The real estate industry analysis company bulwiengesa has conducted an analysis on behalf of the Wertgrund service and investment group on developments in the area of social housing in 26 German cities. Overall, the developments in the area of subsidized rental housing are sobering: Between 2011 and 2019, the proportion of social housing on the real estate market fell by an average of 21 percent.
There are major differences in the social housing stock between the cities surveyed. While Bielefeld has the highest share of subsidized housing in the residential real estate sector at 16 percent, less than 0.2 percent of the rental housing stock in Leipzig as well as in Dresden was social housing in 2019. The numbers in Dresden and Leipzig are concerning because both cities have a relatively high share of low-income households. In Dresden, 25 percent of residents are among households with a low net income, while in Leipzig the figure is 30 percent.
The national average of subsidized rental housing is 9.4 percent. The fact that this proportion is too low to meet the need for subsidized rental housing can be seen from the evaluation of income per household. According to the study results, around 21 percent of rental households in Germany have a net income of 1,600 euros or less. Of these, as many as seven percent have incomes lower than 1,000 euros a month.
Source: bulwiengesa
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