Acceptance of publicly assisted affordable rental housing in German society [Advanced research in marketing]

Steinhoff, Brigitte (2024): Acceptance of publicly assisted affordable rental housing in German society [Advanced research in marketing].

Abstract

The article outlines the critical situation of affordable housing in Germany, highlighting the government's goal to create 400,000 new flats annually to address dwelling shortages. Despite this target, the actual construction completions in 2022 were only 295,300, with projections indicating a decline to 175,000 by 2025. This shortfall is attributed to rising construction costs, land prices, and interest rates, making it financially unviable for investors to offer affordable rents. The lack of affordable housing is primarily a distribution issue, with high demand in cities and conurbations leading to a cost spiral and financial burdens for low- and middle-income households. To combat this, federal and state governments have introduced subsidy programmes aimed at increasing affordable housing. However, investments in publicly subsidised housing are not seen as attractive due to economic viability concerns and psychological barriers, including prejudices and misinformation among potential investors. Moreover, there are community concerns regarding the development of affordable housing, often referred to as the "not-in-my-backyard" (NIMBY) syndrome. These concerns revolve around the fear of negative impacts on communities, such as the loss of green spaces, increased traffic, and potential social issues like crime and poverty. Despite these challenges, the article emphasizes the importance of affordable housing as a corrective measure in the housing market and the need for public awareness and debate on this issue.

• Item Type: MPRA Paper
• Language: English
• Keywords: Affordable housing, framing the issue of affordable housing, not-in-my- backyard, social acceptability, policy programmes in Germany
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M1 - Business Administration > M14 - Corporate Culture ; Diversity ; Social Responsibility; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M3 - Marketing and Advertising > M38 - Government Policy and Regulation; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R21 - Housing Demand

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