Apartment Story

This curious rent-story popped up in regional news (Hessen), via HR (our public TV network).

For a decade now around Frankfurt....folks have whined about the lack of affordable apartments.  In particular, university students are extremely affected. 

So via the city's effort, and a commercial company.....there's a building set up to help college kids.

But there is this reality to it.....you basically get 13 square meters (140 sq ft), which amounts to a tiny studio apartment, with heat and wi-fi provided as part of the deal.....for 570 Euro (roughly 700 US dollars).  It's a heck of a lot of money for almost nothing. 

The other reality, which was only understood after kids began to move into it.....approximately half of the occupants of the building are migrants and immigrants. 

Planned this way?  No one is really laying the details, but it would appear that the company desperately wanted city approval to build on the site, and promised to two chief concerns of the political landscape in Frankfurt.  Quid pro quo.....more or less.

So are the migrants, via the state mechanism....paying the 570 Euro as well?  Yes.  But if you dig into it, the state (or the city itself) are paying the money for them. 

Money-maker?  No doubt.  I would take a wild guess that the company has a plan on the books to get their investment money rather quickly....maybe even in eight to ten years, and the real profit here is the decade after that.  Will the building be around in twenty-five years?  That's really the question.