Berlin — A City With A Complex Problem
Spending four days in Berlin allowed time for both exploration and learning. After a brief tour of the Rotes Rathaus, we were given a presentation by urban planner for the state, André Moschke. He first gave us an introduction about his work as an urban planner before educating our class on the intricacies of the housing crisis and the four federal subsidy models. André remarked that while Berlin was not the major financial or industrial city within Germany, it was one of the most expensive. A growing city of four million and counting with defined city land limits presents a challenge to André and his colleagues. They must redevelop land to build affordable housing for as many citizens as possible to meet a continued growing demand. While multiple challenges were spoken about during the 90-minute presentation, one stood out. The recurring issue of extremely inefficient processing of paperwork and approvals by the German government. This has been a theme and major criticism from almost every guest speaker we have met with throughout the duration of our trip. André remarked about how, in his experience, it was not uncommon to see construction plans take more than five years to draw up and another 2–3 years for formal approval. This processing pace is proving to be detrimental to their efforts of trying to pivot quickly to respond to a growing population that is currently facing a housing crisis.
The four subsidy models currently in place for German housing include one for the unemployed, one for low-income households, and two for middle/upper middle class households. Each of these models require certain conditions to be met in order to qualify, mostly based on household income. Rent controls are also in place where rent in certain areas may not rise by over 15% yoy, and in some cases, rent cannot rise at all until a determined date. While certain methods are proving to be more effective, Andre made it clear that none are a catchall solution. This experience was eye-opening. As someone who is very interested in real-estate and the housing market, Andre’s unique perspective felt fresh and hopeful. While rising costs of living are not unique to Germany, the solutions in place here are innovative and could be adopted elsewhere. In major cities like New York City or Boston, finding affordable housing is getting more and more difficult and solutions from policy makers are desperately needed. From this experience, my major takeaway was that policy makers can drive change when they listen to the population while working alongside urban planners, architects, developers to understand the intricacies of a highly complex problem. While Berlin has a long way to go in terms of developing more affordable homes, I remain hopeful in their ability to be successful in their endeavor in the long run.
The conversation didn’t just stop at the complexities of the housing crisis; it also touched upon the broader implications of urban planning in a historical city like Berlin. The city’s unique past has left it with a distinctive urban fabric, comprising a mix of old and new buildings, vast parks, and memorials that all tell the story of Berlin’s tumultuous history. This adds another layer of complexity to Andre’s work, as any new development must be sensitive to the historical and cultural significance of its surroundings. André emphasized the importance of preserving Berlin’s character while addressing its modern needs, a delicate balance that requires innovative thinking and collaborative efforts. He shared examples of projects that successfully integrated affordable housing into historic neighborhoods, showcasing the potential for creative solutions that respect the past while embracing the future. This discussion highlighted the multifaceted nature of urban planning in Berlin, where the challenge is not only to solve the housing crisis but also to contribute positively to the city’s ongoing narrative.
After our initial meeting with André, he attended our networking event at the PanAm lounge where he kindly offered up his time to speak with me where I was able to ask further questions. André provided me with specific income figures for each of the four models and expanded on the application process. André was highly aware of the problems that the state of Berlin is facing, and he was honest about his views on which policy models were working and which weren’t. He remains optimistic but is hoping that the digital transformation in Germany allows for a much more efficient handling of the permit approval process. This experience was eye-opening as it allowed me to gain insight into a highly relevant topic that many young people including myself are facing with the rising cost of living. It was refreshing to see how André approaches the problems he is facing, and I am very grateful I had the opportunity to spend a few hours with him in Berlin during our trip.
