According to a study, older people have to pay ever larger parts of their income for rents and utilities.
IMore and more elderly people suffer from high housing costs. This is what Spiegel reports in its current issue, based on a representative study by the German Institute for Economic Research (DIW), which will be published next week. The DIW scientists examined the housing costs of households in which at least one resident lives who is 65 years of age or older.
According to the report, the proportion of senior households requiring 30 percent or more of their net income for rent plus utilities rose from 38 to 63 percent between 1996 and 2016. The proportion of households surveyed in which this rate was 40 percent or more in 2016 is 38 percent.
“Anyone who spends so much money on their apartment often has to limit themselves otherwise and runs the risk of becoming over-indebted if their rent is increased further,” says Markus Grabka, one of the authors of the study for the magazine. This is especially true for seniors with low incomes. Seniors with higher incomes, on the other hand, often lived in their own property that had been paid for.
Those who live in property had to spend an average of around 15 percent of their income on it in 2016. There is also good news: the number of senior citizens living in their own four walls has increased, according to the study. In 1996, around 56 percent of households with people aged 65 and over lived in rent; in 2016 it was only 45 percent.
The real estate boom in the metropolitan areas affects people with low incomes relatively hard. Because they often live in buildings that are being refurbished, so that rents subsequently rise.