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[BUSINESS] · Germany · 4 sources

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German municipalities urge rural development to ease urban housing shortage

The German Association of Cities and Municipalities (DStGB) is calling on federal and state governments to implement a comprehensive strategy to combat housing shortages and rising rents in metropolitan areas. André Berghegger, the association's Secretary General, argues that current measures like rent controls and urban housing offensives only address symptoms rather than the root cause.

To achieve a regional balance in the housing market, the DStGB suggests making rural areas more attractive to residents. The association notes that while housing is scarce in cities, there are currently 1.9 million vacant apartments in rural regions, with over 700,000 expected to be ready for occupancy within the next three months.

Proposed solutions include improving connectivity between rural and urban centers through the reactivation or construction of rail lines. Additionally, the association emphasizes the need for better healthcare, expanded public transport, and improved cultural and leisure facilities in structurally weak regions. The DStGB suggests utilizing funds from the special infrastructure budget to support these long-term improvements.

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André Berghegger · German Association of Cities and Municipalities · Germany

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