Struggling Tenants Slam Inadequate Government Housing Policies
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The living situation for many renters in Germany has seen little improvement over the past two years under the ruling traffic light coalition. Rent prices remain sky-high and the shortage of affordable housing has reached staggering heights, according to a scathing assessment from the German Tenants' Association and the German Trade Union Confederation (DGB).
"An inadequate housing policy has worsened the housing crisis, leaving us with more than 700,000 apartments missing from the market," Green Party leader Ricarda Lang warned during a press conference in Berlin. The nonprofit organizations point to a whopping 4% increase in rent prices nationwide in 2022 — a worrying trend that has left millions of families strapped for cash.
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Despite setting ambitious goals to construct 400,000 new homes annually, the government has fallen significantly behind. In fact, 2022 saw a significant drop in new home construction, with only about 295,000 new homes built in comparison to 293,000 in 2021[1][2]. Several roadblocks are hindering progress, including high raw material costs, a lack of land, few government incentives, and an excess of regulations[2].
Breakdown of Current Issues
The massive price increases have placed an undue burden on thousands of families, with 3.1 million out of the country's 21 million tenant households now struggling to pay more than 40% of their total income on rent and heating costs. Worryingly, 5.5 million households are unable to heat their homes adequately, according to DGB and the tenants' association data[1][2].
Calls for Action
As a result, the German Tenants' Association is demanding significant public investment in social housing construction and energy-efficient refurbishments, along with a nationwide rent freeze. "Millions of German tenants are stretched thin by their housing costs, and rents are only going to keep rising," Lukas Siebenkotten, President of the Tenants' Association, lamented[1][2].
The DGB echoes these concerns, claiming that the German government has failed to fully acknowledge the severity of this situation. According to Stefan Körzell, a member of the DGB executive board, the government's inaction ultimately amounts to a "socio-political scandal."
Possible Solutions
German real estate experts propose several potential solutions to alleviate this housing crisis. Among these ideas are:
- Deregulation and reducing bureaucratic obstacles
- Implementing standardized building methods
- Advocating for tax incentives and funding programs
- Strengthening rent control and regulations
- Encouraging home swapping initiatives
- Increasing funding for low-income housing and social housing[1][2][5]
The SPD and Green parties have also proposed extending the "rent brake" to limit rent increases, while calling for stricter regulations on index-linked rents and limiting the maximum amount landlords can charge for renovation costs.
Further Considerations
Despite the criticism leveled against the government's housing policies, a new reform on housing benefits and the "Young Housing" support program have been recognized as positive steps to combat this issue[1][2][5].
Sources
- ntv.de,
- DGB & German Tenants' Association report,
- tauschwohnung.info,
- green-party.de,
- spd.de,
