Market Failure in the Context of Social Housing Provision as a Service of General Economic Interest

The project aims to develop a certified method serving for identification of local housing market failure and its quantification. The method will be applied in municipal applications for state subsidies on social housing investments as a service of general economic interest. Market failure is defined as an inability of household to get adequate (by quality and size), financially affordable and spatially integrated housing under standard market conditions. The employment of the proposed methodology should guarantee the effective use of public sources for social housing investments; i.e. the subsidies will (1) fit with EU rules, (2) optimise the public expenditures, and (3) will not create housing market distorsions.