Since the start of the corona pandemic, most rents have risen significantly more than KV wages and salaries. That is now being calculated by representatives of the union-affiliated Momentum Institute.
Wages and salaries in collective agreements have increased by an average of 5.8 percent between January 2020 and today. According to the Momentum Institute, unoccupied rents rose 12.2 percent over the same period and rents in older buildings rose 11.2 percent. The increase in rents is therefore higher than that in wages.
The category rents will be increased again in December. “From December, the tenants of these apartments will also have to deal with an increase, driving rents 17.5 percent higher than in 2020,” said Alexander Huber, an economist at the Momentum Institute.
For benchmark rents (old construction contract after 1 March 1994), the price development over the past three years corresponded to the salary and wage increases laid down in the collective labor agreement.
Further increase in 2023 feared
The trend could deteriorate again in the coming year. Representatives of the Momentum Institute predicted a 15 percent increase in reference rents and even an increase of around 24 and 19 percent in category and free rents. Wages are also expected to rise, but not to the same extent.
The institute, which is close to the unions, recommends that legal rent inhibitors can stop this current development.
Source: Krone
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