How to define threshold households in different big German and European cities?

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Presented at the FIG Working Week 2017, May 29 - June 2, 2017 in Helsinki, Finland How to define threshold households in different big German and European cities? FIG Working Week 2017 Helsinki Finland 31.05.2017 Isabelle Klein, M.Sc. Prof. Dr.-Ing. Alexandra Weitkamp Chair of Land Management Technische Universität Dresden

GERMAN AND EUROPEAN MAJOR CITIES ARE GROWING AGAIN Attractivness of metropolitan areas for young adults pensioners migrants education, jobs medical care, short distances ethnic colonies Population growth leads to housing shortage increasing prices in rents and property problems for lower incomes to provide adequate housing Growing significantly Growing Stable Shrinking Shrinking significantly 2

CHARACTERISTICA OF THRESHOLD HOUSEHOLDS 3

CHARACTERISTICA OF THRESHOLD HOUSEHOLDS 4

CHARACTERISTICA OF THRESHOLD HOUSEHOLDS 5

CHARACTERISTICA OF THRESHOLD HOUSEHOLDS 6 Incomes above the limit to public financial support

INCOMES AND COSTS OF LIVING IN GERMANY (2015) 10,5 Household/month in % Gross income: 3,000 5,000 3,7 5,7 13,9 0,7 4,4 3,7 7,9 0,3 3,2 3,2 9,9 17,5 Household/month in % Gross income 1,300 2,600 5 0,4 3,7 15,8 4,1 2,6 8,5 3,1 3,4 2,2 10,2 13,1 3,7 2,9 4,2 5,3 35,9 46,5 Food Clothes Living, Energy 4,5 40,4 Interior, Appliances Health Transportation 7 Communication Leisure Education Accomodations, Restaurants Others Based on: Destatis 2017

sqm HOMEOWNERSHIP RATE AND AVAILABLE LIVING SPACE Available living space + net incomes (2014) in Germany 100 90 88.7 sqm 80 70 63.7 sqm 60 50 48.3 sqm 40 30 20 10 0 Low income Middle income High income 8 < 25,000 25,000-50,000 > 50,000 (Net income/year) BMAS 2017

Romania Croatia Lithuania Slovakia Hungary Poland Norway Bulgaria Estonia Latvia Spain Czech Republic Slovenia Greece Portugal Italy Finland Belgium Sweden Ireland Netherlands France UK Danmark Austria Germany Switzerland 43,4 51,9 55,7 90,5 89,4 89,3 86,3 83,7 82,8 82,3 81,5 80,2 78,2 78 76,2 75,1 74,8 72,9 72,7 71,4 70,6 70 67,8 64,1 63,5 62,7 96,4 HOMEOWNERSHIP RATE AND AVAILABLE LIVING SPACE 100 90 80 70 Low ownership rate in Austria, Germany and 60 Switzerland 50 40 30 20 10 0 In cities even lower high importance of rental housing market Munich: 21 % Cologne: 24 % Vienna: 18 % Basel: 16 % 9 Based on: Zensus 2011 Stadt Wien 2010 Bundesamt für Statistik Schweiz 2014

MUNICH, COLOGNE, BASEL AND VIENNA AN INVESTIGATION ON HIGH DENSED CITIES IN DACH-COUNTRIES Purchase price of residential property Rental price (net cold rent) for apartment Owner-occupied flat 70 sqm apartment Rental price 70 sqm apartment City/ Country (in /sqm) (in ) (in /sqm) per month (in ) Munich 6,300 441,000 14.21 995 Cologne 2,875 201,250 10.55 738 Germany 1,195 83,650 6.37 446 Basel 7,447 521,290 17.94 1,256 Vienna 5,198 363,860 10.60 743 Difficulties for low-incomes to provide adequate housing 10 How much income households need to provide adequate rental housing? References: Munich 2015, Cologne 2015, Germany 2014/2010, Basel 2015, Vienna 2017

HOW MUCH INCOME HOUSEHOLDS NEED TO PROVIDE ADEQUATE RENTAL HOUSING? Data? (Net) Incomes Rental prices, incidential costs Household size Living space/household Target Group? 11 Single Person Single Parent Two Adults Two Adults with Children enso-blog.de

HOW MUCH INCOME HOUSEHOLDS NEED TO PROVIDE ADEQUATE RENTAL HOUSING? Net income in /year; 30 % for living Munich Cologne Basel Vienna Single person without dependent children 40,000 30,000 40,000 30,000 Single parent with dependent children 45,000 35,000 55,000 35,000 Two adults 1 without dependent children 50,000 40,000 60,000 40,000 Two adults² with dependent children 60,000 45,000 70,000 45,000 Average net incomes in Germany in 2016 1.840 /month 22.080 /year 12 [1] Due to missing data, no distinction is possible in couples with one or two salaries. [2] Due to missing data, no distinction is possible in couples with one or two salaries.

CONCLUSION No existing definition of threshold households Interpretation of threshold households depends on the city/ country Mix of land policy instruments and financial support-programms is needed Statistics on incomes are nessecary to get reliable information 13

CONTACT Isabelle Klein, M.Sc. isabelle.klein@tu-dresden.de +49 351/463-33921 Prof. Dr.-Ing. Alexandra Weitkamp alexandra.weitkamp@tu-dresden.de +49 351/463-33600 Chair of Land Management Geodetic Institute Technische Universität Dresden Helmholtzstraße 10 01069 Dresden GERMANY http://tu-dresden.de/gi/lm