As of: February 27, 2024, 11:02 a.m
By: Amy Walker
Comments
Press
Split
The housing crisis is getting worse and rents are rising everywhere.
An example from Munich shows how the state has to pay for the exorbitant prices.
Munich – Rents are rising everywhere in Germany, the situation is particularly dramatic in large cities.
The situation is fueled by the housing crisis: too little new housing is being built due to high construction costs and increased interest rates.
Last year only 270,000 apartments were built; the federal government is actually pursuing a goal of 400,000 per year.
So more and more people are entering the already overheated rental market - there is no supply.
The state has to pay higher rents through social benefits
According to a study, rental prices also rose significantly in the last quarter of last year.
Compared to the fourth quarter of 2022, rents rose by 5.3 percent, as the housing index from the Cologne Institute for German Economics (IW) showed at the beginning of February.
Prices rose particularly significantly in large cities.
Compared to the third quarter of 2023, prices for rental apartments and houses rose by 1.6 percent from October to December, which means an increase of 8.7 percent since the beginning of 2022, according to the IW.
Although the increases can also be observed in more rural regions, they are particularly noticeable in large cities.
Compared to the previous year, rents in Berlin were 9.2 percent more expensive in the last quarter of last year, 7.8 percent more expensive in Leipzig and 7.3 percent more expensive in Munich.
This doesn't just have consequences for private individuals.
The state also has to spend more and more money on rents in the form of social benefits.
For recipients of citizens' benefit, the costs of accommodation are covered in full; low-income earners can receive housing benefit and thus a subsidy towards the rental costs from the state.
In Munich alone, one of the most expensive cities in Germany, the state paid 23.3 million euros for rents for citizens' benefit recipients in a single month (October 2023).
The IG BAU union provides information about this in a press release and refers to statistics from the Federal Employment Agency.
Apartments for over 400 seniors: The senior residence at Westpark.
At 87 meters high, it is currently the ninth tallest building in Munich.
© IMAGO/Bernd Feil/MiS
“In addition, there is an impressive sum for housing benefit every month.
In addition to the job center payments, the state also covers the costs of accommodation for many other people who depend on it: older people with a limited pension, for example,” says IG BAU Oberbayern.
And Harald Wulf from IG BAU goes on to say, according to the statement: “To be clear: it is right and important that the state pays housing benefit and that it covers the costs of accommodation.
But social housing is even better.
They make the state independent of any rent gouging on the housing market.”
IG BAU accuses the state of “mismanagement” of the housing crisis
According to a current study by the Pestel Institute, there is currently a lack of up to 900,000 social housing units in Germany, and by 2030 it is estimated that two million social housing units will be needed to make affordable housing possible.
My news
2 hours ago
Traditional company has to close and lays off all employees
Because of pensions: economics calculates with traffic lights – read “Will lead us into the abyss”.
When it comes to work-life balance, top economist demands: “We should all learn a lesson from Generation Z”.
German family business files for bankruptcy - 150 employees affected read
Large wine manufacturer is insolvent – Lidl range is also affected
Thousands of employees can look forward to a special payment for February's payroll
“Now the state is at a dead end: it cannot offer social housing to people who urgently need housing support.
So the job centers have to accept the high rents on the open market.
And in recent years they have gone through the roof in many places,” says Harald Wulf.
The union accuses the state of “mismanagement” because it has neglected social housing for years.
IG BAU and its allies have been calling for a special fund of 50 billion euros for housing construction for a long time.
The federal government has so far clearly rejected this and is instead relying on a “construction turbo” through tax depreciation for the construction industry.
However, this project is now stuck in the Federal Council - the Union is blocking the necessary law (Growth Opportunities Act), which can only be passed with their votes.