Housing is a basic necessity. Our capitalist system can not even provide for that.
Today, Vonovia made an announcement. Vonovia is the biggest real estate holder in the country. Millions of renters live in apartments owned by them.
The announcement goes like this:
“If inflation is permanently at four percent, rents will have to increase accordingly every year in the future,” said Vonovia CEO Rolf Buch to the “Handelsblatt”
Of course, the capitalists who post record profits year after year start whining.
Last month, they handed 1,3 billion Euros to their shareholders.
Also, they already raised rents this year. By an average of 3,1%.
Most of their assets used to belong to the public, by the way. Yes, our politicians created this situation. That initiative was led by the so-called Social Democrats. It is time for them to take the word ‘Social’ from their name.
Vonovia is giving renters a Double-Whammy
Here is the kicker. Adjusted for current inflation, real wages are already receding. By 1,8 %, in fact. What that means is, that people already suffer economic losses. From whatever is left people have to pay an additional 4% to cover their rent.
Also note, that Vonovia announced that this would happen every year.
If you want to live in their apartment for 18 years, you will pay twice as much as now.
Good luck founding a family and raising kids, when your real income keeps declining at the same time.