Hubertz: People on higher incomes in social housing have to pay extra

Anyone who gets social housing while still a student can often live there on a higher income. Construction Minister Hubertz said he wants to take action on this.

According to Federal Construction Minister Verena Hubertz, people with higher incomes will have to pay a special tax on social housing. “In Hesse, for example, there is an inappropriate occupancy tax, which is an additional fee that must be paid if income exceeds the threshold of needs. I think it is a very good idea,” the SPD politician told the “Funke Mediengruppe” newspaper.

“Why should architects who moved there as students live in housing built with tax dollars? We should encourage states to take this route.”

Tenants’ Associations: The amount of social housing has almost halved

Anyone wishing to move into social housing in Germany must show proof of income – but usually only when moving in. In Hesse, tenants have had to pay an incorrect occupancy tax since 2016 if their income exceeds the legal limit during the rental period, for example due to getting a new job. Income must flow to social housing.

According to the German Tenants Association, the number of social housing units in Germany has almost halved since 2006. There are currently only around 1.1 million social housing units across the country, but more than eleven million renter households are entitled to a housing rights certificate – and thus entitled to a social housing apartment.

Hubertz says that change in social housing is now imminent. “The federal and state governments will invest around 50 billion euros in social housing by 2029, as the federal government’s funding of 23.5 billion euros is typically more than double the funding allocated by the states.” Nowadays it is important to look for efficient solutions, for example through simple or serial construction.