Interview with Mr. Matthew Zerafa, CEO of Malta Housing Authority

Jun 2026 Interview with Mr. Matthew Zerafa, CEO of Malta Housing Authority

As Malta continues to address housing accessibility, the government has set ambitious targets to further reduce the social housing waiting list. Could you elaborate on the goal of reducing the waiting list by 15–20% by 2035 and the key policies, operational challenges and success factors involved in achieving this objective?

Our vision begins with a simple but powerful truth: behind every data point on a waiting list is a family seeking stability, dignity and a better quality of life. We are driven by the urgency to transform uncertainty into security, at scale and at speed. This mindset shapes every decision we take. We do not interpret demand as static figures, but as dynamic human realities: families evolving in structure, aspiration and need. In a world where societal change is accelerating, housing policy must evolve just as quickly.

Within our Vision 2050 framework, Macro Measure 42 sets a clear and measurable ambition: to reduce the waiting list by 15–20% by 2035. Our strategy is not rooted in traditional supply expansion alone, but in system transformation. We are activating underutilized assets within the private market through quasi-commercial leasing models, scaling rental subsidy investment beyond €15 million by 2028 and unlocking vacant housing stock for social impact.

In a context of land scarcity such as Malta, the future of housing cannot depend solely on building more but must depend on using better. This is where our model offers global relevance. By shifting the focus from expansion to optimization, we are demonstrating how existing housing ecosystems can be mobilized to deliver faster, more sustainable outcomes. It is a pragmatic yet forward-looking approach, aligned with the evolving direction of European and international housing policy.

However, transformation is not only about supply, but relevance. As Housing Authority, we are rethinking not just how much we build, but what we build and for whom. Changing family structures, increasing single-person households and shifting demographic patterns require a new generation of housing solutions. Designing for yesterday’s households will not solve tomorrow’s challenges. We are therefore actively exploring diversified tenure models and more adaptive housing designs whilst ensuring that what we provide genuinely supports stability, wellbeing and social mobility. At the same time, labor market evolution is reshaping housing demand. Today, nearly a third of our workforce is foreign, with a marked shift from predominantly European inflows a decade ago to a more diverse composition of third-country nationals. This transformation brings new expectations, new pressures and new opportunities, yet housing supply has remained largely unchanged.

Our responsibility and our opportunity, is to bridge this gap. By expanding the range of housing options and aligning supply with a more diverse and fluid demand, we are not only responding to today’s realities but preparing for tomorrow’s. This is not simply a housing strategy. It is a systemic shift towards a more responsive, inclusive and resilient housing model. One that places people at its core while delivering solutions that can scale, adapt and inspire beyond our shores.

What initiatives has the Malta Housing Authority implemented to make housing more affordable, given rising material costs, energy prices and inflation in Europe?

Our approach is anchored in a clear principle: housing policy must be designed around people, not systems. Every decision begins with an understanding of how individuals and families live, evolve and experience housing in real terms. This philosophy underpins the four priority groups requiring distinct and forward-looking responses: young families with children, young adults, migrants and the elderly. These groups reflect not only local realities, but the broader demographic and social shifts shaping housing demand across Europe. Through both national experience and engagement at European level, including within the European Commission’s Affordable Housing Board, it has become evident that the housing challenge today extends well beyond affordability. It is increasingly defined by accessibility, adaptability and demographic alignment.

Malta mirrors these wider European dynamics. We are facing a rapidly ageing population alongside persistently low fertility rates. While many older individuals are homeowners and relatively insulated from affordability pressures, they are often constrained by homes that are no longer suited to their physical needs. At the same time, younger adults encounter growing barriers to access, primarily driven by affordability. Too often, these realities place different generations in competition within the same housing system.

Our response is to move beyond this tension. Rather than relying solely on expanding institutional care, we are prioritizing adaptable and accessible housing solutions that enable older persons to remain active within their communities. This not only enhances independence and wellbeing, but also supports a more efficient use of housing stock, freeing up larger homes for younger families and contributing to broader demographic sustainability.

Through Vision 2050, we are integrating short, medium and long-term objectives into a single, coherent strategy. Our goal is not simply to respond to change, but to build a housing system that anticipates and adapts to it. Within this framework, migrants are an essential component of the housing landscape. As a key part of Malta’s labor force, their housing needs are predominantly met through the private rental sector. While Malta maintains one of the highest homeownership rates in Europe, we recognize that a resilient and well-regulated rental market is equally critical. This recognition led to a structural shift in 2018, when we introduced the first comprehensive regulatory framework for the private rented sector. The role of the state evolved from primarily a direct provider of housing to a strategic enabler of a stable, transparent and balanced market. We have continued to refine this framework in response to changing realities. The introduction of a national rental register in 2020, alongside minimum lease durations and efficient dispute-resolution mechanisms, has strengthened both governance and trust within the sector. Today, with approximately 70,000 registered contracts, we operate a robust data foundation which is enabling more precise, evidence-based policymaking, allowing us to design targeted subsidy schemes that reflect actual market conditions and respond effectively to emerging needs.

The Housing Authority therefore operates across two critical dimensions: as the regulator of a stable private rental market and as the country’s largest social housing provider. In doing so, we combine policy, data and targeted support to deliver a housing system that is more inclusive, adaptive and resilient to the challenges of the future.

How do you balance efficiency for the Housing Authority with investments in public housing and managing subsidies?

Our approach is grounded in data-driven, intelligence-led policymaking to ensure that housing interventions are not only responsive, but anticipatory of society’s evolving needs. At the same time, we are committed to modernizing the housing stock already within our portfolio, recognizing that transformation is as much about upgrading what exists as it is about creating new supply.

We have invested over €75 million in the regeneration of public housing, with a strong focus on accessibility and dignity. This includes the installation of lifts which are currently at a pace of one every fortnight, enabling older residents to remain within their communities. Beyond this, we are upgrading façades, roofs and shared spaces, while extending accessibility support beyond public housing into the private sector. Through targeted grants, we are facilitating interventions such as stairlifts, adapted bathrooms and mobility enhancements to ensure that individuals with disabilities or reduced mobility can continue to live independently and safely. In parallel, we have strengthened our institutional architecture by establishing dedicated policy and compliance functions, enhancing both strategic capacity and operational accountability.

At its core, our philosophy is clear: social justice is not only about access, but about timing. Support must be delivered when it is needed because delayed intervention often diminishes impact. This requires a model that goes beyond uniformity, embracing flexibility, empathy and responsiveness to different life circumstances. Within this framework, our compliance unit plays a pivotal role, not as an instrument of enforcement alone, but as a bridge between policy and people. By engaging directly with tenants, clarifying responsibilities and reinforcing trust within communities, we have seen a tangible shift towards higher compliance and a reduction in reported issues over time.

We have also taken decisive steps to safeguard the long-term sustainability of social housing. Since 2022, social housing units can no longer be sold, ensuring that this critical stock remains available for future generations. At the same time, we are actively supporting pathways to homeownership. Through our equity-sharing model, the Housing Authority co-invests in property purchases, acquiring up to 50% of the value, while allowing beneficiaries to progressively reclaim full ownership over time. Complementing this, we provide interest-free deposit assistance schemes to help individuals overcome initial financial barriers to accessing mortgages. These measures reflect a balanced approach: protecting social housing for those most in need, while empowering others to transition towards ownership.

Our responsiveness was particularly evident during the COVID-19 crisis, when we implemented a one-year moratorium on loan interest and repayments, providing immediate relief to households facing uncertainty. We continue to work closely with Malta’s banking sector, including Bank of Valletta and APS, fostering coordinated, solution-oriented support for clients.

One of our most innovative interventions is the New Hope scheme, designed to address a structural gap in access to homeownership. In Malta, mortgage approval is contingent on life insurance coverage, yet certain individuals, such as cancer survivors in remission, are unable to secure such policies despite being financially stable. Under this scheme, the Housing Authority steps in to guarantee the mortgage, effectively bridging the gap where traditional insurance mechanisms fall short. This is emblematic of our broader approach: we begin with the realities faced by specific cohorts and we adapt our tools swiftly and pragmatically to ensure that housing solutions remain relevant, inclusive and future-ready.

Collaboration is increasingly important in addressing complex housing challenges. How does the Housing Authority work with organizations such as Housing Europe and local stakeholders and how do these partnerships contribute to policy innovation and the adoption of best practices?

Collaboration across Europe is not optional but essential. While the pressures shaping housing markets are increasingly shared, the pathways to solutions remain deeply contextual. This is precisely where Malta offers unique value.

Our scale allows us to operate as a real-time policy laboratory. With granular data on property transactions and rental markets, we are able not only to design targeted interventions, but to test, refine and scale them with speed. In doing so, we generate insights that are increasingly relevant beyond our borders. The structural trends we are navigating today, from declining fertility, a workforce where one in three is foreign, sustained tourism pressures and rapid population ageing, are the very dynamics that many European countries are now beginning to confront.

Malta’s geography further amplifies this dynamic. As a highly dense, city-scale nation with the smallest land footprint in the European Union, we operate within one of the most constrained housing environments in Europe. Yet constraint, in our case, has become a catalyst for innovation. Our governance model enables national-level implementation without fragmentation, allowing us to respond with agility that larger, regionalised systems often struggle to achieve. We are actively working to reduce administrative friction and accelerate delivery. For instance, while permitting processes in some jurisdictions extend over several years, our ambition, which is driven in collaboration with the Planning Authority, is to bring this timeline down to 100 days. This ability to act quickly, adjust policies in real time and intervene with precision is one of Malta’s key strengths. It has contributed to maintaining high levels of homeownership, relative market stability and strong security of tenure. But stability alone is not the end goal.

Our approach is rooted in continuous recalibration, identifying emerging gaps, adapting instruments and ensuring that housing opportunities remain aligned with evolving societal needs. Government, in this context, is not a passive regulator but an active enabler: capable of immediate, targeted and data-driven intervention. This philosophy is fully aligned with the direction of the European Affordable Housing Plan, which calls for a balanced focus on affordability, sustainability, quality and wellbeing. Ultimately, the challenge for Europe is not simply to build more housing, but to build differently.

The future of housing will be defined by systems that are adaptive, innovative and resilient. It will require investment not only in supply, but in smarter models that respond to demographic shifts, economic realities and environmental constraints. Malta’s experience demonstrates that even within the most constrained environments, it is possible to lead this transformation: by designing solutions not just for today’s pressures, but for tomorrow’s realities.

What is your final message for our readers of FOREIGN POLICY?

Europe is confronting a housing challenge that remains unresolved across all member states. While some countries have made meaningful progress, there is no single blueprint,  but only lessons that can be adapted, scaled and refined within different contexts.

Malta’s contribution to this collective effort lies in demonstrating that constraint can be a powerful driver of innovation. Our scale enables agility, but more importantly, it enables alignment. By bringing together government, civil society, the private sector, architects and researchers as true partners and not stakeholders at the margins, we are shaping a housing ecosystem that is integrated, responsive and forward-looking. This collaborative model allows us to move beyond fragmented interventions towards systemic solutions where policy, design, finance and community are interconnected.

Vision 2050 reflects this ambition. It is not simply about increasing housing supply, but about redefining the role of housing within society. It is about ensuring that access to a safe, stable home is not treated as an advantage, but as a foundation for dignity, opportunity and wellbeing. Malta’s experience shows that even within the most constrained environments, it is possible to reimagine housing systems with clarity, purpose and impact. In doing so, contribute meaningfully to Europe’s broader housing transformation.