Berlin is only planning small apartments for singles! Experts warn of financial disadvantages

What is the state government in Berlin planning for single apartments from 2024?

The Berlin Senate has decided that from 2024 new rules should apply to singles in the state's own housing associations. Specifically: When allocating apartments, care should be taken to ensure that “appropriate” living space is allocated. How many square meters a single person is entitled to has not yet been defined in more detail. However, an earlier draft stated that singles should only receive one-room apartments. Larger apartments should be reserved for families. Since the state-owned housing associations have 300,000 apartments in their portfolio and therefore control 15 percent of the Berlin housing market, the new regulation is not insignificant.

What impact will this regulation have on tenants?

The actual plan of the Berlin state government is to relieve the strained rental market. Therefore, singles should only live in small apartments. However, statistics from the Federal Institute for Population Research show that the number of households in Germany has increased from under ten to over 40 million, while the average household size has fallen from five to two people. Berlin is the frontrunner with a share of 55.4 percent of single-person households in total households. As the supply of one-room apartments is limited, demand will continue to increase and rents in this segment will increase. This means that singles are financially burdened.

How will this measure affect landlords?

The new regulation is expected to be beneficial for landlords. Since larger apartments are not allocated by state-owned companies, singles will increasingly look for living space from private landlords. This will increase demand on the housing market outside of the state-owned housing associations and thus lead to rising rents.

Does the city of Berlin benefit from this decision?

No, this policy discourages singles who want to fulfill themselves in their work. A mandatory limit on the size of the apartment can have a deterrent effect, especially if singles could actually afford larger living space. It is therefore conceivable that top performers will migrate to other German cities or other European countries.

How could you do it better?

There is a need to make housing construction cheaper and easier. The many regulations and high costs have caused construction projects to be delayed and construction costs to skyrocket. Relief here could lead to more new buildings and a solution to the housing problem in Berlin and other cities.