Phased Out, Demolished and Privatized: Social Housing in an East German ‘Shrinking City’

Abstract

Purpose

Based on a case study in Halle-Neustadt, this chapter examines the changing configuration of social housing provision in a paradigmatic shrinking city in East Germany.

Findings

Social housing is under pressure in East Germany due to three developments. First, ‘social housing’ in Germany has always been a temporary affair such that the number of social housing units is decreasing rapidly all over Germany; this development is particularly pronounced in East Germany where most cities are struck by deindustrialization and poverty, and lack the resources for new social housing subsidies. Second, privatization has led to a reduction of the municipally and cooperatively owned housing stock and a growing relevance of financial investors. Third, most cities in East Germany have experienced severe population losses; this has stimulated ‘rightsizing’ policies and 350,000 housing units have been demolished since 2001. These three developments produce new concentrations of households living in poverty, accelerated downgrading and a crowding out of the poor to the least attractive parts of the city.

Social implications

The chapter demonstrates how developments in different sectors result in the marginalization of impoverished groups in a low-demand environment. It emphasizes the interplay of planning strategies, housing privatization and changes in welfare provision which have had limited research attention.

Originality/value

This is the first study of the changes of social housing provision in the East German context characterized by deindustrialization, low demand, privatization and financialization.

Citation

Bernt, M. (2017), "Phased Out, Demolished and Privatized: Social Housing in an East German ‘Shrinking City’", Watt, P. and Smets, P. (Ed.) Social Housing and Urban Renewal, Emerald Publishing Limited, Leeds, pp. 253-275. https://doi.org/10.1108/978-1-78714-124-720171007