|
|
|
|
 |
|
 |
|
|
 |
|
|
|
|
Demographic change and the role of public programmes
Presentation download (PDF)
International Symposium "Coping with City Shrinkage and Demographic Change - Lessons from around the Globe"
30.-31.03.2006 Dresden, Germany
Peter Flath, Sächsische Aufbaubank, Dresden (Germany)
|
|
Peter Flath |
|
 |
|
Abstract |
|
Demographic crisis, demand crisis, residential market crisis in the Free State of Saxony - what does that mean?
Major demographic shifts severely affect the development of cities, especially in Eastern Germany. In Saxony, the dramatic population loss of 0.5 million inhabitants between 1990 and 2005 corresponds to the complete depopulation of Leipzig, the second largest city in Eastern Germany. Demographic trends will lead to a loss of a further 0.6 million Saxon inhabitants until 2020. These demographic changes have precipitated a collapse of housing demand, as excess housing supply has surpassed 400,000 units in 2000, while the vacancy rate amounted to nearly 18 % of total housing stock. The severe disequilibrium on the housing market persists, as demographic developments will weaken demand further. Private owners instead of the government are bearing the brunt of the negative effects of the severe demographic changes. For private owners, public utilities, urban planners and treasurers, the term "development" has lost its positive connotations and has taken on the meaning of "coping with a contracting housing market".
The problem of excess supply will neither be solved by restructuring individual companies, as any reorganisation and recapitalisation in contracting markets would inevitably put competitors at a disadvantage, nor by easing the requirements for declaring bankruptcy, as the vacancy rate would not change. Urgent government intervention is required to prevent a negative scenario of deteriorating infrastructure, a worsening business environment, disinvestment, growing social segregation and "flight from blight" and urban decay from turning into reality. To achieve a long-term stabilization of the housing market, the government grants affected landlords and public utilities financial aid for dismantling excess housing stock and deconstructing obsolete infrastructure as well as subsidies for the repayment of principal and interest. Special tax exemptions in the case of mergers shall facilitate the formation of economically viable actors on the housing market and investments grants serve as incentives for revitalising neighborhoods representing the character and history of a city. These government policies reflect responsibility for social cohesion and prevention of social hotspots in disadvantaged neighborhoods and try to regain the stability of the real estate market.
The public programmes are co-financed by the federal and the state government. |
© 2001 - 2010 Schader-Stiftung. Alle Rechte vorbehalten.
Letzte Änderung: 03.05.2006 |
|
|
|
 |
|
|
