Lost hybridity? Trajectory, path dependence and hybridization pathways of cooperatives in the provision of affordable housing in Milan (Italy)

Housing cooperatives (HCs) represent a “third way” between state and market for providing affordable housing. HCs provide housing according to the mutualism principle – based on social need by their members (and not on speculative expectations) – usually at prices or rents corresponding to the mere costs and with good qualitative standards. Considering the importance of providing affordable housing as a societal challenge, the article explores the trajectory of HCs in Milan, linking it to the (national and local) policy and market framework. Italy, and especially Milan, has a longstanding tradition of HCs. They were born around 1870, upscaled by the first public housing law in 1903 and later supported by planning instruments. Locally founded HCs have been important in providing affordable housing both for rent (“undivided” HCs) and in homeownership (“divided” HCs) in growing Italian cities. However, the trajectory and role of HCs in Italy and Milan have changed significantly by the time, linked to path dependence (political, cultural and material heritage and tradition of HCs) and critical junctures (shifts in national housing policies, local planning/land use instruments and market conditions). This led to certain pathways of “hybridization” – the integration HCs in the housing welfare mix – or, as I argue, to a “lost hybridization” for HCs in Italy: the lost opportunity of integrating HCs in public policies for providing affordable housing. The article uses a neoinstitutionalist approach to policy analysis – with the connected concepts of path dependence and critical junctures – (Sorensen, 2015) and applies process tracing (Trampusch & Palier, 2016) and the concept of “state-directed hybridity” (Mullins et al., 2017) to the analysis of the trajectories and hybridization pathways of two longstanding Milanese HCs through grey literature and interviews. The article aims to contribute to the literature on HCs by: (i) tracing their trajectory and role in Italy and Milan concerning organization/governance, housing stock, and hybridization; (ii) relating it to the national and local housing policies and culture, highlighting different hybridity mechanisms, causalities, and implications within their trajectory; and (iii) identifying present challenges and opportunities for HCs to provide affordable housing in a mutualist way.