Amid ongoing housing shortages in several German cities, the CDU Economic Council, a CDU-affiliated lobbying group, is proposing a “misallocation levy” for subsidized social housing. This news, reported by Redaktionsnetzwerk Deutschland, pertains to a position paper intended for the government’s Rent Law Commission.
The General Secretary of the Economic Council, Wolfgang Steiger, exemplified the problem by noting that current regulations allow an individual-who might initially have been approved for subsidized housing as a medical student-to continue living in the same subsidized flat even when working as a chief physician, thereby costing the public.
Steiger stated that he believes the current system is unjust and must be reformed, pointing out that, “Once occupied, the favorable conditions for subsidized housing are currently valid for life, regardless of how the individual’s income develops”.
Furthermore, the Economic Council advocates for pairing greater social support with increased flexibility in rental pricing. Steiger clarified that this requires “the softening, and ideally the complete abolition, of the rent brake and the removal of the capping limit” on rent increases. He also insisted that the modernization surcharge must be placed under review.