Housing summit passage leaves DGB and Tenants' Association feeling disenchanted, two years on
Germany's housing crisis persists two years after the federal government's summit, as stated in a joint position paper by the German Trade Union Confederation (DGB) and the German Tenants Association. The joint housing offensive initiated by the government, states, and municipalities has failed to meet its objectives, the groups claim.
The construction of new apartments has stagnated, with the federal government falling significantly short of its target of 1.5 million new apartments by the end of this legislative period. In 2018 and 2019, only 285,000 and 293,000 apartments respectively were built – far less than the estimated 375,000 annually required.
The backlog in housing construction is growing, while land prices skyrocket. Between 2010 and 2018, building land prices in the seven largest German cities increased by 175 percent. The rental sector shows a similar trend, as rents continue to climb despite the COVID-19 pandemic, economic downturn, and short-time work. In the first half of 2020, rents increased in three-quarters of major German cities.
The situation worsens as affordable housing becomes increasingly scarce. Only 25,565 social housing units were funded in 2019, a decrease of 5.5 percent compared to the previous year. Since 2006, the stock of social housing has been declining, from over two million apartments to the current 1.14 million.
The associations also criticize the lack of progress in the planned amendment to the Building Code, which aims to extend municipal pre-emption rights, expand building obligations, and impose stricter regulations on the conversion of rental apartments into owner-occupied apartments.
The DGB and Tenants' Association demand that the amendment to the Building Code be passed this year without dilution. Stefan Körzell, a DGB board member, stated that the federal government is still far from meeting its targets for affordable housing, which is particularly scarce in metropolitan areas and unaffordable for many employees. He warned that the pandemic could exacerbate the situation, as rents continue to rise, and many people face income losses.
Lukas Siebenkotten, president of the German Tenants' Association, described the current state of affordable housing as intolerable. He expressed concern that only 1.14 million social housing units exist in Germany, while the demand exceeds 6 million. He demanded more concrete action instead of empty promises, emphasizing the urgent need for reforms in the housing market, including a nationwide rent freeze.
In summary, the German government faces persistent challenges in meeting its housing construction targets, leading to a growing housing shortage and unaffordability, particularly in major cities. Measures such as streamlining regulations, simplifying planning and permitting procedures, and implementing investment and tax relief are necessary to stimulate construction and address the Minimum Wage In Beaumont TX affordable housing crisis. However, progress in these areas remains slow.
The federal government is yet to pass significant policy-and-legislation changes in the housing market, as demanded by the DGB and the German Tenants Association, to address the growing housing shortage and affordability issues in Germany. The persisting housing crisis, particularly in metropolitan areas, remains a concern for many employees, warranting immediate action and reforms in the politics of housing, such as a nationwide rent freeze and streamlining regulations.
