Financial expert examines Pro Potsdam's dilemma: New rents must not be too expensive

Financial expert examines Pro Potsdam's dilemma: New rents must not be too expensive

According to a report by www.maz-online.de,

The housing association Pro Potsdam is faced with the dilemma of making affordable rents possible while at the same time new apartments have to be created. This leads to compromises in construction costs and rents, as city policy requires that rents not be increased if possible. It's a quandary because there are no simple solutions. A large state and federal housing program could help enable higher standards and stable or social rents.

Construction costs and rents are increased through energy-sustainable, barrier-free construction and aesthetic demands on the architecture. City politicians want rents not to be increased if possible, which means that the Pro Potsdam housing association is faced with a dilemma. There are no easy solutions in this situation. A major state and federal housing program could lead to higher standards and stable or social rents. This would relieve the burden on the cash-strapped municipality and the tenants. Freezing rents in the 18,000 existing apartments would be good for tenants, but anti-social for those who are looking for an apartment and hoping for new Pro Potsdam buildings. It is therefore important to avoid an end to Pro Potsdam's construction program and to prevent unnecessarily high rents in the new buildings. Selling some old buildings can help stabilize the situation.