Rising Rents: How the state ensures that homes are always more expensive

In the German economy is the strongest big city, a new record in sight: The average rent for new apartments in Munich is approaching, according to data from the

Rising Rents: How the state ensures that homes are always more expensive

In the German economy is the strongest big city, a new record in sight: The average rent for new apartments in Munich is approaching, according to data from the real estate Association of the South (IVD) in the meantime, the 20 euros per square meter - prohibitive for normal wage earners. Not even the Corona-crisis is able to date the increase in Rent to stop. The Bavarian capital is the leader, but not an isolated case. For this Saturday a nationwide "action against displacement and rent madness" and called for rallies in many cities.

The main demands: capping of Rents and the nationalization of large companies: the "profit-greedy housing companies such as Vonovia, Akelius, Deutsche Wohnen and co. belong to in society," said pre-Birgit Otte, one of the initiators.

state drives rising Rents in Germany

Who is to blame for the development? There are really a priority greedy housing companies and speculators? The facts suggest a different conclusion: A significant role of the state, of Federal policy up to the municipalities. In addition, new construction projects initiated in many places with fierce resistance by the Incumbent. Also in Munich, with its many citizens ' initiatives against the new construction and infill development is a Prime example.

The development of the prices shows that the housing is in the cities, no gold mine for money, greedy companies. Example Bavaria: Within 20 years, the Bavarian average rent has increased, according to data from the IVD Süd to 80 percent of 6 to 11 Euro per square meter of the course. At the same time, land prices have more than verzweieinhalbfacht, an increase of 162 percent. The purchase prices for finished flats have more than doubled.

In Munich, is extending this development is much more dramatic: The land prices have quadrupled, while the Rent with a Plus of two-thirds have risen much more slowly.

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Whether Stuttgart or Frankfurt - "the development is similar everywhere"

And this means that For investors it will take much longer than twenty years ago, until they have brought their costs and make a profit. "The yields have declined," says Stephan Kippes, the market researchers of the IVD Süd. Whether in Stuttgart or Frankfurt - "the development is similar everywhere".

But why plots have become so expensive? All the experts agree: There is a lack of building land, local authorities have very shown long enough for new plots of land. Since the end of the nineties, the cities are growing again, the policy responded only in the middle of the last decade, with a long delay.

Vonovia-spokesperson: We are not the ones that drive Rents to new heights,"

"the land", a Vonovia spokeswoman Silke Hoock simply lack. The in Bochum-based company, with its 356 000 flats in Germany is one of the corporations, by the initiators of the action tags would like to nationalize. "We are not the ones that drive the Rents up," says Hoock to it. In the past year have increased Vonovia the Rent by an average of 0.8 percent. The rent amounts according to the company, to an average of 6.94 Euro, 14 percent lower than the German average rent.

Also neutral professionals to see scarce plots of land as a significant driver of the price development. "Scarce and hard-to-buildable land in the cities of are a bottle-neck for the expansion of new residential construction," concluded in December Markus Eltges, the head of the Federal Institute for construction, urban and spatial research (BBSR).

is to Build more and more expensive, also because of political requirements

in Addition, many municipalities like to make cash: "If municipal land for housing are present, they will be made often at the highest price bid", writes Axel Gedaschko, the President of the Association of the housing industry, GdW, in particular, cooperatives and municipal landlords have joined.

Also, the Build as such, is always costly, to a considerable extent, due to political constraints. The construction costs are increased according to the GdW in the years 2000 to 2019 to around 69 percent, which alone regulations for energy saving (EnEV) since 2002, with 17 percent contributed. "Furthermore, rising standards and standard flood drives the cost of construction," said Gedaschko to do so. Another factor: "The capacity utilisation of construction companies is at the highest level, and thus the prices."

40 years Ago there were 4 million social housing, now just under 1.2 million.

Unpleasant after-effects unfold today, yet the decisions have fallen a long time ago. In the 1980 years, the Federal government abolished the charitable status of the housing, which only worsened the framework conditions for social housing massively.

forty years Ago, there were nearly 4 million social housing units in the old Federal Republic, and the end of 2018, there were, according to Figures from the Federal Ministry of the interior, just 1.2 million. Every year, tens of thousands of affordable housing from the social bond will fall.

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Date Of Update: 19 June 2020, 09:26
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