Rosa-Luxemburg Stiftung
2024
Andrej Holm, Sebastian Gerhardt, David Scheller and Itziar Gastaminza Vacas
This study evaluates the management of public and cooperative housing in Berlin and Vienna, focusing on organizational structures, maintenance costs, and rental prices. It analyzes data from state-owned companies managing approximately 360,000 apartments, housing cooperatives with around 30,000 units, and Wiener Wohnen, which oversees 210,000 apartments. Key findings reveal that while state-owned companies (LWUs) and cooperatives incur higher maintenance costs (€1.62/m² and €2.43/m², respectively), Wiener Wohnen maintains lower costs at €1.27/m². The study indicates that socially-oriented housing can be managed at rents of around €5.50/m², but financing challenges for new constructions and energy retrofits are evident. The LWUs prioritize expanding housing stock, cooperatives focus on maintaining quality for members, and Wiener Wohnen emphasizes its social mission. Overall, the research underscores the need for public funding to support sustainable housing management.
Here is an extensive summary of the key points from the study:
This study examines the organizational structures and costs associated with managing large public and cooperative housing stocks in a sustainable and socially-oriented manner. It analyzes data from:
- Six state-owned housing companies in Berlin (Landeseigene Wohnungsunternehmen, LWU) managing about 360,000 apartments
- Selected larger housing cooperatives in Berlin managing about 30,000 apartments
- Wiener Wohnen, the municipal housing company in Vienna managing about 210,000 apartments
Key findings:
Organizational Structures:
- The LWUs have centralized decision-making and budgeting structures, with specialized departments and subsidiary companies for different functions. Most have regionalized customer service centers.
- Housing cooperatives tend to handle most functions in-house to control costs. Larger ones have specialized departments but aim for integrated management.
- Wiener Wohnen has a centralized structure with two main subsidiaries for customer service and building maintenance. It relies heavily on on-site staff.
Maintenance and Repair Costs:
- LWUs spent an average of €1.62/m2 per month on maintenance/repairs from 2018-2022.
- Housing cooperatives spent more at €2.43/m2 per month on average.
- Wiener Wohnen spent less at €1.27/m2 per month.
The higher spending by cooperatives reflects their focus on maintaining high-quality housing for members. Wiener Wohnen's lower costs may relate to its large stock of older, unrenovated buildings.
Administration and Personnel Costs:
- LWUs spent €0.99/m2 per month on average
- Housing cooperatives spent €1.10/m2
- Wiener Wohnen spent €1.52/m2
Wiener Wohnen's higher costs reflect its greater reliance on in-house staff for maintenance and repairs.
Other Operating Costs (depreciation, financing, etc.):
- LWUs: €3.26/m2 per month
- Housing cooperatives: €2.33/m2
- Wiener Wohnen: €2.10/m2
The LWUs' higher costs reflect greater investment in new construction and acquisitions.
Total Operating Costs:
- LWUs: €9.11/m2 per month (including €3.20/m2 in utility costs)
- Housing cooperatives: €7.82/m2 (including €2.02/m2 utilities)
- Wiener Wohnen: €7.02/m2 (including €1.94/m2 utilities)
Average Rents:
- LWUs: €6.40/m2 per month (net cold rent)
- Housing cooperatives: €5.81/m2
- Wiener Wohnen: €4.89/m2
The study concludes that socially-oriented housing management with good maintenance and tenant services is possible at rents around €5.50/m2 per month. However, this leaves little room for new construction or major energy retrofits without additional public funding.
The different cost structures reflect varying priorities:
- LWUs focus on expanding their housing stock
- Cooperatives prioritize maintaining high-quality housing for members
- Wiener Wohnen emphasizes its social housing mission
Overall, the study provides detailed insights into the costs and organizational approaches for managing large public and cooperative housing stocks in a sustainable and socially-oriented manner. It demonstrates that affordable rents are possible with this model, but also highlights challenges in financing new construction and energy retrofits.
Authors:
Andrej Holm, Sebastian Gerhardt, David Scheller and Itziar Gastaminza Vacas