Leading a Life in the City: Tips for Surviving and Thriving in Urban Environments - Left-leaning party urges establishment of public housing corporation.
As rental prices continue to climb, the Left party in Saxony-Anhalt is calling for the establishment of a state-owned housing construction company. The government is being pressured to aid housing co-ops and enterprises in their modernization efforts, as mentioned by Eva von Angern (chairwoman of the Left faction in the state parliament) on Monday.
While a significant portion of the housing is already publicly owned, like in other former East German states, more assistance is still required, particularly for the renovation of accessible, age-friendly, and family-oriented housing. Lower Saxony opted for a similar state-backed housing company near the end of 2020, and similar conversations are taking place in Thuringia currently.
Both the elderly and those who earn low wages, along with single parents and apprentices, are struggling to find affordable housing, highlighted by Monika Hohmann (social policy spokeswoman for the faction). Regional variances in rental prices exist, with Saxony-Anhalt spending 24.4% of their net income on rent, which is less than the national average of 27.8%.
However, Jens Peinelt (vice-chairman of the German Tenants' Association Saxony-Anhalt) indicated that since October last year, there has been a spike in expenses associated with ancillary costs like electricity and gas. These expenses aren't captured in the statistics related to rental rates. In certain scenarios, heating costs can exceed the rental price. Both the Tenants' Association and the Left referred to an increasing backlog in renovations.
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The Left party in Saxony-Anhalt is advocating for the creation of a public housing corporation to address rising rental costs, aligning with the initiatives of other regions like Lower Saxony. The municipalities in Saxony-Anhalt need to focus on updating their housing policy, especially in regards to providing affordable housing options for vulnerable groups like the elderly, low-wage earners, single parents, and apprentices, who are currently facing housing challenges.