Dusseldorf under Fire for Insufficient Affordable Housing Efforts by Alliance Critics
Scrolling through Düsseldorf's pricey housing market, it's clear that finding an affordable place to live is a struggle for many. The Düsseldorf Alliance for Fair, Social, and Ecological Living is shining a spotlight on the city's missed opportunities to make a real difference.
With over 360,000 apartments in the city, a whopping 80% of them are rented out. However, only 4.3% are publicly funded, and that number has been steadily declining over the years. STATISTA reports a staggering 36.97% increase in rents over the last decade, with existing rents in buildings constructed between 1961 and 1976 rising by 20%. The limited housing stock cannot meet the overwhelming demand, resulting in a dearth of affordable options.
One reason for this housing crunch is the 21.45% decline in publicly funded apartments over the years. So, what can be done to change this?
Kick some violations to the curb
A solution could be to harshly penalize landlords who illegally raise rents by 20% or more beyond the local average. In some cities, excessive rent increases that exceed 50% above the local average are even punishable as a criminal offense. Cities like Freiburg, Esslingen, and Stuttgart are proactive, regularly evaluating overpriced rental offers and confronting real estate agents and owners with violations.
Open the door to more affordable housing
While Düsseldorf has the "Action Concept for Apartments," it currently only applies to large-scale projects. Projects like the Glasmacher Quarter, Benrather Gardens, Grand Central, and others might offer price-reduced and subsidized apartments, but they're stalled due to speculation from investors. To combat this, the city should encourage housing cooperatives to build on city-owned land. Currently, only around 8% of rental apartments in Düsseldorf are owned by cooperatives. The alliance suggests increasing this number. Around 1,000 apartments fall out of their rental commitment each year until 2030. The city could implement changes to ensure these apartments remain affordable.
Block condo conversions
Investors are buying rental buildings in Düsseldorf, evicting residents using questionable methods, renovating them, and selling the apartments as condos. To stop this money-grabbing practice, the black-green government of North Rhine-Westphalia should enact regulations, as the federal government plans to do. However, NRW Minister of Housing Ina Scharrenbach (CDU) has refused to act. The Düsseldorf alliance also suggests the city have the right of first refusal for buildings. There's a proposal from Alliance 90/The Greens to change the pre-sale ordinance via urban development plans.
Create a land fund
According to the alliance, establishing a land fund would help generate funds for the purchase of land and houses. This municipal asset would not burden the budget and contain the necessary funds. Cities such as Münster, Berlin, and Ulm have successfully implemented this model. Income is generated through long-term leases, and funds from the state and federal governments also contribute.
Making training grounds for tradespeople
The DGB has been trying for eight years to establish trainee housing in Düsseldorf, but with a skilled labor shortage, progress has been slow. The alliance believes the city is standing in the way and being too rigid.
Crack down on empty apartments
There are apartments sitting vacant in Airbnb rentals or otherwise left empty, unavailable to Düsseldorf residents. Every year, 4.7% of apartments are empty for more than three months. While the city has set up a position to address this, progress has been slow.
For more information about the Wohnraumstärkungsgesetz of North Rhine-Westphalia and the Mieterschutzverordnung, click here. To help finance affordable housing, the alliance demands the city advocates for a federal council initiative through North Rhine-Westphalia. This would aim to reform inheritance tax and introduce a wealth tax, which could be used to fund affordable housing projects. The city council is responsible for the trade tax, and the alliance also proposes an increase here.
The alliance emphasizes, "It's high time for big changes," but housing is a fundamental right that the city must finally recognize. For more information about the work of "Düsseldorfer Bündnis gerecht.sozial.oekologisch.," visit here. The alliance doesn't just focus on housing; it's also dedicated to hospitals and care, poverty, climate, education, kindergartens, financial needs, and tax justice. To visit the alliance's Facebook page, click here.
In light of the escalating housing crisis, tightening regulations on excessive rent increases could be a viable solution. Landlords who illegally raise rents by 20% or more could face harsh penalties, similar to implementations in cities like Freiburg, Esslingen, and Stuttgart.
To address the issue of stalled affordable housing projects due to investor speculation, the city should consider encouraging housing cooperatives to build on city-owned land, aiming to increase the current 8% of rental apartments owned by cooperatives. This could help ensure a steady supply of affordable housing in the future.
