Urban shrinkage, local housing markets and the role of voluntary community organisations

Since the beginning of the crisis in 2007-08 urban shrinkage has hit a large number of Danish municipalities, towns and villages outside the two major metropolitan areas in the country .Abandoned homes, plunging property prices and out-migration are among the major symptoms. As a consequence of that municipalities’ tax income drop and they therefore need to reduce or completely withdraw public services. The aim of the paper is to explore what options, if any, are available to local communities and local governments to counteract these detrimental economic, spatial and social developments? It is discussed why and how communities’ social capital enables voluntary initiatives to grow and if there are options available to local government to encourage and strengthen voluntary community-based organisations. Evidence from two case studies shows a number of successful initiatives by both municipalities and voluntary organizations to strengthen civil society and counteract urban shrinkage. The concluding section includes some policy recommendation.