Addressing Philadelphia’s Affordable Housing Crisis through Co-ops

First introduced in New York City in the 1800s, a housing co-op (cooperative) is a building where residents receive a proprietary lease for a unit by purchasing shares in the corporation that owns the building. While a corporation owns the building, an elected board of residents maintains the property, approves new owners, and manages the governing rules

Today, there are approximately 6,400 co-ops in the US consisting of roughly 1.2 million units.

Philadelphia’s Co-op Community

In Philadelphia, there are approximately 17 housing cooperatives (co-ops) across the city quietly housing nearly 100 individuals and families who cannot afford market rent or lack other housing options – without traditional funding or government subsidies. While most community share prices are under $150,000, they often require high assets and cash-only purchases. These requirements limit access for the average working- or lower-middle-class household. Another challenge is that many do not advertise, maintain a website, or use social media. At the same time, they face an uphill battle with rising utility costs, city taxes, maintenance needs, limited funding from shareholders, and a lack of understanding from traditional lenders and housing assistance programs.

Despite these challenges, they have proven to be viable, affordable rental and long-term permanent housing models for intentional, intergenerational communities. One of Philadelphia’s first housing co-ops, Friends Housing Cooperative, was founded in 1952 and is still operating today. Friends is a powerful example of what long-term cooperative housing success can look like. However, co-op housing remains relatively unknown and is wedged between systems built for private landlords and individual homeowners.

While most operate like condo-style communities, three are doing something different.

Founded in 1977, Lipscomb Square Housing Cooperative is facing several complex challenges that stem from a failed partnership with an affordable housing agency that abruptly ended during the pandemic. When the agency left, residents who had been placed there through the partnership were suddenly left without support. Six years later, many are still unable to pay market rent and are unfamiliar with what a housing co-op is or how it operates. At the same time, the board and original shareholders are working hard to rebuild their cooperative community and help newer residents understand that everyone, regardless of how they arrived at Lipscomb, must participate in saving and maintaining the co-op. This combination of financial strain, organizational development, and community education needs has placed enormous pressure on the board and remaining shareholders.

 LeVar F., Lipscomb Square’s new Board President and a second-generation resident shared, “Lipscomb Square has survived many hurdles over the years… But things are slowly turning around for the better. Lipscomb needs [new shareholders] who know how to take care of their homes, people who are focused on being a close-knit community and who look out for one another. This, on top of real sources of funding, would allow Lipscomb to thrive and be a place everyone wants to be a part of.”

Another co-op, currently under development, represents one of the simplest and most accessible co-op housing models: members collectively purchase a single home to share or use as community housing for a specific group, such as artists or students. At the time of this article, this group was denied funding, highlighting the barriers new co-ops face even at the earliest stages.

Single co-op houses are aligned with “Hospitality Houses,” where organizations like the Family Promise of Philadelphia, formerly Philadelphia Interfaith Hospitality Network (PIHN) provide free or low-cost communal housing in the city and surrounding counties. Prior to the pandemic, The Presbytery of New Jersey sponsored an AmeriCorps House for VISTA and AmeriCorps volunteers, Princeton Seminary students, and nonprofit workers. Community members had Housing and Community Agreements in lieu of leases, contributed to the upkeep of the house, and paid a monthly donation to the church.

Community-based housing models offer a blueprint for more inclusive, affordable housing. Their grassroots, “housing first” approach provides housing to vulnerable, underserved populations such as seniors and people with disabilities.

PACA, housing advocates, and co-op housing communities are working to support their neighbors in an economy where 88% of  renters with incomes below $30,00 are severely cost-burdened, spending at least 50% of their income on housing. With the recommended 30% of income going to housing, communities are being priced out of their communities, with rent at $2,221 for a two-bedroom unit.

As one of the least affordable rental markets in the country, Philadelphia faces a growing housing crisis, with about 1,000 people living on the streets and 4,516 individuals and families in shelters – a 6% increase from the previous year.

The Philadelphia Housing Authority (PHA) reports that it has more than 50 developments and manages approximately 4,000 occupied scattered-site housing units. PHA also oversees the Housing Choice Voucher Program, serving nearly 20,000 households, including 10,000 voucher holders currently searching for units and 36,000 people who applied the last time the waitlist opened in 2023.

As of May 2026, PhillyStat360 reported 1,796 affordable units being preserved or under construction and 34,349 subsidized units citywide—413 of which have failed inspection.

An Appropriate Solution?

Housing co-ops provide long-term affordability, prevent homelessness, and create stable communities where residents share responsibility and decision-making. Their success demonstrates that cooperative housing can be a sustainable, resident-led alternative to traditional rentals, condos, or homeownership. Three housing co-ops are currently providing housing, but they need more support.

While a potential solution, co-ops face structural barriers such as financing systems that require a single guarantor, as well as human challenges like stress, limited income, and lack of supportive resources. There are also widespread gaps in understanding cooperative governance.

Shared Capital is currently the only lender that explicitly lends to housing co-ops, leaving most co-ops without access to traditional financing. These obstacles make it difficult for co-ops to operate and grow.

Housing co-ops may vary and change, but they are a proven model used worldwide. Philadelphia lacks the policy protections and funding needed to support them. PACA is providing cooperative education, but with additional funding, it could offer trauma-informed technical assistance, consultants, in-depth community education, and resource referrals. With targeted investment, housing co-ops could become a significant part of the city’s affordable housing strategy.

Philadelphia’s co-ops show that resident-owned, community-focused housing can work without subsidies, government bureaucracy, or red tape, but they cannot scale without intentional policy and investment. LeVar F. from Lipscomb Square said,

“I think housing co-ops are affordable because they provide significantly lower living costs. This includes lower taxes, maintenance, and purchase costs. They can be the answer to the gentrification we see happening throughout the city.”

With consistent support, housing co-ops could become Philadelphia’s signature housing solution – building strong, sustainable communities as iconic as the murals across the city.