Housing companies need money for investments

The Saxon housing industry lacks sufficient funds for investment. Mirjam Philipp, head of the Association of Saxon Housing Cooperatives, said that housing cooperatives would have to invest another 17 billion euros just to meet the climate neutrality requirements in Germany in 2045. The association members have invested the same amount since 1990. For tenants, this would mean an increase in rent of two to three euros per square meter. As a socially oriented landlord, however, one can only increase moderately.

According to Philipp, the average net rent in a cooperative apartment in Saxony is 5.62 euros. If you deduct all the costs for vacancies, repayments, equity return and other things, only two cents remain as a surplus that can be used for investments. "We have to operate in such a way that we don't have our backs to the wall, because we are responsible for our tenants and members." Over the past ten years, the companies have only increased rents by an average of 1.9 percent and have therefore remained well below inflation.

Higher rents are needed for investments

Alexander Müller, Director of the German Association of the Housing and Real Estate Industry (vdw), also believes that a rent increase is necessary. Most companies are still doing well economically. To keep it that way, however, it is necessary to see where the leverage can be applied. "That's just the rent". The vdw has around 310,000 apartments in Bavaria. The average net rent is 5.50 euros per month.

Minister points to comparatively low rent levels in Saxony

Saxony's Infrastructure Minister Regina Kraushaar (CDU) pointed out that rents in Saxony's districts are the lowest in the country. Even in Dresden and Leipzig they are still cheaper than in other major cities in Germany. She put forward several arguments in favor of moderate rent increases. Among other things, the minister recalled the sharp rise in pensions and the possibility of housing benefit. However, there is always a psychological aspect to rent increases.

Vacancy rates are a problem for the housing industry and cost money

Kraushaar was informed about the problems of the housing industry in rural areas on Wednesday. The high vacancy rate in some areas was also discussed. Of the approximately 300,000 apartments in the housing cooperatives' portfolio, around ten percent are vacant, in some places the vacancy rate is even 20 percent, he said. This costs the housing cooperatives a good 100 million euros per year. The lion's share are operating costs, which still have to be paid.