In Germany, rents are continuously rising. In Sweden, there is currently a demonstration of how to comparatively easily tackle the so-called “housing crisis.”
The current situation:
- Rents in Germany have been rising sharply for months, and available apartments are also scarce. Many refer to this as a “housing crisis” (via Tagesschau.de).
- Critics accuse the government of failing to address issues such as the “rent control” measures, which are seen as ineffective and riddled with loopholes. For instance, die Zeit notes that the coalition has not found a solution to the “housing crisis,” rather than reforming the rent control.
- Students and many low- and average-income earners now have to spend more than half their income to cover rent.
In Sweden, a project called “Stockholmshusen” is currently demonstrating that there can be alternative solutions. This initiative addresses issues like affordable rents and a lack of housing.
Cost reduction and faster approvals lower rent prices
What kind of project is this? The Stockholmshusen project is a large-scale initiative by the city of Stockholm and several municipal housing companies, aimed at quickly, cost-effectively, and affordably building thousands of rental apartments.
The goal is the rapid and affordable construction of rental apartments; currently, around 5,000 units are under construction or already completed (via stockholmshem.se). To implement this, municipal housing companies are collaborating with large construction companies in Sweden.
By employing certain “tricks” and planning methods, construction costs for individual apartments are reduced: expensive basements and underground garages are avoided, and instead, a washing machine connection is installed in each apartment. Alternative mobility solutions like car sharing and bike systems are preferred over an underground garage.
Through serial and modular construction methods, standardization, and focusing on essentials, lower construction costs and therefore cheaper rents are achieved: apartments from the “Stockholmshusen” project can be offered at 20% below the market level in Stockholm.
Another strength of the project: By concurrently processing planning, approval, and construction processes, the time for permits and construction duration is reduced from 8 to an average of 4 years.
We are living in financially uncertain times. Generation Z is resorting to drastic measures to survive and especially to pay off high debts. According to the report, more and more young people are tapping into their retirement savings or selling personal possessions as the cost of living continues to rise, and salary increases are generally absent: Generation Z is depleting their savings, skipping meals, and selling their belongings just to get by
