Building society boss expects "social explosives"
The dream of having a home of one's own becomes increasingly unattainable for many people. The CEO of Bausparkasse Schwaebisch Hall holds politics responsible for this. He demands that "proactive measures" be taken - and quickly.
Rising real estate prices, according to the CEO of Bausparkasse Schwaebisch Hall, have the potential "for a massive social explosive situation." "80 percent of people want to live in their own four walls. This also applies to the younger generation of 20- to 30-year-olds," said the Chairman of the Board Mike Kammann to the "Suedwest Presse." "A dream is shattered. This disillusionment affects people." He suspects that politics will try to treat the symptom with laws, such as a rent price cap, instead of addressing the root cause.
Approximately 700,000 housing units were completed in Germany after reunification, said Kammann. There was an oversupply, and prices fell. "Now we need to utilize all capacities. We have enough potential," he said. "However, given the current situation, we will have to live with an housing shortage plus rent price increases in the next ten years. This cannot be stopped if no proactive measures are taken now." However, he does not expect any impulses from the upcoming Bundestag election in the next twelve months.
Energy renovations are hard to calculate
In response to the question of missing investments by millions of households in energy renovation, the Bausparkassen-CEO said: "Our customers usually do not think ideologically. The point 'doing something good for the environment' has priority in politics, but for private customers it ranks third." Customers first ask themselves if the investment pays off - in two directions: "Can I save heating costs?" or "Will my house be more valuable if I ever sell it?" If the investments only pay off after ten years, owners will not be active. "Additionally, the funding conditions change regularly and are not reliable," he added.
The renovation of old buildings is a stress factor, a time factor, and sometimes even an uncalculable cost factor. "The invoice only comes due when targeted funding programs are usable, on which the buyer can rely," said Kammann. "This was rather the exception than the rule in the past, and the financing is already wobbling."
In light of the CEO's concerns, advocating for building societies to invest in the construction of more own homes could help alleviate the housing shortage and prevent excessive rent increases under rent control. However, without proactive measures, the current economic situation may force individuals to continue paying higher rents for the next decade.
To encourage energy-efficient home improvements, it would be beneficial for the government to provide clear and stable funding conditions, making investments less daunting and unpredictable for homeowners, considering the long-term financial payoff is often not immediately apparent.
