As of: March 27, 2024, 6:05 a.m
By: Max Schäfer
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Press
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In Germany, relatively few people own the apartment or house in which they live.
Experts name the causes.
Munich – Finding a suitable apartment is difficult, especially in big cities – especially if it has to be affordable.
Nevertheless, Germany is a nation full of tenants.
In no other EU member state do so many people live in rented accommodation.
Conversely, in no other country is the home ownership rate so low.
The exception is Switzerland, a non-EU member.
According to the European statistics agency Eurostat, 46.5 percent of Germans own their own home.
More than half rent.
For comparison: the European average is around 70 percent.
The proportion of home ownership is particularly low in large metropolitan areas.
In Berlin it is less than 14 percent.
It is similar in Hamburg, Frankfurt, Munich and Cologne.
In rural areas, however, more people own the properties in which they live.
Many regulations drive up the costs of building houses and apartments
According to Felix von Saucken, Head of Residential at real estate service provider Colliers, the high construction and purchase costs are the reasons for the low ownership rate.
These are high compared to other European countries.
The funding for property is also lower.
“There are partially subsidized loans or lower interest rates for buying your first house,” von Saucken told
Wirtschaftswoche
.
Building is cheaper everywhere than in Germany.
The solid construction and numerous building regulations ensure that the pure construction costs for real estate are very high, explained real estate professor Günter Vornholz to
Tagesschau.de
.
There are a number of building regulations that differ in all 16 federal states.
The problem is known.
Barbara Hendricks (SPD), then Federal Construction Minister, advocated standardization of the rules.
However, countries must make the adjustment.
In addition, municipalities can regulate the construction of a house.
Real estate transfer tax as a reason for the low home ownership rate in Germany
When buying a house or condominium, the real estate transfer tax is another cost driver.
The federal states determine these.
There are differences though.
In North Rhine-Westphalia this is 6.5 percent.
For an apartment for 300,000 euros, buyers have to pay 19,500 euros in tax, reports
Wirtschaftswoche
.
“Your single-family home could also be here”: An expert calls for federal funding programs so that the dream of owning your own residential property becomes a reality for more people.
(Symbolic photo) © Jan Woitas/dpa
You must have “saved around ten to twelve percent of the purchase price” just for the additional purchase costs, said Michael Voigtländer from the German Economic Institute (IW) to
Tagesschau.de
.
These are a “very big obstacle”.
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Good market and traditional support for rental apartments in Germany
According to experts, the market for rental apartments in Germany is better than in other European countries.
Even in expensive large cities, rental prices are still relatively cheap compared to other metropolises abroad.
The experts also point to good tenant protection.
According to economist Michael Voigtländer, there is also something special about the housing market.
This is relatively diverse.
“The fact that I can actually rent a single-family home or a high-quality apartment of various sizes does not exist in other countries.”
However, the reasons for the low housing ownership rate are not just the high costs and subsidies.
As early as the industrialization in the 19th century, large complexes of rental apartments were built in cities.
In the destroyed cities after the Second World War, many apartments also had to be built quickly.
“In the 50s and 60s, rental apartments were built quickly,” explained Günter Vornholz
to Tagesschau.de.
Expert names methods to enable more people to own houses or apartments
According to Felix von Saucken, in order to enable more people to own their own condominiums or houses, a reform of building regulations and an adjustment to taxes are necessary.
“The requirements need to be relaxed and the property transfer tax needs to be reduced,” said the industry insider to
Wirtschaftswoche
.
Finance Minister Christian Lindner suggested the tax be canceled, but nothing happened.
The property transfer tax is a state matter.
In addition, subsidies for loans or the use of state equity are an option to enable young people to buy real estate.
An expert gives tips on how to save when buying real estate.
(ms)