Friday, December 13, 2019

Are There 10,000 Apartments in Frankfurt Empty?

Oddly enough, this topic came up via HR (our Hessen public TV network).

Let's start with the population of Frankfurt, 746,000 residents (2018 numbers).

The city of Frankfurt will tell you that there are roughly 393,000 apartments or residences within the city limits.  It's not an official number, which is kinda funny how they word this.  Around 15 years ago, the city leadership (then under the CDU Party) made up a rule that official counting or reporting on residences was banned.  You can discuss this at length, but you also have to wonder....is the city mission to know the status of each residence....even if privately owned?

So various groups have studied the city structure....talked to occupants and groups, and they believe up to around 10,000 apartments in the city sit empty.

Why?

Part of the reason given, though it's not absolute fact....revolves around property speculation.  If you owned a building with 16 apartments, and you had started renovation five years ago (getting people to leave then).....maybe you are adding two or three years onto the schedule, and intend to sell as condo-devices, rather than renting out, and hope the added time will push the prices up further.

Some of this however....might get into court cases where estate lawyers are trying to sort out arguments over which relative gets which property.  A lot of older Germans got into apartment speculation back in the 1970s, and bought a dozen which they rented out, and had a great income situation as they retired. 

You also get into some cases where people are tired of negative tenets and would rather just leave a property empty for a year or two. 

Where is this going to lead onto?  One might speculate and figure that the SPD-Green city council will make up a rule that reporting of occupied status or renovation will become mandatory.  After that, they might make up another rule that you can't leave an apartment empty for more than 12 months. 

If the 10,000 number exists.....is this part of the lack of housing problem often discussed in Frankfurt?  Maybe, but lets be honest....you could go and add onto the 393,000 apartments and structures....maybe another 25,000, and you'd still have residents complaining of affordable housing.

On top of this....no one is saying what the 10,000 empty structures would rent for, and you might find that the bulk of them require 2,000 Euro a month, which is way beyond 'affordable'. 

No comments: