welt.de
German Housing Program "Jung kauft Alt" Receives Poor Uptake
Germany's "Jung kauft Alt" program, launched in September 2024 to aid young families in buying and renovating older homes, saw only 592 approvals (€70 million) by July 2025, far below its €350 million budget, while the parallel "Wohneigentum für Familien" program performed far better, highlighting challenges in addressing Germany's housing crisis.
- What are the key reasons for the significantly lower-than-expected number of applications for the German government's "Jung kauft Alt" housing program, and what are the immediate consequences?
- Jung kauft Alt", a German government program launched in September 2024 to address housing shortages by incentivizing young families to purchase and renovate older properties, has received significantly fewer applications than anticipated. By the end of July 2025, only 592 applications were approved nationwide, totaling approximately €70 million in credit commitments against a €350 million budget.
- How does the success of the "Wohneigentum für Familien" program compare to "Jung kauft Alt", and what insights can be gleaned from this contrast regarding the effectiveness of different housing support approaches?
- The low uptake of the "Jung kauft Alt" program contrasts sharply with the more successful "Wohneigentum für Familien" program, which had over 9300 approvals since its 2023 launch. This discrepancy suggests potential issues with the design or accessibility of the "Jung kauft Alt" program, prompting an analysis of application behavior and consultation with financial partners.
- Considering the declining interest in homeownership among younger Germans and the underperformance of "Jung kauft Alt", what adjustments to German housing policy might be necessary to effectively address housing shortages and affordability concerns?
- The underperformance of "Jung kauft Alt" highlights challenges in addressing Germany's housing crisis. The decreasing number of Germans prioritizing homeownership as a savings goal (down 10 percentage points year-on-year to 33 percent), particularly amongst younger demographics, underscores the impact of rising costs and potentially suggests a need for broader policy adjustments beyond targeted subsidies.
Cognitive Concepts
Framing Bias
The article presents a balanced view of the "Jung kauft Alt" program, acknowledging both its low uptake and the government's efforts to understand the reasons behind it. While the low number of applications is highlighted, the article also mentions the government's analysis and the better performance of a similar program. The inclusion of the decreasing desire for homeownership among Germans provides broader context.
Bias by Omission
The article could benefit from including perspectives from potential applicants explaining why they haven't used the "Jung kauft Alt" program. While the government's analysis is mentioned, direct quotes or insights from the target demographic would enrich the analysis. Additionally, information on the specific requirements and application process of the program could offer a more comprehensive picture.
Sustainable Development Goals
The program aims to address housing shortages and reduce vacant properties, contributing to sustainable urban and rural development. While the initial uptake was low, the government is actively seeking to understand and improve the program to better achieve its goals. The success of the "Wohneigentum für Familien" program shows the potential for positive impact on housing affordability and access.