Sunday, February 21, 2021

Is There Really a German Housing Shortage?

 No.

What you have are highly urbanized 'zones' (cities), like Hamburg, Munich, Dusseldorf, Brelin, Dresden, Koln, Frankfurt, Wiesbaden Bremen, etc....which have all advanced in terms of population over the past forty years.  

So you go 50 km north of Frankfurt, or 50 km west of Dresden, or 50 km NE of Munich....finding yourself in rural areas with homes or 'cottages' selling for 80k Euro and no consumers interested in buying or renovating them.

I sat the other night looking at the entire state of Bavaria....off a 'homes for sale' database.  Nearly 4,800 homes listed. Probably half needed a minimum of 50k Euro of renovation, but some were ready to move into.  The chief problem?  You are in the middle of nowhere for a high number of these, with no jobs in those regions.  

I found six railway stations (built before 1900).  You could take any of these....throw some money in, and have three or four apartments ready to rent out.  But you'd be in some valley with no urbanization existing. 

If you went across all of Germany....all sixteen states, and looked at homes and condos?  I would imagine you'd find more than 250k available. 

So looking at this urban problem created....is there any solution possible?  No.  The magnet cities will continue at the same pace, with speculation folks holding onto farm-land until it's ready to build up new housing.  

No comments: