BERLIN (dpa-AFX) – From the point of view of the Haus & Grund owners’ association, the rental situation has eased for many people in recent years. Because gross incomes in most cities and regions have risen much faster than rents, housing has become more affordable, the association announced on Tuesday in Berlin. According to this, wages and salaries between 2015 and 2020 nationwide increased by an average of 11.3 percent to 3435 euros gross per month. In the same period, the existing cold rents only increased by an average of 6 percent to 7.23 euros per square meter.
According to Haus & Grund, the increase in new contract rents was slightly higher at 6.6 percent. According to this information, the square meter costs 7.94 euros cold. The association relies on regional data from the Federal Employment Agency for gross income. When it comes to average rents, Haus & Grund relies on the rent index of the consulting firm F+B. The rental prices of the index are based on calculations based on asking rents.
According to Haus & Grund, the trend can also be observed in the big cities. “Living in major German cities became more affordable for everyone with an income between 2015 and 2020,” said Association President Kai Warnecke on Tuesday. “The affordability champion in Germany is Berlin.” There, new contract rents in particular developed the weakest during the period. “Wage development, on the other hand, was the best, so affordability has increased the most there.”
But it is precisely this assessment that is being contradicted. When it comes to the average rent and income development in the seven largest German cities, the association’s assessment is correct, said housing market expert Konstantin Kholodilin, from the German Institute for Economic Research (DIW), on request. “However, in some cities they are not correct. For example, in Berlin and Stuttgart, existing rents rose faster than wages between 2015 and 2020.”
The DIW traces the difference back to a different database. According to Kholodilin, it relies on rental data from the German Real Estate Association (IVD). “Generally, it seems that in the largest cities, rents and wages are increasing at fairly similar rates,” he said.
The German Tenants’ Association was also critical of the statements made by the owners’ association. “Unfortunately, the average wage development in Germany in recent years says nothing about how much the majority of tenants are currently suffering from excessive rents,” said President Lukas Siebenkotten on request. “People with less bulging wallets don’t benefit if high earners earn more.” The rents are no longer affordable for many people, “because they have been rising for years, both in existing buildings and in new buildings”.
Haus & Grund also emphasizes that despite the developments identified by the association, demand on the housing market continues to exceed supply. “And of course there are also people who, despite this development in income, were not able to take part,” said Warnecke. These included in particular single households and single parents. The political focus must therefore change. These groups of people would need more support./maa/DP/nas