Discussion: Lucky Dwelling
- Heide Wessely
Housing costs have increased in Germany. Especially in major cities and metropolitan areas, prices for purchasing homes and renting apartments have gone through the ceiling. Exacerbating matters, in 2006 the federal government turned over the housing agenda to the states: this brought construction to a nearly complete standstill. But cities and communes also prefer to invest in infrastructure projects. And construction is more expensive than ever before. In the year 2000, the cost per m2 for an apartment in a multi-unit dwelling was € 2210. In 2014 it had risen to € 3080. So it's no wonder that a chasm has opened up between supply and demand of affordable housing. And then along came the refugee crisis. Last summer it became clear that answers must be found - and quickly! At first a concerted effort was necessary just to get roofs over the refugees' heads. But the new situation has finally forced us to focus on affordable housing - and this time we have to get past studies and discussions and act. It is rousing Germany from the stolidity associated with influence. This can be seen as a chance for Germany, for its residents, and for its building culture. Cities, universities, local and federal governments, architects' organizations, investors, etc. are developing ideas to reduce the cost of housing. We report here on a fraction of these initiatives. The first question that must be addressed is: What makes housing so expensive? The price of housing - and the percentage of income it consumes - varies from city to city. As of April 2016, for new rental contracts, Munich heads the list with € 20.48 per m2. Over the last 5 years, prices have increased markedly - but incomes are not keeping pace. So who can afford the available housing? Lawmakers' attempts to legislate affordable rents haven't yet had the desired impact. For many, the solution is to move to the periphery, with all of the associated problems: the commute, the accompanying CO2 emissions and sprawl. And there is a shift in demographics. The lack of affordable housing in attractive cities affects not only those with low incomes: it now also affects the middle class. Nonetheless, the apartment owners have no trouble finding takers. And so it comes as no surprise that the average floor area per person continues to rise. This development is only partially explained by the growing number of 1-person households and users' increased expectations. Another aspect is that the number of clients who can afford luxurious second residences in central locations has grown. Supply and demand now regulate the price, and demand is high. This is compounded by the fact that Germany's federal government has almost completely withdrawn from housing. Its decision to sell all government-owned apartments (a total of 38,600 units) fits in this pattern. There are now just 1.5 million social housing units in Germany. One recent study found that 54 % of these units are occupied by persons who are not entitled to them. For this reason, in recent decades, instead of providing social housing to those in need of it, the federal government has made housing allowances available. This initially seems to make sense, because households that no longer require the subsidy can remain in the same apartment. To try to convince them to leave is problematic. But by subsidising people instead of buildings, the government plays into the hand of the property owners: as long as supply is short, they determine the rent prices. Therefore, it was a major step in the right direction when in 2016 the federal housing agency's budget was doubled. But the government has continued to give subsidies to private clients who must pledge to make apartments available at € 6.50 per m2. So the second question is: Why are construction costs so high and what can be done about it? As mentioned, property costs play an important role. In just the last 5 years the cost of land zoned for construction in Berlin has increased 92 %; in Stuttgart and Munich the statistics are comparable. One countermeasure: states and communes will no longer sell property to the highest bidders.
