Construction policy: Expensive rents eat up higher wages: Rich consultants see massive growth brake in expensive apartments
An expert report by the advisory board at the Ministry of Economics shows that a lack of housing prevents many job changes and thus slows down growth. The experts want to change this - with a controversial idea.
Germany's housing shortage and high rents are hindering the country's economic growth and productivity, according to a report by the scientific advisory board at the Federal Ministry of Economics. The board, consisting of 37 economists and lawyers, found that high housing costs are deterring workers from moving to growth regions, resulting in significant economic losses.
In 2023, workers would have to pay almost 1% more for housing costs if they took a job that paid 1% more, compared to 0.3-0.4% in 2000. The report recommends making it easier and more economically attractive for municipalities to allocate land for construction.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
