How singles are exacerbating the housing shortage – real estate expert explains
Housing shortage: not a new phenomenon. But despite a construction boom, this problem is becoming increasingly acute. In an expert interview, real estate agent Kim Schmidt explains the links between the trend toward single-person households and the housing shortage. He also reveals who is bearing the brunt of these developments.
Mr. Schmidt, the real estate market is your profession. You are experiencing firsthand how the housing shortage in large cities is growing and the number of single-person households is continuing to rise. In a large city like Hamburg, for example, one in two people now lives alone. This is according to the latest figures from the Northern Statistical Office.
Is the growing housing shortage linked to the rising number of single people?
Germany's major cities have become veritable strongholds for single people. In addition to the enormous number of single people, migration is also having a significant impact on the housing market. More and more young people are moving to metropolitan areas. As a result, cities are responding to this growing demand by massively boosting housing construction.
What problems arise from the growing housing shortage?
The cityscape will change significantly. I am seeing an increasing decline in older single-family homes, which are giving way to more profitable single-unit buildings, i.e., apartment buildings. This makes it increasingly difficult for families to find suitable housing. The housing shortage is getting worse!
If the number of single people continues to rise and more people move to the city, every available space will be built on. If that is no longer enough, we are heading for a housing shortage.
The social classes that suffer
It is clear that people with low or middle incomes are the ones who suffer from these developments. Single parents also have a hard time. Due to their income situation and other aggravating conditions, they are often unable to fulfill their housing dreams.
Less affluent residents are being pushed out of the cities!
Those who can afford it will still find suitable properties to rent or buy. The motto is: be flexible, make compromises, lower your standards, or spend more. However, whether single parents will still be able to afford housing in the future depends largely on two factors. First, will their salaries increase sufficiently, and second, will rent controls be implemented?
If not, single parents will be left behind. And let's not forget their children! This affects a lot of people, because according to the Statistical Office, a quarter of households with children in a large city like Hamburg are single-parent households. These are alarming figures.
Housing shortage drives single parents out of cities – where are the solutions?
Some cities are leading the way by stipulating a so-called one-third mix for large housing projects. This means that 30% must be provided as social housing, 30% as privately financed rental apartments, and 30% as condominiums. This gives socially disadvantaged people looking for housing the chance to find a place to live. However, if single parents are not eligible to live in social housing, the housing shortage worsens.
This is where we at LemonSwan see our responsibility! By reversing the trend toward single-person households, we are also reducing the number of single-person households and alleviating the housing shortage in the long term. A nice side effect is that the beautiful cityscapes are preserved. Mr. Schmidt, thank you very much for sharing your expertise and insights with us.
