The housing crisis has been preoccupying politicians and residents in Luxembourg for years. In addition to global phenomena such as the increasing commodification of housing and the financialization of the real estate market, there are additional context-specific factors that are driving the country’s property price development and thus intensifying the housing crisis. Among these factors, the rising demand for housing linked to economic growth in conjunction with the geographical size of the country creates a unique situation within Europe, which is reflected in comparatively high housing costs. The disproportionate increase in housing costs compared to household income is symptomatically leading to a housing crisis. Consequently, the responsibility of the public sector in housing provision is also growing. However, in Luxembourg, where about one-tenth of the land available for residential construction is owned by the public sector, the government has limited influence and little power to act on the housing market. The inconspicuous state presence in the housing supply in Luxembourg can be explained by a tradition of housing policy. It consists of prioritising access to individual home ownership as the primary instrument against housing crises over the construction of social housing or the regulation of the rental housing market. The tradition originated in the country’s first housing policy measure to alleviate the housing shortage caused by industrialisatio and today results in only two percent of the existing housing stock being owned by the public sector. The remaining housing can be attributed to the private housing sector. This thesis explores the agency of a third housing sector in the creation of a long-term affordable housing stock. Its definition and its necessity derive from the limitations of the two existing sectors: the private sector, in the liberal age, is increasingly becoming a site of negotiation for financially motivated actors who no longer see residential real estate as a shelter for the ...