure affordable living spaces, support small and medium-scale businesses, reduce CO2 emissions, and preserve memories and communities. This transformation takes time, but we have come up with a simple yet specific roadmap: Preservation, Adaptation, Renovation, Transformation.
Preservation: Reuse, don't demolish!
We call for the preservation of existing buildings and the energy already invested in them. By doing so, we can save valuable resources and maintain social and cultural values. Our aim is to prioritize reuse over demolition, taking the first step towards achieving affordable living spaces for all.
Adaptation: Adapt, don't abandon!
We call for the adaptation of existing structures and underused spaces. In doing so, we can give Europe's building stock a new purpose and narrative, reframing the perception of value in what already exists. We aim to adapt buildings that have fallen out of use, thereby invigorating the potential of the existing building stock.
Renovation: Build for the future!
We call for the renovation, repair, and care of existing buildings. This reduces waste and CO2 emissions. Our aim is to renovate in a future-proof way, meaning we need to (re)build in a long-lasting way, limiting the unnecessary use of additional material and new construction now, and in the future.
Transformation: Shift the Value!
We call for the transformation of existing structures in a social, environmental, and economic sense. Our aim is to implement policies that ensure equity, resilience, and community-building. We need new cultural narratives: from viewing spaces as commodities to seeing them as necessities. Imagine you apply for a bank loan for renovation. Banks need to reinsure three times more for a renovation than for a new building. Interest rates go up and people are almost forced into building anew.
We are in a vicious cycle. So, how do we achieve a shift and make a change in reality? The EU has the power to change this.
Many people, groups, and organizations are already engaged in the social and ecological transformation of our buildings. We at HouseEurope! want to support these local and national initiatives and bring them together on a European level.
This is why we launched the European Citizens' Initiative (ECI). An ECI is a tool for direct democracy that enables citizens across the EU to propose new or improved legislation. If one million EU citizens from at least seven countries support a cause, the European Commission must consider the proposal and form a working group. This process allows citizens to have a direct voice in shaping EU policy and addressing critical issues.
Together, we aim for new EU laws that prioritize renovation and adaptation over demolition and reconstruction. To achieve our goal, we need your support, so sign up for the newsletter, support the initiative, and spread the word! Together we can house Europe!