Construction - For affordable rents: Construction industry calls for more subsidies
In order to boost the construction of apartments with affordable rents, an association is calling for the expansion of the NRW state housing subsidy program. "Low-income households can move into relatively affordable subsidized apartments, but the middle class is confronted with sometimes very high rents when looking for housing," said Beate Wiemann, Managing Director of the NRW Construction Industry Association, to dpa in Düsseldorf.
Strict regulations, more expensive building materials and high land costs have increased construction costs. For investors, the construction of apartment buildings was therefore often only worthwhile from a net cold rent of 18 euros. A subsidy program could change this, said Wiemann.
She refers to the existing system of socially subsidized housing. Here, for example, the housing association receives subsidy money if the apartments are rented out at a reduced rate for a certain period of time - usually 20 years. Anyone who has no income or only earns up to a certain income limit is entitled to a housing entitlement certificate and can move into an apartment with a relatively low rent - if they can find one.
For single parents, the limit is 32,906 euros annual income, for a family with one child it is 49,438 euros and for families with two children it is 59,438 euros. The industry expert complains that although many families earn a little too much to qualify for a housing entitlement certificate, they are nowhere near enough to be able to pay high rents for new builds.
Wiemann believes that this system should be extended by an additional level so that people with a middle-class income also have the chance to get an affordable apartment. "This could help young families to finally be able to move out of their apartment, which has become too small, and look for something bigger." Wiemann did not want to say what the income threshold for such a voucher should be - that would have to be determined by the state government.
The financial relief should of course be less for the middle class than for poorer people, she says. "While some people only have to pay six euros per square meter, the rent for the new group could be capped at around ten euros per square meter." There is already a subsidy program to help families buy their own home. However, this does not exist for rents - the state government should change this, she says.
The industry expert emphasizes the urgency of creating more affordable housing. "Many social housing units will no longer be tied to a low rent in the coming years and will be rented out at standard market prices when they are re-let, which means they will usually be much more expensive than before." So far, far too few subsidized apartments have been built to compensate for these housing losses.
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- The NRW Construction Industry Association advocates for expanding the state's housing subsidy program to help reduce construction costs and ensure more apartments with affordable rents for the middle class, as currently, high construction costs and strict regulations make it financially unviable for investors to build apartments with low rents.
- According to Beate Wiemann, if the subsidy program is implemented, investors will find it more profitable to build apartments with affordable rents for consumers, as they would receive financial support from the government for doing so.
- In North Rhine-Westphalia, the existing socially subsidized housing system provides subsidy money to housing associations if they rent out apartments at reduced rates for a certain period of time, enabling low-income households and individuals with income limits to live in relatively affordable rented apartments.
- However, according to Wiemann, this system does not cater to families with middle-class incomes that are too high to qualify for low-rent apartments but unable to afford high rents charged by the construction industry.
- To address this issue, the NRW Construction Industry Association suggests extending the existing subsidized housing system by introducing an additional level that would provide financial assistance to middle-income families and help them secure more affordable rented apartments, thereby aiding young families in finding bigger homes.
Source: www.stern.de
