Housing Costs Increase More Than Consumer Spending
Rents and associated costs have risen significantly since 1992
Higher prices for energy are one reason for the increase in private expenditure dedicated to housing costs. However, some associated costs have also risen. Furthermore, the net rents including associated expenses have risen by almost 57 percent in the past 20 years, according to LBS. With 24.4 percent of consumer spending bound to housing costs, Germany surpasses the EU average by 23.6 percent. Only Scandinavia, France and some eastern European countries reach higher percentages.
Home owners in a better position due to lower housing costs
According to LBS, home owners are in a better position than tenants: they are not affected by rent increases and can react to rising energy costs by modernizing their facilities. Home owners who are mortgage free have especially low costs, as they are merely confronted with associated expenses, a fact that leads to significantly lower housing costs. Home owners of 60 years and older pay a maximum of twelve percent of their expenditure for housing (not including associated costs), while tenants of the same age group have to invest 30 percent of their expenditure in accommodation. As a result, home owners have a clear advantage in the long run, when it comes to housing costs.