Housing’s Foundational Role in the Doughnut’s Sweet Spot
The housing crisis facing communities worldwide reflects a fundamental breakdown in how societies organize and distribute this essential human need. Within the Doughnut Economics framework, housing represents a critical component of the social foundation—the minimum standards required for all people to live in dignity and security.1 This analysis examines the housing crisis through the lens of “safe and just space for humanity,” exploring how current housing systems transgress both social boundaries (by failing to meet basic human needs) and planetary boundaries (through unsustainable development practices). This approach emphasizes housing as a critical social foundation, a concept intrinsically linked to the Doughnut’s broader ambition of achieving collective prosperity within ecological limits.12 Indeed, housing security directly impacts health, education, economic opportunity, and community resilience—all essential elements of the social foundation that supports human flourishing.
Housing’s Rollercoaster from Public Good to Hot Property
Housing as a fundamental right has evolved significantly since the post-World War II era.13 The mid-20th century saw unprecedented public investment in social housing across many developed nations, with governments directly providing affordable housing as a public good. However, since the 1980s, there has been a marked shift toward market-driven approaches, with privatization and financialization becoming dominant forces in housing provision.
The emergence of Community Land Trusts (CLTs) has roots in the Civil Rights Movement of the 1960s, beginning with New Communities, Inc. in Albany, Georgia in 1969.45 This grassroots organization sought to prevent displacement of Black communities through collective land ownership, establishing a model that continues to influence housing solutions today.
The financialization of housing accelerated after the 2007-2008 Global Financial Crisis, transforming homes from social goods into investment vehicles.67 This shift has fundamentally altered housing markets, prioritizing returns to investors over affordability for residents.
The Squeezing Walls of Today’s Housing Emergency
The scale of the housing crisis is staggering. Recent data indicates multiple dimensions of housing unaffordability and shortage. More than half of all renters in the United States, specifically over 50%, spend more than 30% of their income on housing, with 12.1 million households spending over 50%.23 Construction activity has experienced a dramatic decline, falling from 4% annual growth in the 1950s to just 0.6% in the 2010s.87 Market conditions have resulted in median home prices increasing by 47% between 2020 and 2024 in many areas.23
Simultaneously, the emergence of the “donut effect” has created complex spatial challenges, with urban cores experiencing population decline as residents relocate to suburban areas.78 Climate change adds another layer of urgency to the housing crisis, with over 60.5 million housing units facing moderate to high risk from climate disasters. Property insurance premiums have increased by 27.7% year-over-year, further straining affordability.23
Forecasting Future Housing Storms and Strains
Projections for housing markets indicate continued strain without significant policy intervention. Construction costs are projected to continue rising, with 14.1% year-over-year increases becoming normalized.23 Migration and population growth will further stress housing supplies, particularly in urban centers.67 Climate resilience requirements will necessitate substantial retrofitting and new construction standards.29 Additionally, demographic shifts, including an aging population and changing household formations, will require diverse housing typologies.37
Technological innovations offer some promise, including prefabricated and modular construction, 3D printing, and mass timber construction. However, these innovations must be deployed within frameworks that prioritize affordability and sustainability over profit maximization.59
Navigating the Steep Climb to Housing Solutions
Key barriers to achieving housing security include several interconnected issues. Market structure problems persist as current housing markets prioritize profit extraction over social need, with institutional investors increasingly dominating ownership.67 Governance fragmentation creates additional obstacles, as complex layers of local, regional, and national regulations often create conflicting priorities and slow response to housing needs.78
The financialization of housing represents a fundamental challenge, as the transformation of housing into a financial asset class has driven prices beyond reach for many households.67 Environmental constraints present significant difficulties in balancing housing development with ecological sustainability.910 Political resistance, particularly NIMBYism (Not In My Backyard) and opposition to density increases, perpetuate housing shortages.36
Unlocking Blueprints for Affordable and Sustainable Homes
Emerging solutions demonstrate pathways toward sustainable, equitable housing. Community Land Trusts represent one promising approach, as these democratic, community-controlled organizations remove land from speculative markets, ensuring permanent affordability.45 Cooperative housing models, including limited-equity cooperatives and co-housing arrangements, provide ownership opportunities while maintaining affordability.59
Renewed investment in public and social housing offers another avenue, with projects like Peace Village Co-op demonstrating innovative shared-equity approaches.59 Innovative construction methods, including factory-built housing, mass timber construction, and modular approaches, can reduce costs while improving quality.93 Integrated community development that includes housing projects with community spaces, local businesses, and sustainable infrastructure creates holistic solutions.910
Applying the Doughnut for Socially Just and Ecologically Sound Housing
Housing occupies a critical position in the Doughnut Economics framework, sitting at the intersection of social foundations and ecological ceilings.1 The model provides a comprehensive framework for reimagining housing systems. Social foundation requirements include access to safe, secure, and affordable housing for all; housing quality that supports health and wellbeing; community connectivity and social networks; and economic security through housing stability. Ecological ceiling considerations encompass sustainable construction materials and methods; energy efficiency and renewable energy integration; land use that preserves biodiversity; and water management and waste reduction.
The “safe and just space” for housing exists where these requirements are met without ecological overshoot.19 Current housing systems regularly transgress both boundaries—failing to meet basic social needs while contributing to environmental degradation through sprawl, resource-intensive construction, and inefficient energy use. Community Land Trusts and cooperative housing models exemplify approaches that operate within this safe space, balancing individual housing security with collective ownership and environmental responsibility.459
Building Towards a Future of Homes for All
The housing crisis represents a fundamental challenge to achieving a “safe and just space for humanity.” Current market-driven approaches have consistently failed to provide adequate housing while respecting ecological limits. The path forward requires a paradigm shift toward community-led, democratically controlled housing solutions that treat housing as a human right rather than a commodity.
Key elements of this analysis include: housing security serves as an essential foundation for achieving broader social foundations; market-based solutions alone cannot address the crisis; community-led models offer scalable, sustainable alternatives; integration of social and environmental considerations remains essential; and long-term affordability requires collective ownership structures. The solutions exist; what is needed is the political will to implement them at scale, supported by appropriate financing mechanisms and policy frameworks that prioritize social and ecological wellbeing over profit extraction.