ᐅ Is the real estate market increasingly forcing families to build their own homes?
Created on: 6 Apr 2019 11:35
T
Thierse
Actually, we would prefer to avoid building. Unfortunately, existing properties within a 20 km (12 miles) radius have become quite expensive, and affordable rental houses with small gardens are simply scarce.
Until now, we have been living in an old rental apartment without a garden. We would like to change that, but there is a lack of options. The listings on various platforms are overcrowded with families looking for affordable housing.
Who is familiar with this situation, and how do you deal with it?
Until now, we have been living in an old rental apartment without a garden. We would like to change that, but there is a lack of options. The listings on various platforms are overcrowded with families looking for affordable housing.
Who is familiar with this situation, and how do you deal with it?
I also share the view that not everyone can expect to find an affordable apartment or even a house in every major German city. However, when it reaches a point where, for example, even police officers responsible for the safety of the city can no longer afford to live there, urgent action is necessary. Nurses and other healthcare workers face the same problem. In the case of hairdressers, I would see it differently: either wealthy residents in the city centers have to accept that there are no hair salons nearby, or they need to pay prices for haircuts that allow the hairdresser to afford living close to their workplace. Unfortunately, the current system of self-regulating markets and similar mechanisms simply does not work at all right now.
H
hampshire7 Apr 2019 09:38kaho674 schrieb:
So we thought that with increasing demand, the city might offer some incentives to make it worthwhile. Nothing at all! It’s all nonsense. No one gets a single bit of support. Funding through loans and grants primarily supports the market but does not solve the problem. The more subsidies there are, the higher the prices rise.
kaho674 schrieb:
when it comes to the question of whether the government is responsible for ensuring that everyone has affordable housing in the big city... This question is not constructive because it is framed in material rather than social terms.
Affordable housing must be available everywhere to maintain a peaceful society in the long term. Should nurses, waiters, kindergarten teachers, administrative clerks, bakery sales staff, and others commute 50 meters (about 165 feet) to keep the financial elite’s comfort in the city?
The government needs to intervene on several levels. Social housing is one component (but please not isolated in “silos”), influence on wage development is another, tax policy a third, and access to education a fourth...
H
hampshire7 Apr 2019 09:50Yosan schrieb:
Unfortunately, all this with a self-regulating market, etc., just doesn’t work at all right now... In principle, it doesn’t work as a self-regulating system. You can also read here in the forum about the tricks people use to save money and how they confront or avoid each other.
Theoretically, everything is taken into account if everyone only thinks of themselves. Practically...
chand1986 schrieb:
Of course, the government has to intervene when people can no longer live where the work is (from which taxes are generated). However, space is limited in the city. Even if we build higher and wider, demand does not decrease because more and more people move there. That’s how these mega-cities develop – a questionable ideal, in my opinion.
hampshire schrieb:
Should care workers, waiters, kindergarten teachers, administrative staff, bakery assistants… all commute 50km (30 miles) just so the financial elite in the city can keep their comfort? That is exactly what happens – at least where I live. We live about 25 minutes from Leipzig. Just yesterday, I read in the official bulletin that expanding commuter train services will be a top priority in the coming years.
hampshire schrieb:
Social housing is one part of the solution (but please not isolated ‘silos’), What do you suggest? The way it is handled at the moment is nonsense. Anyone who tries to sugarcoat this should really be invited to see the situation on site.
hampshire schrieb:
Wage development is another factor, tax policy a third, educational access a fourth… Well, maybe I’m too pessimistic. What influence has the government had on wages over the past—let’s say—20 years? Do you really think the minimum wage is supposed to make housing affordable?
We have plenty of education here in the eastern regions too – unfortunately, everyone with a degree moves back to Munich...
I maintain that not everyone can live in the city. Rural areas need to become more attractive in terms of jobs, infrastructure, and social life. The rest will have to commute.
C
chand19867 Apr 2019 10:18kaho674 schrieb:
What influence has the government had on wages over the last—let’s say—20 years? Excuse me?
Gerhard Schröder, as Chancellor, had a major impact on wages with his Agenda 2010—downward! The Alliance for Jobs aimed to slow wage growth. Top-up benefits were introduced to create a low-wage sector. Both goals were achieved and together significantly contributed to the euro crisis.
Furthermore, pensions have been continuously undermined—which are also a form of income. Then there’s the false claim that this is necessary due to demographics, and almost everyone believes it.
This policy has been and continues to be pursued by the current government, combined with the so-called “black zero” (balanced budget) strategy. Wage negotiations also apply to millions of public sector employees.
In short: the state has a very significant influence on wages, exercised in the interest of employers. Especially over the last 20 years.
As a result, Europe is facing a crisis, the central bank had to cut interest rates to zero, and housing has become expensive as a consequence. So, we’re back on topic.
Several factors come together here:
1) Lack of space. Take Hamburg as an example. Housing shortage. The city government has therefore decided to dedicate the remaining available land exclusively to multi-family residential buildings, giving the land to cooperatives or municipal housing companies. Those wanting single-family homes basically find nothing in Hamburg. One or the other is possible, but not both.
2) The police, etc. It used to be common for federal, state, hospitals, and others to have company or employee housing. All sold off, privatized—how foolish was that!
Conclusion: If Bavaria wants police officers in Munich, the Free State will probably have to build police housing again. Nothing else helps.
3) Self-reflection. The demands also drive up the price. The wife wants a walk-in closet, everyone who thinks they are important believes they need a home office—even if it is only for gaming or ironing. Guest rooms, though guests never come, a 160sqm (1722 sq ft) townhouse for four people, a tiny 9sqm (97 sq ft) room should be reported to child services... and then everything is so expensive.
4) These demands also prevent industrialization in construction, which would reduce costs and increase efficiency. If a developer offered just four house types—of which you choose one, and the only choice you have is the curtain color—then much different prices would be possible. But for most here, that is a horror.
Karsten
1) Lack of space. Take Hamburg as an example. Housing shortage. The city government has therefore decided to dedicate the remaining available land exclusively to multi-family residential buildings, giving the land to cooperatives or municipal housing companies. Those wanting single-family homes basically find nothing in Hamburg. One or the other is possible, but not both.
2) The police, etc. It used to be common for federal, state, hospitals, and others to have company or employee housing. All sold off, privatized—how foolish was that!
Conclusion: If Bavaria wants police officers in Munich, the Free State will probably have to build police housing again. Nothing else helps.
3) Self-reflection. The demands also drive up the price. The wife wants a walk-in closet, everyone who thinks they are important believes they need a home office—even if it is only for gaming or ironing. Guest rooms, though guests never come, a 160sqm (1722 sq ft) townhouse for four people, a tiny 9sqm (97 sq ft) room should be reported to child services... and then everything is so expensive.
4) These demands also prevent industrialization in construction, which would reduce costs and increase efficiency. If a developer offered just four house types—of which you choose one, and the only choice you have is the curtain color—then much different prices would be possible. But for most here, that is a horror.
Karsten
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