According to data from the Central Statistical Office (GUS), in 2024, a total of 199,931 apartments were completed. However, only 1,914 of them, or less than 1%, were municipal housing units. What challenges does municipal housing face in Poland? And what does its future look like?

What Is Municipal Housing?

Municipal housing is a branch of residential construction aimed at meeting the housing needs of residents by local municipalities. Since municipal housing is owned by the municipality, access to it is restricted. To qualify for a municipal apartment, an applicant must submit a request and meet specific criteria, particularly income-related—their income must be high enough to guarantee rent payments but not too high.

Another way to define municipal housing is from the perspective of potential tenants. For many people, a municipal apartment is the only available option, as purchasing a property or renting on commercial terms is beyond their financial reach.

Current State of Municipal Housing in Poland

The Central Statistical Office (GUS) collects and publishes data on residential construction in Poland. How does municipal housing look in numbers? The answer can be found in the report "Residential Construction from January to December 2024", which states that:

• In 2024, a total of 1,914 municipal apartments were completed, including 127 in December.

• In December 2024, construction of 612 municipal apartments began—nearly 19 times more than in December 2023.

Considering the demand and long waiting lists, the number of municipal housing projects in Poland remains low. However, there are signs of change, as suggested by the December 2024 results.

Challenges in Municipal Housing Development

Local governments, responsible for constructing municipal housing, are reluctant to start new projects. The list of reasons is long, but the main challenges include:

• Limited land availability – The lack of suitable plots is one of the main reasons why projects cannot begin—municipalities must first acquire appropriately sized land. A potential solution is modular municipal housing, as modular buildings can be constructed on small or irregularly shaped plots.

• Financial constraints – Municipal budgets often lack sufficient funds to construct modern municipal housing that meets contemporary quality and living standards. Again, modular construction presents a solution, as this modern technology optimizes costs while delivering high-quality housing. Example: Modular construction as an ideal solution for KPO-funded investments.

• Rent payment arrears – Some municipal housing tenants struggle with rent payments, making municipalities perceive municipal housing development as a financial burden. However, modern municipal apartments can help address this issue, as they are affordable to maintain. Innovative construction technologies significantly reduce energy and heating demand, lowering operational costs.

Examples of Modern Municipal Housing Investments in Poland

Municipalities recognizing the benefits of owning their housing stock often look for alternatives to traditional construction methods. A great example is modular construction.

What Is Modular Construction?

A modular building is a structure built using prefabricated modules with a wooden load-bearing frame. Unihouse has already completed several municipal modular buildings across Poland. Where?

Examples of Modular Municipal Housing in Poland:

• Kamienna Góra – A 24-unit municipal building was constructed. The building has four floors—one reinforced concrete floor and three modular floors. Completion time: Less than 12 months, with 3.5 months for module production in the factory and 5 days for on-site assembly.

• Małkinia Górna – A modular municipal building in Małkinia Górna was built under a public-private partnership. The four-story building contains 40 apartments ranging from 35 to 40 m², constructed using 33 prefabricated modules.

The Future of Municipal Housing in Poland

Can the situation of municipal housing in Poland improve in the coming years? There is reason for optimism—not only due to modular construction, which enables the rapid delivery of energy-efficient, comfortable, and modern buildings, but also due to the record budget of PLN 5 billion allocated for housing. A significant portion of this budget will be directed toward municipal housing. Additionally, municipalities can secure funding through the Bank Gospodarstwa Krajowego (BGK) housing programs.

The use of innovative, eco-friendly technologies will make it easier to obtain funding for municipal housing projects and reduce the operating costs of new buildings. This benefits both municipalities (as investors) and future tenants.