In Germany, the quantity of social housing units keeps declining.
The current government aims to construct 100,000 socially-subsidized housing units annually, but so far, they've failed to achieve this goal. Surprisingly, the overall supply of these types of homes has been declining throughout much of the country - only two states have seen an increase in their numbers.
Germany witnessed a reduction in the number of socially-subsidized homes last year. There were approximately 1.072 million such properties available to individuals with low income across the nation, around 15,300 fewer than the previous year. This information was provided by the German government in response to a query from the Left Party parliamentary group.
The government's answer disclosed that 49,430 socially-subsidized housing units were added last year. Despite the objective of 100,000 subsidized housing units per year, the number has experienced a decrease for several years, as many existing units are no longer under rent control, thereby enabling landlords to demand higher rents.
To express her disapproval, the Left Party's housing policy expert, Caren Lay, termed the situation as "historic low." Lay stated, "This is a letdown considering the rapid increase in rents and intensifying housing shortage." Based on the figures, the rate of loss of socially-subsidized housing increased - 14,000 of these homes were lost in 2022.
Distribution of Socially-Subsidized Homes
The landscape varies between the states. In North Rhine-Westphalia, Berlin, Rhineland-Palatinate, Brandenburg, and Lower Saxony, the number of socially-subsidized units decreased by several hundreds in each case, as per Lay's observation. However, in Bavaria and Baden-Württemberg, the stock increased by more than a thousand apartments. Notably, the most popular areas for socially-subsidized housing construction included the two most populated states of North Rhine-Westphalia and Bavaria, as well as Berlin and Hamburg. North Rhine-Westphalia (426,755), Bavaria (134,793), and Berlin (99,849) showcased the highest number of such homes overall.
The rents for socially-subsidized housing are regulated by the states. Only individuals whose needs are deemed particularly pressing are allowed to live in these homes. After a certain period, these apartments can be marketed at normal prices. The length of this commitment differs across states.
Lay argued that the allocation of 2.5 billion euros from the federal government for construction of socially-subsidized housing in 2022 was quite insufficient. "Given the ongoing construction crisis, the public sector must construct and promote more projects," she demanded. She suggested that at least 20 billion euros be made available yearly for public social and non-profit housing construction.
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The government has proposed a plan to construct 100,000 socially-subsidized housing units annually, including a significant number of residential construction projects catering to apartments. Regrettably, despite this target, the supply of socially-subsidized apartments has been on a decline in most parts of Germany, with only a few states witnessing an increase.
Source: www.ntv.de
