Dresden

Dresden

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552,000

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Last edited
Dec 1, 2024 7:04 AM
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Local programs

The current city administration of Dresden is actively addressing the topic of housing, particularly focusing on affordable housing. The city aims to ensure that housing costs do not exceed 30% of household income, a goal emphasized in the "Housing Concept of the City of Dresden" adopted in 2019 as part of the Integrated Urban Development Concept (INSEK)[3]. Key targets and activities include: - **Restricting Rent Increases**: The city supports the implementation of rent control measures, such as the "Mietpreisbremse" (rent price brake), which limits rent increases to 10% above the local comparative rent for new rental contracts in Leipzig and Dresden[2]. - **Promoting Social Housing**: The Left Party in the Saxon state parliament advocates for doubling the funding budget for social housing construction to at least 250 million euros and promoting social housing in the suburbs of large cities[1]. - **Integration and Housing**: The "Dresden Action Plan on Integration 2022–2026" includes housing as a critical sphere of activity, aiming to improve housing conditions for migrants and new immigrants[3]. - **Addressing Housing Shortage**: The city acknowledges the acute housing shortage and the need for new construction, though current market conditions and regulatory challenges hinder these efforts[4][5].

Housing Market

The current situation of the housing market in Dresden, Germany, is characterized by a decline in prices and a significant shortage of housing units. Here is a summary: - **Median Apartment Prices**: Down by 2.99% year-over-year to €2,890 per square meter in Q3 2024[4]. - **Housing Shortage**: The total number of dwelling permits issued in Germany fell by 25.8% year-over-year to 238,889 units in the first eleven months of 2023, indicating a severe housing shortage[4]. - **Rental Market**: Rents continue to increase but at a slower pace than house price rises. Specific rental yields and prices per square meter for Dresden are not provided in the available sources. - **Public, Social, and Cooperative Housing**: These sectors play a crucial role in addressing the housing shortage, but exact figures for Dresden are not available. Generally, these types of housing are significant in Germany, with high demand for social housing construction[5]. - **Ownership vs. Rental**: Specific data for Dresden is not provided, but it is known that many Germans rent their homes due to high housing prices and stringent mortgage regulations. - **Total Housing Units**: The exact number of housing units in Dresden is not specified in the available sources. Overall, Dresden's housing market is expected to remain weak due to the acute housing shortage and declining residential construction activity.

Further Actors?

In Dresden, various individuals and organizations have expressed their commitment to addressing the housing crisis and promoting affordable and sustainable housing. Here are some potential collaboration partners: - **Academia**: The Technical University of Dresden (TU Dresden) has research groups focused on urban planning and sustainable development, which could provide valuable insights and expertise. - **Real Estate Sector**: Companies like Vonovia and Deutsche Wohnen have shown interest in developing more affordable housing options, though their approaches have been controversial. - **Startup World**: Startups like Medici Living Group, which focuses on co-living spaces, could offer innovative solutions for affordable housing. - **NGO Sector**: Organizations such as the German Tenants’ Association (Deutscher Mieterbund) and the initiative "Deutsche Wohnen & Co enteignen" (Expropriate Deutsche Wohnen & Co) have been vocal about the need for more affordable housing and could be valuable partners in advocating for policy changes. - **Local Government**: The City of Dresden itself has initiatives aimed at increasing affordable housing, including plans to build more social housing units and promote sustainable urban development. These entities could collaborate to develop comprehensive strategies for addressing the housing crisis in Dresden, combining academic research, industry expertise, and grassroots activism.

Cooperatives

Housing cooperatives play a significant role in Dresden, Germany, with a long history dating back to the GDR era. The largest housing cooperative in Dresden is WG Aufbau Dresden, which was formed by the merger of several workers' housing cooperatives and has retained its top position even after reunification[1]. Another major cooperative is Wohnungsgenossenschaft “Glückauf” Süd Dresden e. G., which manages apartments it has built itself, along with commercial units and garages[1]. Dresden has a high share of cooperative housing, with around 20% of the housing stock being cooperative[4]. The city's housing cooperatives are known for providing affordable rents and stable neighborhoods. The German federal government has recently emphasized the importance of housing cooperatives in realizing affordable rents, leading to increased support and funding programs[3][4]. In terms of policy regulations, the German government has launched funding programs for cooperative housing, such as the KfW loan program, which offers favorable interest rates for cooperative housing projects[3]. Additionally, local authorities in Dresden are promoting cooperative housing as a way to tackle the shortage of living space and rising rents. Lighthouse projects in Dresden include the renovation and expansion of existing cooperative housing estates, such as those managed by WG Aufbau Dresden and Wohnungsgenossenschaft “Glückauf” Süd Dresden e. G.[1]. These projects aim to provide affordable and sustainable housing options for residents, while also promoting community engagement and social cohesion.