BERLIN: WILL IT REMAIN A CITY FOR ALL?
Aspiring artist, Andrea Rausa packed his bags and left Rome, the city he had lived in for more than twenty years, in search of creative inspiration as part of Berlin’s artist community.
He found that in one of Berlin’s hotspot areas, Kreuzberg: a mix between run-down, edgy and hipster with street art, a diverse cultural scene and trendy cafes and bars at every corner.
For the past year, Rausa and his nine-year-old daughter have lived in a share house but now it’s time to find an apartment for just the two of them.
“I can't afford a single apartment here unless I find somebody that is going to give me the same contract from 10 years ago,” the 47-year-old said.
Rausa thinks he will have to farewell his beloved neighbourhood and “reorganise my [his] life”.
“What I will lose for sure is that sense of community that I have here," he said.
He still wants to live within the very popular ring; the train line that forms a ring around the inner-city.
“That’s the problem, everybody wants to stay in the same places within the ring- so there’s a huge demand over a very small piece of Berlin and if you’re an artist, it’s even smaller,” Rausa said.
Rausa is one of many who will have to leave his neighbourhood to find an affordable place as rising rent and apartment shortages push people to the outskirts of Berlin.
Photo supplied by Andrea Rausa
Photo supplied by Andrea Rausa
A HOUSING CRISIS?
Berlin’s charm and reputation as an affordable city has been tarnished by soaring rental prices and apartment shortages.
In the last five years, the cost of renting an apartment has increased by 42%, placing Berlin in first place for the fastest rising rent out of 80 major German cities.
“The market power of profit-oriented investors in the city has become too great,” said Wibke Werner, the deputy managing director of the Berlin’s Tenant’s Association (Berliner Mietenverein).
Berlin’s biggest private property company, Deutsche Wohnen, owns more than 110 000 apartments in the city.
The shareholder’s valuation of Deutsche Wohnen increased by 22.6% for the 2020 calendar year and significantly outperformed the DAX (German stock market), consisting of the top 40 German companies, which only achieved an increase of 4% over the same period.
“The housing supply has to be understood more as a service of general interest, which has to be handled carefully and which is not there to serve any shareholders,” said Werner.
Berliners are frustrated by private property companies that own 37% of the rental market.
In a bid to tackle the city’s housing crisis, renters have united to support a radical initiative.
“Many Berliners have difficulties to find an apartment and to pay for their apartment which is also related to the fact that the income situation of Berliners is not so rosy,” Werner said.
A study by the Humboldt University of Berlin in association with the Hans Böckler Foundation found that of the 8.4 million households who rent in Germany’s 77 major cities, almost half spend more than 30% of their net income on rent.
A quarter of the households in these cities spend more than 40% of their income to pay for rent and utility costs.
“You just have to keep an eye on these people, all in all it’s a very difficult situation,” Werner said.
Photo supplied by Coco Daro
Photo supplied by Coco Daro
Coco Daro, a 20-year-old Australian who recently moved to Berlin to follow her passion for dance knows the struggle of finding an affordable place.
“At one point, I kind of ditched my original budget, because it wasn't really possible to find something that cheap"
Her initial budget was 400 euros/month but she had to settle for a room in a share house at 550 euros/month instead.
As a full-time dance student, it will be tricky for Coco to juggle her studies and find enough time for a mini job. Even then, she can only earn up to 450 euros a month (otherwise she has to start paying social insurances).
Berlin attracts around 40 000 new residents each year and in a city, where 84% of the population are renters, there is a serious supply and demand issue.
According to the Berlin real estate firm Guthmann, the city is short of 200 000 apartments.
“The supply must be expanded. The influx to Berlin will certainly continue,” said Werner.
“Currently the mixture between rich, young and old, not so rich and artists is still there but under great pressure,” she said.
Anyone who has either moved to Berlin or has tried to find a new apartment knows that when someone says, “Good luck”, they really mean it because you’ll need it.
This has been the case for Lucas de Boer who moved with his young family across the globe to start a new life in Berlin.
In the space of three years, the family of four moved eight times before finally securing a long-term rental apartment just after the first lockdown last year.
“Apartment searching needs to be close to a full-time job”
The 35-year-old Australian who works for a tech company in Berlin said he could “charitably” describe the apartment searching experience as “horrific”.
“It was one of initial optimism, followed by sort of a long, slow decline and a sense of hopelessness,” de Boer said.
The length of their stay at each apartment was limited to a matter of months before they had to move along to the next one; their longest stay was just under a year.
“The constant pressure in the back of your mind was, don't settle in, don't get used to it, we're going to have to move soon and that impacts every other area of your life,” he said.
Another challenge was the physical move itself which cost time, money and energy.
Photo supplied by Lucas de Boer
Photo supplied by Lucas de Boer
Andrea Wesson, 59, is a true Berliner, growing up in the city when it was divided by the wall and there when it fell.
On her Saturday afternoon walk, it’s not unusual for her to see big lines in front of apartment blocks with up to 15 families waiting for an apartment inspection.
When her husband passed away in March last year, she no longer felt comfortable and was unsure whether she could finance her 115-squared meter, four-bedroom apartment with a garden and balcony.
Photo supplied by Andrea Wesson
Photo supplied by Andrea Wesson
“I had this idea, maybe I should swap with a family. I heard that a lot of families are looking for bigger flats"
“When you walk through the streets, often there's little papers on a tree or lamppost where it says, a young family with two kids is looking for an affordable place," she said.
With a contract from 2007 and a four-bedroom apartment located within the ring for just 1065 euros, it took only ten minutes before Andrea was swamped with requests after uploading photos of her apartment to Tauschwohnung (an apartment exchange platform).
Wesson visited 12 families who were very eager to swap with her considering the price.
The average monthly rent today for a three-bedroom apartment within the ring is 1,945.81 euros
“What I found was, either these flats were in a very, very bad condition like the bathroom hadn't been renovated for 20 years or the rent was higher for a two and a half room flat than my four-room flat,” she said.
“Every time I had to say, sorry, but it's not what I wanted, or it's expensive, I always saw this big disappointment in their eyes,” Wesson recalled.
She decided to stay in her apartment because she couldn’t find anything within a reasonable price range or in good condition.
“The idea cannot be that I pay more and get less,” Wesson said.
Photo supplied by Andrea Wesson
Photo supplied by Andrea Wesson
Photo supplied by Andrea Wesson
Photo supplied by Andrea Wesson
Photo supplied by Andrea Wesson
Photo supplied by Andrea Wesson
Photo supplied by Andrea Wesson
Photo supplied by Andrea Wesson
Photo supplied by Andrea Wesson
Photo supplied by Andrea Wesson
Photo supplied by Andrea Wesson
Photo supplied by Andrea Wesson
WHAT’S ALL THE FUSS with BERLIN?
Ranked as one of the Top 20 Most Liveable Cities
Berlin has been included in Monocle’s Quality of Life Survey 2021 - coming in at #14, just above Amsterdam at #15 and behind Sydney at #10.
“Berlin is currently still a very colourful city," Werner said.
“People like to come to Berlin to live here because of the living conditions which are very favourable compared to other metropolises, in other cities and other countries,” she said.
De Boer and his wife thought they would return to Berlin after feeling so comfortable in the city during their travels over a decade ago.
“We started to think, could we live there, could we make that change, and then the more we talked about it, the more realistic it seemed and eventually, we just decided to bite the bullet and make the move," he said.
“The attraction of Berlin was a sense of freedom, you know, more accommodating and sort of open minded place to live in, place to raise children,” de Boer added.
23-year-old Australian, Adonia Barrie realised during her high-school exchange to Germany she wanted to live in Berlin one day, after visiting the city most weekends.
She has now lived in the city for three years with her boyfriend.
“I just had a better feeling, it felt like it suited me better, just the people and the weather," she said.
Looking into the future, I just pictured myself having a better quality of life here"
As part of Barrie's studies to become an early childhood teacher, she works in a kindergarten where she regularly sees the quality of life that young families have in Berlin.
“If we think about having kids at some point, like the system that is in place for young families with kids is also just amazing,” she said.
"We picture ourselves staying here if we can keep finding places to live," Barrie added.
The solution
There’s many approaches to fixing Berlin’s housing crisis, however there's no one simple solution.
One possible solution was the ‘Mietendeckel’, Berlin’s rent cap, which aimed to stop increasing prices by limiting how much landlords could charge.
In April, it was declared unconstitutional.
As a result, most tenants had to repay the money they saved from the rent cap.
Michael Melchner, owner of an electronic music label, knows the joy that came with the rent cap and disappointment when it left.
“I suddenly had to pay 170 euros less a month, so I was like, wow, that's amazing, that’s the price of my studio,” he said.
Melchner said the removal of the rent cap “hit hard”.
Photo supplied by Michael Melchner
Photo supplied by Michael Melchner
In 2019, the number of apartments completed in Berlin reached a record-high of 19 000
“The problem is that many apartments in new construction are still expensive so building alone cannot bring relief,” said Werner.
Instead, she said there needs to be “a mix of expanding and regulating and looking at how we can better make use of living space in the future, use it more effectively”.
“There has to be cooperation with investors orientated toward the common good, who are also prepared to offer some of their apartments in an affordable segment," Werner said.
At the same time, she said “landlords also have to earn money- everything has to be in balance."
Deutsche Wohnen said they recognise their responsibility within the housing market as Berlin’s largest private housing company and agreed to a “Future and Social Housing Pact” with the state.
“We do this by stepping up our commitment to new construction, limiting rent increases in the coming years, promoting housing for young families, and supporting the prevention of homelessness,” said Laura Kruß, spokesperson for Deutsche Wohnen.
While the Berlin Tenant’s Association mostly supports Expropriate Deutsche Wohnen, Werner said there are pros and cons to the initiative.
“The idea that more housing must once again be in public hands, in order to restore a balance in the political negotiating power is the right approach,” she said.
At the same time, Werner is “divided” about whether expropriating big landlords’ housing units is the right approach.
“Companies have to be compensated at great expense. It all costs a lot of money."
The initiative has made it clear that the Berlin Senate must deal with the issue.
“Anything else would be a snub to the people of Berlin,” Werner said.