Business · Economy · 11 hrs ago

Baby boomer home sales are unlikely to ease housing shortages in German cities

Baby boomer home sales are unlikely to ease housing shortages in German cities

A study by the Sparda-Banks association and the German Economic Institute says baby boomer home sales will not solve Germany’s housing shortage.

Germany has about 5.3 million owner households aged 65 or older and a similar number of renter households aged 30 to 44.

But many homes that may become available are in rural areas, while demand is strongest in major cities.

Even including nearby areas, potential supply would not meet younger households’ demand in 34 of the 70 large cities studied.

The study also found that 37 percent of older owner households consider their homes too large, while 35 percent of younger renter households say theirs are too small.

High costs and a lack of suitable smaller homes make it harder for older people to move.

The association says policymakers should improve financing and help people use homes more fully, rather than relying on a wave of sales and inheritances.

2 sources

Related

What people are saying

Florian RentschChair of the Sparda-Banken association
Hope for a Silver Tsunami is not a housing policy strategy.
via t-online
Nobody should have to give up their home.
via n-tv
But those who want to downsize voluntarily, share their house or create additional living space should be supported—instead of failing because of costs and bureaucracy.
via n-tv
Pekka SagnerIW real estate expert
A potentially available home in the countryside does not solve the problem of a young family in a big city.
via t-online