Small Spaces, Big Benefits: Baden-Württemberg Encourages Swapping Big Apartments for Cozier Ones
Urban dwellers ought to reconsider downsizing their living spaces to more compact accommodations. - Governments to promote living in compact housing units within urban areas
Get ready to find that perfect big apartment, folks of Baden-Württemberg! Want a smaller space? Municipalities are now offering a sweet bonus for swapping your oversized apartment for a cozier one.
If you're looking to trade up your living situation, local governments can apply for a bonus from the state—up to a hefty 7,500 euros! And the best part? You get to keep some of that cash, or use it for guidance, say hey to consultations—as per the Ministry of Urban Development and Housing.
But, this isn't just any ol' change of address. To qualify, your apartment switch-up needs to be spurred by a municipality's initiative like consultation and mediation. Plus, you must move within the municipality's territory and let go of at least 15 square meters of your living space. That'll net you 3,000 euros. For every extra square meter you shrink your lifestyle, you earn an additional 100 euros!
The Tenants' Association is choose-y about this new offer, while the German Association of Cities is all for it.
Housing woes in the southwest
The southwest is facing heavy pressure on the housing market. Last year, only 37,247 apartments were constructed, according to the State Statistical Office, but a study by the Institute of the German Economy in Cologne suggests a yearly demand of 53,100 apartments—about 16,000 more.
Families in bustling cities often spend months searching for affordable, spacious apartments. Minister Nicole Razavi (CDU) stated, "With the living space bonus, we're rewarding voluntary apartment swaps, making larger apartments available for families."
Tenants' Association: Rising rents and extra expenses
The Tenants' Association generally supports apartment swaps incentives. However, they're concerned about steadily increasing rents and the potential for expenses to climb after a move, as the bonus may not cover totals.
Municipalities might also try to redirect the bonus funds for other purposes, the Tenants' Association warns. After all, the state can't directly hand over the bonus to tenants. A new funding program would've required more effort, but this speedy, less bureaucratic solution is the ministry's pick.
Bonus budget initially set at one million euros
The budget for the bonus is set at a cool one million euros, and it's ready for applications.
The German Association of Cities welcomes this initiative, stating that it's a stepping stone towards easing the housing predicament. However, they've questioned the bureaucratic process of municipalities handling the bonuses.
For instance, Mannheim and Lörrach have been offering moving bonuses since the beginning of the year and since 1990, respectively. But, some municipalities like Marbach am Neckar north of Stuttgart have discontinued similar initiatives, while others like Stuttgart stopped due to "very low demand."
In short, embracing smaller spaces might be the ticket for bigger benefits in Baden-Württemberg's housing market.
Keywords:- Housing market- Municipality- Baden-Württemberg- Move- Institute of the German Economy- Cologne- Anxious tenants- Rising rents- Small town bureaucracy
- In an effort to alleviate the housing crisis in Baden-Württemberg, municipalities are providing incentives for residents to downsize their apartments, offering a maximum bonus of 7,500 euros, according to the Ministry of Urban Development and Housing.
- As part of the community policy, vocational training programs are being used to help tenants make informed decisions about their personal finance when investing in real estate, aiming to create a more stable housing market.
- Despite the benefits, anxious tenants are concerned about the potential for rising rents and extra expenses following a move, as the bonus may not cover the total costs.
- The Institute of the German Economy in Cologne has highlighted the need for an increase of 16,000 apartments per year in the Baden-Württemberg region to meet the current demand, putting additional pressure on the housing market.
- Some municipalities in Baden-Württemberg, such as Marbach am Neckar and Stuttgart, have either discontinued moving incentives or paused them due to low demand, pointing to the need for reevaluation of such policies in the housing-market landscape.
