District heating with such (relatively) low temperatures is no problem, the energy to pump is much less than the energy to heat. My house is heated from nuclear waste heat pumped more around 10 kilometers.
My apartment and office (like much of Copenhagen) are heated through incinerated waste.
From what I hear, it’s usually pretty expensive compared to ground/air-to-water heat pumps (1 SEK vs 0.4 SEK per kWh of heat)
And what if the housing gets too hot? Does industry stop because of overheating during hot months?
> it’s usually pretty expensive
So why do people heat that way? Is it legislated into existence? Why? To reduce global warming?
You keep working and dump the excess heat to the air.
I'm not sure of the historical costs, but benefits are reducing dependencies on particular energy sources, reducing global warming, and heat pumps not being invented yet (long ago).
There is legislation along the lines of houses built here must be connected, just like they must also be connected to the sewage system.
(Disclaimer: I work for a company involved in this)