SHERIDAN, WYOMING – Dec. 9, 2024 – In a joint statement, the German Tenants' Association (Deutscher Mieterbund), the German Trade Union Confederation (DGB), and the German Association of Cities (Deutscher Städtetag) have issued an urgent plea to the German government and Bundestag (parliament) to extend the current rent control measures (Mietpreisbremse) before the end of the legislative period. Without immediate action, the rent control regulations will expire in all German states by the end of 2025, leaving millions of tenants vulnerable to drastic rent increases.
A Dramatic Housing Crisis
The organizations highlight the critical situation in the German housing market, characterized by skyrocketing rents and a severe shortage of affordable housing.
"The situation on the housing markets is dramatic," warns Lukas Siebenkotten, President of the German Tenants' Association. "Rents are exploding, and at the same time, there is a shortage of affordable housing like never before. That is why rent control is more important than ever, especially since large housing groups have already announced rent increases after the rent control expires."
Consequences of Inaction
The consequences of failing to extend rent control could be severe, impacting not only individuals and families but also the broader economy and social fabric of Germany.
- Unaffordable Housing: "If the free market alone regulates rent, the majority of tenants will no longer be able to afford reasonably priced housing," states Siebenkotten. "Rents of 17 euros per square meter and more are simply not feasible for the majority of the population."
- Financial Strain: Stefan Körzell, DGB board member, emphasizes the financial burden on workers: "Many of our colleagues are forced to spend 30 or even 40 percent of their income on rent. This burden forces many people to save wherever they can to make ends meet."
- Economic Impact: The housing crisis is not only a social issue but also an economic one. Körzell warns that "the lack of affordable rental housing exacerbates the shortage of skilled workers, as many potential workers cannot afford the high housing costs in urban centers."
- Social Cohesion: Burkhard Jung, Vice President of the German Association of Cities, highlights the threat to social cohesion: "If more and more people can hardly afford to live in the city, this DNA is lost. This endangers cohesion in our cities."
The Need for Immediate Action
The organizations stress the urgency of the situation and call for a cross-party effort to extend the rent control measures.
"If we do not succeed in getting a cross-party extension of the rent control on track, that would be an extremely bad signal," says Jung. He also emphasizes the need for a comprehensive approach to address the housing crisis: "Rent control alone does not create new apartments. The new federal government will also have to address the shortage of affordable housing. We need a joint effort by many actors to overcome the real estate, construction, and housing crisis. This will only work with a bundle of measures, more cost-effective and social housing construction."
Rent Control: A Vital Tool
While acknowledging that the current rent control measures are not perfect, the organizations stress their importance as a vital tool to limit excessive rent increases. Without rent control, rents upon re-letting are significantly higher in many cities, further exacerbating the affordability crisis.
Key Takeaways
- The German Tenants' Association, DGB, and Deutscher Städtetag are calling for an immediate extension of rent control measures in Germany.
- The expiration of rent control poses significant risks to affordability, financial stability, economic growth, and social cohesion.
- A comprehensive approach is needed to address the housing crisis, including rent control, new construction, and social housing initiatives.
The call to action by these influential organizations highlights the critical importance of rent control in addressing Germany's housing crisis. The government's response will have far-reaching consequences for millions of tenants and the future of German cities.