Your current location is:{Current column} >>Text
Rising rent pressures low
{Current column}689People have watched
IntroductionThe latest study by the German Institute for Economic Research (DIW) shows that low-income household ...
The Domestic futures regular trading platformslatest study by the German Institute for Economic Research (DIW) shows that low-income households in Germany are under increasing pressure due to rising rents, especially single-parent families and individuals living alone. These groups spend a much higher proportion of their income on rent compared to wealthy families, further exacerbating their financial burden. The data indicates that in 2021, the lowest 20% income group spent on average more than a third of their income on rent, while the wealthiest group spent only a fifth.
Over the past decade, rent prices across Germany have risen by 50%, with this increase reaching 70% in major cities. Despite the German government's goal to build 400,000 apartments annually to combat the housing shortage, the actual number of constructions falls short. In 2022, only 294,400 apartments were completed in Germany.
Additionally, the proportion of income spent on housing continues to rise, with the number of households spending more than 40% of their income on rent increasing from 5% to 14%. Nonetheless, demand for real estate has not declined despite rising interest rates and construction costs, and pressure on the rental market persists.
The Berlin city government implemented a rent cap policy in 2020, yet rents in the capital continue to climb, having increased by 40% over seven years. However, this policy has been deemed unconstitutional by Germany's highest court. The DIW study suggests providing targeted economic support for low-income groups and vigorously promoting social housing construction to alleviate the current rental market crisis.
Risk Warning and DisclaimerThe market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.
Tags:
Related articles
Tesla broke U.S. labor law by silencing workers, official rules By Reuters
{Current column}By Daniel Wiessner(Reuters) - Tesla (NASDAQ:) Inc supervisors at a Florida service center violated U ...
Read moreMorgan Stanley misses profit estimates as dealmaking stalls By Reuters
{Current column}2/2© Reuters. FILE PHOTO: The logo for Morgan Stanley is seen on the trading floor at the New York S ...
Read moreBoeing deliveries reach highest monthly level since March 2019 By Reuters
{Current column}2/2© Reuters. FILE PHOTO: American Airlines flight 718, the first U.S. Boeing 737 MAX commercial fli ...
Read more
Popular Articles
- 5 Huge Analyst Calls: Meta's Future Looking Brighter; Gap Sheds a Sell Rating
- Dow Futures Edge Lower After Positive Week By
- Dow Futures Down 390 Pts; JPMorgan Earnings Disappoint By
- Oil Inventories Jumped by 4.8M Barrels Last Week: API By
- Hong Kong stocks enter bear market as China outlook darkens By
- U.S. gasoline prices are finally falling. Why? By Reuters
Latest articles
-
TSMC talking to US about CHIPS Act 'guidance' amid subsidy concerns By Reuters
-
U.S. Recession Risks Grow as Consumers Push Back Amid Rampant Inflation: Fed By
-
U.S. SEC votes to undo Trump
-
Dow Futures Tick Higher Ahead of Key Inflation Print By
-
Maduro and Lula hit out at US sanctions on Venezuela By Reuters
-
Abe killer wielded homemade gun, grudge over mother's bankruptcy, police say By Reuters