Impact of social capital in housing cooperatives on housing affordability of middle-income groups in the Netherlands

The Netherlands is facing an urgent housing shortage where the housing market situation in the Netherlands encourages social inequality due to intense competition and housing financialization. It is extremely difficult for middle-income groups to get adequate and affordable housing as their income is higher than the eligibility threshold for social housing and too low to compete in homeownership or the private rental market. Through the new 2015 housing act, the Dutch government allowed housing cooperatives that potentially provide affordable housing for middle-income groups. Despite their potential, housing cooperatives in the Netherlands are still less explored, particularly in the micro-internal and internal-external relationships. Therefore, this research aims to investigate the potential of housing cooperatives as an alternative housing provision for middle-income groups by explaining the impact of embedded social capital on housing affordability for middle-income groups in the Netherlands. First, research is conducted with surveys to collect initial data more quickly and bring in more respondents efficiently. Then, survey results were cross-checked with interviews to dig deeper into members' experiences and get an idea of the actual process. Interviews were also conducted with facilitators in the field of housing cooperatives to get a reliable perspective on social capital and its impact on housing affordability. Results were analysed qualitatively by observing the frequency and pattern of relationship between variables from members' perspectives and experiences. The results show that social capital is found in a housing cooperative through the dimensions and benefits felt by its members. Three social capital dimensions are generated gradually regarding the level of social relations, starting with the cognitive dimension, then structural, and finally relational. Members also experience the benefits of social capital in cooperative housing, where solidarity and access to decision-making processes are the most felt, followed by information and knowledge. Two benefits: access to the decision-making process and solidarity positively affect the housing affordability of the members by lowering the housing costs (utilities and maintenance costs) and non-housing costs (transportation and recreation costs). Members are also satisfied with the housing affordability ratio and cooperative abilities to enable them to reach their housing preferences. Furthermore, housing cooperatives not only have the opportunity to provide affordable housing but also serve the needs of groups with other motivations or specific goals. Recognizing housing cooperatives' potential as an alternative to providing adequate and affordable housing for middle-income groups, members should maintain continuously the social connection that generates social capital, and the government should give more attention and support.