Skip to main content
SpringerLink
Log in

The German housing system: fundamentally resilient?

  • Article
  • Published:
Journal of Housing and the Built Environment Aims and scope Submit manuscript

Abstract

The initial research question was: How can we explain the fact that the German housing system was seemingly unaffected by the financial crisis? The relative macro-economic stability of the German economy is part of the story, but the initial question led to a more fundamental analysis of why there had been no precrisis excesses in the German housing market. The longer term lack of volatility in Germany is just as in need of explanation as the excesses elsewhere. An important part of the explanation may be the particular tenure structure of the German housing market—which is characterized by a low homeownership rate and a large market share for private landlords. This structure was shaped over time by institutional development. In particular, mortgage finance systems and habits did not develop independently of that tenure structure. Equally that tenure structure arises in part from regulation and housing subsidy systems that do not favour homeownership.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

Notes

  1. Statistisches Bundesamt: Baugenehmigungen, Baufertigstellungen—Lange Reihen bis 2011.

  2. Statistisches Bundesamt: Baugenehmigungen, Baufertigstellungen—Lange Reihen bis 2011.

  3. The number of new-born children was 1.2 million in 1964, fell to 790,000 in 2001, and currently 678,000 new-born babies were counted. The number is expected to fall to a level of 575,000 children by 2050. The number of new-born babies per 1,000 inhabitants is currently 8.3.

  4. Currently, the life expectancy is 76.6 years for men and 81.8 years for women. It is expected to rise to 83.1 and 87.6 years in 2050, respectively.

  5. Statistisches Bundesamt 2011.

  6. According to the international definition ILO/Eurostat.

  7. The “Pfandbrief” is the German type of a covered bond. These bonds are used by Pfandbrief banks as an important funding source for mortgage credit. The mortgages serve as collateral for outstanding Pfandbrief bonds. Due to its intense regulation, the Pfandbrief market is widely regarded as a cornerstone of the German financial system.

  8. The government’s declaration was part of the Explanatory Memorandum of the Financial Markets Stabilization Act (Finanzmarktstabilisierungsgesetz), introduced 13 October 2008, decided and publicly announced 17 October 2008 (BGBl I, Nr. 46, S. 1982). The law entered into force on 18 October 2008.

  9. The corresponding provision in § 573 paragraph 2 No. 3 BGB is significant in practice only in the case of demolitions or conversions. The cancellation is excluded if the landlord wants to terminate the lease for the only reason to then rent out the apartment more expensively. The same applies if the landlord wants to terminate the lease because he intends to split the property into condominiums and then sell the dwelling.

  10. An empirically determined average of rents paid or agreed upon in the last 4 years in the same quality segment of the local housing market.

  11. Press release from 18 April 2011.

  12. IHK Frankfurt am Main/Frankfurter Immobilienbörse 2012.

  13. Subventionen des Bundes: Finanzhilfen und Steuervergünstigungen des Bundes entsprechend der 18. bis 23. Subventionsberichte der Bundesregierung.

  14. Berlin, Brandenburg, Bremen, Mecklenburg-Vorpommern, Saarland and Saxony in 2010 have no longer supported the development of new social dwellings. North Rhine-Westphalia is with 5397 new social rental housing units for lower-income strata at the top of the statistics, followed by Hamburg (2253) and Bavaria (1617). Source: Bild-Zeitung from 27 November 2012. Completions per capita were highest in Hamburg.

  15. Antwort des Staatssekretärs im Bundesministerium für Verkehr, Bau und Stadtentwicklung, Jan Mücke (FDP), auf die parlamentarische Anfrage der Abgeordneten Caren Lay.

  16. In German: “Soziale Marktwirtschaft”. This economic policy model employed the precepts of ordoliberalism (Freiburg school) to ensure a functioning competitive system, but added to the catalog of government’s economic policy tasks and emphasized social policy objectives. Thus, the mandate for the support of economic policy is more comprehensive and flexible than under ordoliberalism (Gabler Verlag (ed.), Gabler Wirtschaftslexikon, Stichwort: Soziale Marktwirtschaft, online inm Internet: (http://wirtschaftslexikon.gabler.de/Archiv/7247/soziale-marktwirtschaft-v9.html).

  17. Source: Statistisches Jahrbuch 2010. Statistical concept “homeownership rate”: Share of owner-occupied dwellings in all occupied dwellings in residential buildings.

  18. Other possible determinants of the national homeownership rate may include the degree of urbanization, housing density in urban areas, the age structure of the population, differences in the mobility of households, differences in housing costs, differences in the structure of housing finance, etc. See Matznetter 1993.

  19. In Germany, the status of a social dwelling is not permanent. Regardless of whether a private or a public investor has built a social dwelling using public subsidies, the dwelling loses its social legal status, once the public development loans are fully repaid. But that does not rule out that the former social dwelling is still in public ownership. On the other hand, social dwellings can be sold to private investors before the end of the social commitments.

  20. In Britain on the eve of World War I, 90 per cent of the housing stock was rented privately (Department of Environment, 1977). This would have been typical for industrialized countries of this period (Howenstine, 1981, p 38).

  21. Monopoly of state housing authorities with regard to the brokering of housing.

  22. Average across the stock of outstanding mortgages.

References

  • Bengtsson, B. (2009). Applying path dependence perspectives in housing studies—review and discussion. In: Paper presented at the ENHR international research conference changing housing markets: Integration and segmentation, Prague, 28 June–1 July 2009.

  • Boelhouwer, P., Boumeester, H., & van der Heijden, H. (2006). Stagnation in Dutch housing production and suggestions for a way forward. Journal of Housing and the Built Environment, 21(3), 299–314.

    Article  Google Scholar 

  • Boelhouwer, P., & van der Heijden, H. (1992). Housing systems in Europe: Part I: A comparative study of housing policy, housing and urban policy studies 1, Delft University Press.

  • Boelhouwer, P., & van der Heijden, H. (1993). Housing policy in seven European countries: The role of politics in housing. Netherlands Journal of Housing and the Built Environment, 8(4), 383–404.

    Article  Google Scholar 

  • Case, K., & Quigley, J. (2008). How housing booms unwind: Income effects, wealth effects, and feedbacks through financial markets. European Journal of Housing Policy., 8(2), 161–180.

    Article  Google Scholar 

  • Dechent, J., & Ritzheim, S. (2012). Preisindizes für Wohnimmobilien. In Statistisches Bundesamt, Wirtschaft und Statistik (pp. 891–897) Oktober 2012.

  • Department of Environment, United Kingdom. (1977). Housing Policy: Technical Volume (London, HMSO, 1977), Part III.

  • Earley, F. (2004). What explains the differences in homeownership rates in Europe?. In Housing Finance International (pp. 25–30) Sep 2004.

  • Eichener, V. (2005). Zukünftige Schwerpunkte der Wohnungspolitik… aus Sicht der Wissenschaft, in: Wohnungspolitik vor der Neujustierung. 40. Königsteiner Gespräch, 7./8. April 2005, in: Schriftenreihe des Instituts für Städtebau, Wohnungswirtschaft und Bausparwesen, Vol. 67, (pp. 59–69). Berlin: domus.

  • Emmerich, V., & Sonnenschein, J. (2011). Miete: Handkommentar (10th ed.). Berlin: De Gruyter.

    Book  Google Scholar 

  • Empirica. (2011). Wohnungsmarktübersicht Teil 1/3: empirica-Leerstandsindex 2009.

  • EUROSTAT Annual national accounts. http://epp.eurostat.ec.europa.eu/portal/page/portal/national_accounts/data/main_tables.

  • European Central Bank ECB. (2013). The Eurosystem Household Finance and Consumption Survey, Statistics Paper Series, No. 2, April 2013.

  • European Mortgage Federation EMF. (2012). Hypostat 2011: A review of Europe’s mortgage and housing markets.

  • Expertenkommission Wohnungspolitik. (1995). Wohnungspolitik auf dem Prüfstand. Tübingen: Mohr.

    Google Scholar 

  • Führer, K. (1995). Mieter, Hausbesitzer, Staat und Wohnungsmarkt. Franz Steiner Verlag: Stuttgart.

    Google Scholar 

  • Günther, M., & Hübl, L. (2009). Wohnungsmangel in Deutschland? Regionalisierter Wohnungsbedarf bis zum Jahr 2025, Studie des Eduard Pestel Instituts.

  • Hofer, T. (2006). Financing structures of home ownership creation. In vdp Schriftenreihe, Vol. 26.

  • Hofer, T. (2009). Strukturen der Wohneigentumsfinanzierung 2009. In vdp Immobilien-Banking.

  • Howenstine, J. (1981). Private rental housing abroad: Dwindling supply stirs concern. Monthly Labor Review, 104(9), 38–42.

    Google Scholar 

  • IHK Frankfurt am Main/Frankfurter Immobilienbörse. (2012). Wohnungsmarktbericht Ausgabe 2012. http://www.frankfurt-main.ihk.de/imperia/md/content/pdf/standortpolitik/immobilienboerse/wohnungsmarktbericht_2012.pdf.

  • Ifs Institut für Städtebau, Wohnungswirtschaft und Bausparwesen. (2013). Preisentwicklung für Wohneigentum in Deutschland.

  • IVD Immobilienverband Deutschland. (2012). IVD-Wohn-Preisspiegel 2012/2013.

  • Kemeny, J. (1995). From public housing to social renting: Rental policy strategies in comparative perspective. London: Routledge.

    Book  Google Scholar 

  • Kofner, S. (2003a). Die Formation der deutschen Wohnungspolitik nach dem Zweiten Weltkrieg—part I. Deutsche Wohnungswirtschaft, 55(10), 246–251.

    Google Scholar 

  • Kofner, S. (2003b). Die Formation der deutschen Wohnungspolitik nach dem Zweiten Weltkrieg—part II. Deutsche Wohnungswirtschaft, 55(11), 284–296.

    Google Scholar 

  • Kofner, S. (2003c). Die Formation der deutschen Wohnungspolitik nach dem Zweiten Weltkrieg–part III. Deutsche Wohnungswirtschaft, 55(12), 322–334.

    Google Scholar 

  • Kofner, S. (2008). Die Hypotheken- und Finanzmarkkrise. Frankfurt a.M: Fritz Knapp Verlag.

    Google Scholar 

  • Kofner, S. (2009). Property ladder. Wohnungswirtschaft und Mietrecht., 62(11), 634–636.

    Google Scholar 

  • Kofner, S. (2010). The market share of the private rental sector: determinants and criteria, Presentation for the Private Rented Sector Workshop in St Marienthal, 6–8 Feb 2010. PDF and MP3 available: http://www.hogareal.de/html/vortrage_2010.html.

  • Malpass, P. (2011). Path dependence and the measurement of change in housing policy, housing. Housing, Theory and Society, 28(4), 305–319.

    Article  Google Scholar 

  • Matznetter, W. (1993). Internationaler Vergleich von Wohneigentumsquoten, Gutachten im Auftrag des Bundesministeriums für Raumordnung, Bauwesen und Städtebau für die Expertenkommission Wohnungspolitik, veröffentlicht im Materialband mit Sondergutachten im Auftrag der Kommission.

  • Mulder, C., & Billari, F. (2006). Home-ownership regimes and lowest-low fertility, Paper for the Workshop “Home ownership in Europe: policy and research issues”, Delft, 23–24 Nov 2006.

  • Mulder, C., & Billari, F. (2010). Homeownership regimes and lowest-low fertility. Housing Studies, 25(4), 527–541.

    Article  Google Scholar 

  • Quentin, R. (2008). The subprime crisis—implications for property valuation? The revival of the mortgage lending value. In vdp Verband Deutscher Pfandbriefbanken (Ed.), Real estate banking—facts and figures 2008/2009. (pp. 24–33).

  • Rudolf, M, & Saunders, A. (2009). Refinancing real estate loans—lessons to be learned from the subprime crisis, Gutachten im Auftrag des vdp Verband Deutscher Pfandbriefbanken.

  • Scanlon, K, & Kochan, B. (2011). Towards a sustainable private rented sector in the UK: The lessons from abroad, London, LSE. http://www.lse.ac.uk/geographyAndEnvironment/research/london/events/HEIF/HEIF4b_10-11%20-newlondonenv/prslaunch/Book.pdf.

  • Schnitzler, L., Seiwert, M., Schumacher, H. (2012). Wie die Krise ihren Schrecken verliert: So trotzen BMW & Co. mit Flexibilisierung der Flaute. In Wirtschaftswoche. 27 Nov 2012.

  • Statistisches Bundesamt. (2000). 50 Jahre Wohnen in Deutschland. Stuttgart: Metzler-Poeschel.

    Google Scholar 

  • Statistisches Bundesamt. (2011). Baugenehmigungen, Baufertigstellungen—Lange Reihen, accessible under https://www.destatis.de/DE/ZahlenFakten/Wirtschaftsbereiche/Bauen/Bautaetigkeit/Bautaetigkeit.html.

  • Statistisches Bundesamt. (2011). Bevölkerungs- und Haushaltsentwicklung im Bund und den Ländern, Ausgabe 2011 (Ergebnisse der Haushaltsvorausberechnung 2010).

  • Trotz, R. (2006). Valuation of properties in real estate finance. In vdp Verband Deutscher Pfandbriefbanken (Ed.), Real estate banking—facts and figures 2006 (pp. 30–40).

  • Van der Heijden, H., Dol, K., & Oxley, M. (2011). Western European housing systems and the impact of the international financial crisis. Journal of Housing and the Built Environment, 26(3), 295–313.

    Article  Google Scholar 

  • Verband der Privaten Bausparkassen (Hrsg. 2012). Bausparen in Deutschland.

  • Voigtländer, M. (2006). Mietwohnungsmarkt und Wohneigentum: Zwei Seiten einer Medaille, Gutachten für den Verband deutscher Pfandbriefbanken.

  • Voigtländer, M. (2009). Why is the German homeownership rate so low? Housing Studies, 24(3), 357–374.

    Article  Google Scholar 

  • Wandersleb, H. (1959). Entwicklungstendenzen im Wohnungsbau in der Bundesrepublik Deutschland. In J. Fischer-Dieskau (Ed.). Beiträge zur Theorie und Praxis des Wohnungsbaues: Bonn.

  • Whitehead, C., Markkanen, S., Monk, S., Scanlon, K., & Tang, C. (2012). The private rented sector in the new century—a comparative approach. Copenhagen: Boligøkonomisk viden center.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. TRAWOS-Institute, Hochschule Zittau / Görlitz, Theodor-Körner-Allee 16, 02763, Zittau, Germany

    Stefan Kofner

Authors
  1. Stefan Kofner
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Stefan Kofner.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Kofner, S. The German housing system: fundamentally resilient?. J Hous and the Built Environ 29, 255–275 (2014). https://doi.org/10.1007/s10901-013-9383-0

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10901-013-9383-0

Keywords

Search

Navigation