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Baden-Württemberg Launches Tenant Incentive to Ease Housing Shortage

The state offers up to €7,500 for downsizing moves as municipalities begin implementing the program to free up larger apartments for families.

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Overview

  • The Wohnflächenbonus program, with an initial €1 million budget, provides up to €7,500 per move for tenants downsizing within municipal borders.
  • Eligible moves must reduce living space by at least 15 m², with municipalities facilitating the process through counseling and mediation.
  • Tenant advocates express concerns over rising rents post-move, while city associations praise the program as a step toward addressing housing shortages.
  • The initiative builds on prior municipal experiments, with varying success; cities like Mannheim continue similar programs, while others, like Stuttgart, discontinued theirs.
  • Baden-Württemberg's housing deficit remains critical, with 37,247 units completed in 2023 versus an annual need of 53,100, leaving families struggling to find affordable housing.