Denmark’s co-operative housing system offers tenants a sustainable option

Sweden has a similar system, and, same as Denmark, prices for such shares are now unregulates. So they are also subject to the rise in housing prices.

Furthermore, when these cooperatives are built, a big part of the cost is covered with debt that is left within the association itself, and covered with a monthly fee. So the amount of leverage is even larger than that of the mortgage, and thus very sensitive to interest rate changes. Also, this monthly fee is usually set to an unsustainably low value for the first year to attract buyers, which makes the future cost of ownership even more unpredictable.

Of course, no one cares about all this since (i) renting is often not an option, as waiting times for a rental contract in big cities are 3-15 years, and (ii) house prices are rising, so the appreciation of the shares will handsomely cover all the interest payments until resale.