How does the increase in construction costs affect affordable housing in Bad Nauheim? Experts provide insight.

How does the increase in construction costs affect affordable housing in Bad Nauheim? Experts provide insight.

According to a report from www.fnp.de, the city of Bad Nauheim is faced with the challenge of creating affordable living space that is also economically viable. The Kiel Working Group for Contemporary Building (Arge) estimates that the rent per square meter for a new apartment would currently have to be around 18 euros in order to recoup the construction costs. This is causing discussions in the city, as the current price for affordable housing is 8.50 euros per square meter.

However, experts such as Gerhard Dyroff and Georg Küster from the Bad Nauheim Small Settlement and Housing Cooperative (KSWG) see that it is possible to create affordable living space without having to increase rents to 18 euros per square meter. They emphasize the importance of cooperative housing and non-profit housing associations for affordable housing. Thanks to favorable purchase conditions, low interest rates and decades of experience in this area, KSWG was able to create affordable living space for 8.50 euros per square meter.

However, Dyroff and Küster point out that under the given conditions such as inflation, developments in construction and financing costs as well as the shortage of skilled workers, rents would have to increase to 10.50 euros to 11 euros in order to ensure profitability. The decision on how the city of Bad Nauheim deals with this challenge will be made at one of the upcoming building committee meetings.

If rents actually rise to 10.50 euros to 11 euros per square meter, this could make affordable housing unaffordable for many people in Bad Nauheim. This could lead to an increase in demand for social housing and government support as many people may not be able to pay the higher rental prices. The city of Bad Nauheim may also need to find alternative solutions to ensure affordable housing is available to its citizens without jeopardizing investor profitability.