The Land Government Ignores Housing Shortage Crisis
In North Rhine-Westphalia, the Left Party (Die Linke) has put forth plans to address the growing issue of housing affordability. The party's proposals include the establishment of a state-owned housing company, the introduction of unlimited rent control on public land, and the creation of a land fund to combat escalating land prices.
According to SPD MP Sonja Bongers, Chair of the SPD City Council Fraction and a Member of the North Rhine-Westphalia State Parliament, the housing shortage and the lack of affordable housing affects a significant portion of the population in urbanized metropolitan areas and other cities within North Rhine-Westphalia.
The housing market report of NRW.BANK from 2018 reveals that while the general price increase was only 11.5 percent in the same period, real wage development was eleven percent. This indicates a slight increase in the cost of living, particularly in the housing sector.
Re-let existing apartments have become more expensive by 23 percent since 2010, and new rents have increased by 29 percent in the same timeframe, according to the report. This has led to concerns about the increasing proportion of citizens' net income being spent on housing.
Sonja Bongers suggests that the focus of housing policy should be on rent-controlled multi-story residential construction, where the need is greatest. She also proposes the establishment of a state housing construction company and the implementation of unlimited rent control on public land or a land fund to combat land price increases.
Interestingly, studies by the universities of Frankfurt a.M. and Berlin (FU) suggest that four cities in North Rhine-Westphalia (Bonn, Neuss, Cologne, and Düsseldorf) have a housing cost quota of around 30 percent of net income. This means that theoretically, around 50 percent of the population in large cities like Cologne and Düsseldorf have a right to a rent-controlled apartment.
However, it's worth noting that no new information about the implementation of these proposals or the housing eligibility certificate was provided. Additionally, no new information about the state housing construction company or the implementation of unlimited rent control was provided.
It's also important to mention that the state government plans to reduce the funding rate for rent-controlled apartment construction from 730 million euros annually (2019) to 700 million euros annually (2020) in its housing promotion program 2017-2022. The details of this program were not discussed in the context of the proposed solutions by the Left Party.
In conclusion, the Left Party's proposals aim to address the housing affordability crisis in North Rhine-Westphalia by introducing a state-owned housing company, unlimited rent control, and a land fund. The focus of these proposals is on multi-story residential construction, where the need is greatest. The success of these proposals remains to be seen as more details about their implementation are awaited.
