Economy: Out of the living room

The housing shortage is according to the economies also in the demographic development, so nothing would improve.
 The German Council of Economic Experts proposes that the Federal Government increase housing subsidies more quickly and make the surrounding areas of major cities more attractive.
 From the rental price brake and the building children money keep the economics nothing.



    When it comes to housing, Germans are becoming increasingly demanding. This is also what the economists have pointed out. In 2005, a single living single claimed an average of 41.2 square meters of living space, in 2017 it was already 46.5 square meters. There was also a significant increase in one-person households: 17 percent more since reunification. Since many people moved from the east of Germany to the west and into the big cities at the same time, the Council of Economic Experts sees one reason for the housing shortage: "The demographic development provides an important explanation not only for rising prices and rents, but also for the growing problems in finding a home, "states its new annual report. Confidence that this could improve, however, do not spread the economies.


    The demographic trends are "for the foreseeable future, nothing fundamental change," write the government consultants. They see the danger "of social segregation within cities." Burdened by the increased rents are mainly socially weaker households. But there are no quick solutions in housing policy. But the economics for the grand coalition have some suggestions for improvement.

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Add to the housing allowance


    At the end of 2017, nearly 600,000 households received housing allowance. In the seven cities, however, only about one percent of households benefited from it. And the housing allowance will not be raised again until 2023, except in the series a surcharge is planned for 2020 – too little, say the economics. They demand that the housing allowance be adjusted annually, just like the state basic insurance Hartz IV. The federal government should also provide regular income support with regard to income limits so that needy households with rising incomes are still entitled to receive support. By contrast, the economists do nothing about the rental price brake. The help only those who manage to get an apartment ("Insider"). On the other hand, the situation of "outsiders" is likely to worsen the brake, "as the supply of regular apartments is reduced due to conversions into furnished apartments and the sale to owner-occupiers".


    Build socially


    More and more publicly funded apartments fall from the Mietbindung. The number of social housing has therefore been shrinking in Germany for years, now there are just over a million. The federal government now wants to make five billion euros for social housing loose. The economies in principle have nothing against it, but see two dangers: blocks of flats, which develop into social hot spots and the misappropriation, ie tenants, who should not live in social housing due to their income. The experts therefore recommend that the income in the subsidized new building should be reviewed every three years and that the highest income level for support should be set relatively high. This would ensure a "social mix".


    Realign funding


    From the Baukindergeld the economies do not hold much. The sellers would only "move the promotion to their selling prices". Instead, they propose to reduce the additional costs associated with the purchase of real estate – for example, through a new tax exemption for land transfer tax. The economic methods are well served by an idea from Switzerland, where the purchase of self-owned property is promoted through company pension schemes.


    Make the surrounding area more attractive


    Building land in the cities is rare. For this reason, economists want to promote "the periphery of cities and metropolitan areas" more, for example by better public transport, the establishment of public facilities or faster Internet.

So the government wants to tighten the rental price brake
                        So far, it does not work as desired. Now the federal government wants to improve. For tenants there are some improvements.
                    By Robert Rossmann