For Sustainable Relief of the Housing Market in Darmstadt

For Sustainable Relief of the Housing Market in Darmstadt

Vision of Volt Darmstadt in Relation to Statements by Mayor Hanno Benz on Growth Restraints

Darmstadt, 23.10.2023 – Darmstadt is an attractive, vibrant, and cosmopolitan city in the heart of Europe, and Volt aims to keep it that way. Volt wants to continue to offer existing residents of Darmstadt and newcomers promising prospects for housing and living space in Darmstadt. Because all these people represent an opportunity for the advancement and enrichment of Darmstadt's science, economy, and society.

On October 16, during a public event at the Darmstadt Press Club in the Comedy Hall, Mayor Hanno Benz criticized the housing policies of recent years and called for a critical examination of the necessity of further population growth. He also expressed critical views on densification and proposed slowing down growth

"Especially in the last 10 years, during the years of migration, Darmstadt has seen significant development. We need controlled growth because we require personnel from healthcare to informatics. If a company can no longer develop here, it will leave Darmstadt. Furthermore, a slowdown in housing construction leads to ever higher rental prices, as those with financial means will continue to want to live here, displacing those with fewer financial resources," said Maik Richter, Co-Chairman of Volt Darmstadt.

Frederik Jobst, Deputy Faction Leader of Volt Darmstadt, adds: "Mr. Benz is confusing cause and effect here. We don't grow because we build homes; we build homes because we are growing. People come to Darmstadt primarily because the city offers a high quality of life, education, and job opportunities. These are the qualities that distinguish the city for us 'HeinerInnen,' and we want to preserve them, not reduce them to slow down growth. I don't move to Darmstadt because I'm looking for an affordable apartment; I move here because I work or I'm getting my education here."

Additionally, Ana Lena Herrling, Faction Leader and Social Policy Spokesperson of the Volt Faction, notes: "People who move to Darmstadt need to encounter a city development plan that includes them. Darmstadt is the fourth youngest city in Germany at 41 years old, mainly because we provide young people who have received education here with a perspective through work and housing. They too are part of the future of our city."

Various measures are important for sustainable relief and fairness in the housing market. These measures are outlined in the housing policy concept of our Darmstadt coalition with the Greens and CDU. The concept focuses on further climate-adapted and future-oriented development of neighborhoods like Lincoln and, in the future, the Ludwigshöhviertel. It aims to reserve 25% of the new housing for low-income and 20% for moderate-income individuals. It is also important to cooperate with surrounding municipalities and improve mobility to and from Darmstadt

owever, the city's most significant lever is its municipal housing company, the bauverein AG. Here, distributions should be waived to finance new construction and renovations. In the long run, an increasing municipal land reserve policy, following the example of Ulm, will also lead to market improvements.*  

“A standstill in the housing market is a setback for the entire city. Those who want to preserve and develop Darmstadt need the courage to continue steering sustainable and forward-thinking growth," says Anna Schilling, Co-Chairman of Volt Darmstadt.

*(Link) The city of Ulm only grants development rights for a property if it owns it. It acquires properties on a large scale before they are developed. As the owner, it can independently decide what should happen to them, who can buy them, what concept the development must follow, and whether social and environmental goals are top priorities. The price is determined by the city council, usually well below market prices. This generally lowers land price benchmarks. Additionally, the city has a right of repurchase. Private property owners cannot simply sell undeveloped properties that were once owned by the city to third parties; they must first offer them to the municipality at the original price. This is an effective restraint against speculation. When Ulm sells a property, the profit automatically goes into the municipal land fund. The money can only be spent on purchasing new properties or maintaining municipal holdings. As a result, one-third of the entire city area belongs to the municipality. It can respond flexibly to shortcomings without depending on the goodwill of investors.