For rent cities will live in major German luxury. In the election campaign, affordable housing is still, so far, not a big issue. A relaxation of the situation is not yet in sight. The consequences are disturbing.
For 30 Euro you can buy in Germany is a medium sized bouquet of flowers, or food for a few days, a PC game (or several), a hardcover book (or even two). For about 30 euros you had to pay in 2016 in Munich, according to “financial test” for a square meter of a newly rented apartment in the best location and with best amenities. The magazine relies on data from the banks funded research Institute vdp Research.
Little better, it looks at the current Rent, According to the F+B-rent index index of tables all the official Rent price in Germany, compares the average rent in Munich last year 11,18 euros per square meter – and, therefore, 71% higher than the national average. Also in Hamburg, Berlin, Stuttgart, Düsseldorf, Köln or Frankfurt, the situation is tense. Nationally, the Rent in 2016 climbed to 1.8 percent – in spite of the introduced two years ago the rent brake, which should dampen the rise in Rents for new lettings.
A Million homes lack
Also in the purchase prices for condos there are whopping increases. A reason for the price spiral, there is a growing demand and the associated supply shortages, especially in the centre of attractive cities. Re-urbanization of the science. “Almost half of a year at University, and studied not in the country, but in towns and cities. It is clear, therefore, that cities attract young people to them,” says Susanne Heeg is a Professor of Geographical urban research at the Goethe University in Frankfurt am Main. Who could afford to stay after graduation in the cities.
By 2020, would have to be built, therefore, according to the Federal Institute for construction, urban and spatial research (BBSR), about 350,000 homes per year to meet nationwide demand. According to the German tenants ‘ Association (DMB), Germany is lacking a Million homes. 2016 have been built, so the DMB, only 53.000 rental housing, the year before that even less. In addition, the Institute in the past ten years, have disappeared according to the Hannover-based interdisciplinary Pestel-100,000 in so-called social housing from the market.
The high prices have an impact on individual life forms, is not, according to Susanne Heeg is always visible
“Simple Market Logic”
The latter is also connected with a revolutionary change in the housing industry, Many formerly public housing have long been in the hands of corporations. Vonovia, the largest housing company in Germany, managed more than 300,000 homes. One of its objectives is “to implement steady rent increases a yield, which is then given to the share holder. For the apartment itself, again, is not at all relevant, but only the rate of return,” says Susanne Heeg.
In addition, many newly built flats went up in the inner cities to owners. Used often as a pension. “Obviously you can earn with the construction of condos more, therefore, will be made a priority. This is simple market logic”, criticized the DMB Director Lukas Siebenkotten. “At the same time all the construction projects to be fed in real estate Fund or other Fund to be issued by insurance companies or banks,” says Heeg. Worked similar to the Vonovia: “If I have shares in an open-ended real estate Fund, I would like to also, that after a year a certain amount of income you spit out.”
Lukas Siebenkotten want that middle and lower income groups new construction make apartments can
Second, France?
Hardest hit by the shortage of housing people in the lower income third. “Only one in five low-income household currently has any Chance at all of getting a social rented apartment,” – said on the website of the Pestel Institute. The DMB warns of a “social segregation”, if poorer people are pushed out of certain parts of the city.
There is the fear that “in Germany, a similar Situation occurs as in major French cities where the poorer sections of the population in the Banlieues lives,” says Susanne Heeg. In Frankfurt alone, could afford to now, only certain groups of apartments within the inner city, others would be pushed to the edge of the city. “There is certainly already discussions, even if it sounds ridiculous, to fights, to riots, where the population is young, with the Situation in which she lives, is not satisfied, and a violent expression,” the city of a researcher.
Also, could it be that people go out due to rising Rents “less, less often in the holidays, that it is limited,” says Heeg. “But we can’t see. After all, who is immersed in the inner cities or at concerts? These are the guys that can afford it. The others stay home. This is the drama. But there is an invisible drama.”
Not everywhere affordable housing is scarce. Who lives in the country, it may be easier
Not a hot topic in the election campaign
But the middle of the society has reached the housing shortage for a long time. “Almost every tenant who comes to us for advice and any legal Problem with us to discuss, complains of this problem,” says Lukas Siebenkotten. This seems to also have the policy recognized. Federal tree inisterin Barbara Hendricks (SPD) said on Monday, with the founding of the “Alliance for affordable Housing and construction” in the year 2014 and one of the government-sponsored housing offensive was “one of the most important issues of our country back on the Federal political Agenda”. Thus, the Federal have triple about the funding for social housing by € 1.5 billion.
A lot of attention the topic gets in the election campaign so far, anyway. Although the CDU and the SPD want to promote the construction of housing, and also in the opposition parties, one finds many proposals to improve the situation, but in the choice of programs they are hidden. Siebenkotten don’t understand.”This is contrary to the mood of the population speaks.”
Barbara Hendricks calls for a continuation of the Alliance for affordable Housing, and Build after the election
“At some point there needs to be a reversal of this trend”
In order for the Situation to improve, calls for the DMB, among other things, the construction of at least 200,000 new housing units in the year, up to 80,000 of them social housing. Investors need to be lured allowances with tax relief, or investment, the rental rates are at the same time capped but.
As the situation calms down by itself, is unlikely. A relaxation step at the highest price areas gradually explains Siebenkotten. “That doesn’t help but the great mass. In a normal market, I shall be able to detect no sign. I think it is more likely that such forecasts are to be used with extreme caution.” Similar to Susanne Heeg sees it: “sooner or later the prices will have to fall, because there is, given the current income limits. At some point it must come to a trend reversal, but I don’t know when.” Until then, remain long queues in the case of apartment visits is probably a familiar sight.