Berlin's renters face more misery as housing crisis deepens - Politics Forum.org | PoFo

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#15295498
As the population in Germany's big cities grow from immigration coming from other parts of the world, it is leading to housing shortages, and rents are going up.
This is going to make the German people poorer, and many will not be able to live in Berlin.

Berlin's renters face more misery as housing crisis deepens

On Berlin's broad avenues, posters put up by desperate would-be tenants seeking accommodation have become a common sight. Home viewings draw long lines of hopefuls, despite rent rises that have far outstripped salaries in recent years.

The German capital, where cheap and abundant apartments were a magnet for artists and young professionals as recently as a decade ago, now has a vacancy rate of less than 1%. The cost and difficulty of renting is making it hard to attract talent and forcing some residents to leave, even though businesses are desperate for skilled labour.

Rolf Buch, chief executive of Vonovia, Europe's largest landlord, cited record-high interest rates and rent controls as factors responsible for the mismatch between housing supply and demand.

As Europe's largest economy teeters near recession, economists warn that high rents will feed inflation and reduce household consumption.

About 85% of Berliners rent their homes, far more than the 53% for Germany as a whole, and the 30% average within the European Union.

In 2004, the City of Berlin sold its indebted GSW social housing unit and more than 65,000 apartments, many vacant or needing renovation, to Goldman Sachs and private equity firm Cerberus.
The city's population started growing again in 2005, as birth rates and life expectancy rose and migration increased. Foreigners now make up 24% of residents, their numbers having almost doubled between 2011 and 2023, Berlin statistics office data shows.

A German law that limits how often a landlord can increase prices keeps rents low for long-term tenants compared with new arrivals and gives them little incentive to move.​

Berlin's renters face more misery as housing crisis deepens, Maria Martinez and Riham Alkousaa, Reuters, November 15, 2023

related threads:
Highrise housing projects in Germany going bankrupt (posted in Economics & Capitalism section)
Germany begins to struggle taking in more migrants (posted in Europe section)
#15297395
Currently 58% of germans live renting their homes.

Owning your home is only an option if you can be sure you wont suffer unemployment. Otherwise the state will take everything from you, thanks to Gerhard Schröders Hartz IV reform.

(German) source: https://www.destatis.de/DE/Themen/Gesel ... nhalt.html
#15297869
Negotiator wrote:Currently 58% of germans live renting their homes.

Owning your home is only an option if you can be sure you wont suffer unemployment. Otherwise the state will take everything from you, thanks to Gerhard Schröders Hartz IV reform.

Is it so hard to find another career earning 70% of what you were getting before?
Maybe finding a replacement job in that same career track takes a lot longer in Germany than it does in America?
Anyone who has made a purchase on a house should have some savings and be able to survive for 3 months, combined with having a low pay job.
If not, they could sell the home, hopefully pulling out most of the equity they put into it, and move into rented accommodation.

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