German city faces imminent shortage of available spaces for seamstresses to work
In the heart of North Rhine-Westphalia, the city of Gelsenkirchen is grappling with a severe housing crisis. With an average living space per unit of 92.4 square meters, it falls short compared to other cities in the region, such as Cologne and Duisburg, which both offer 77.3 square meters per unit. Even more spacious is Bavaria, with an average of 100 square meters per unit.
This housing shortage, combined with rising prices and a significant slowdown in new construction projects, has placed Gelsenkirchen at the epicentre of a crisis. The city, known for its football club FC Schalke 04 and home to approximately 262,000 inhabitants, is finding it increasingly difficult for its citizens to find suitable housing for themselves and their families.
The current situation has led to distress among residents, as housing prices and affordability become increasingly challenging. Gelsenkirchen currently boasts some of the lowest property prices in Germany, with houses priced at €1,605 per square metre in Q1 2025. However, prices have been gradually increasing, with houses rising 3.7% year-on-year and apartments 2.7% in Q2 2025. Despite this, buying property remains cheaper than renting in many German regions, including Gelsenkirchen.
The construction sector's current slowdown is another major challenge. Since late 2022, new construction projects have dropped by 85% nationwide, with building area also down by 5% in early 2025. Smaller towns near Gelsenkirchen have seen declines as much as 10% in construction activity. This stark reduction in new housing exacerbates the supply shortage there.
However, there are plans and solutions in place to address this issue. To alleviate the shortages, efforts focus on broadening the types of housing and services available, streamlining mortgage processes to boost new home production, and leveraging public and private investments in new buildings. Despite the short-term construction slowdowns, long-term forecasts expect annual housing price increases of 3–5%, suggesting that increasing supply remains a key target.
Although mortgage lending declined sharply in 2023, there has been some recovery in 2024, and increased house sales activity indicates ongoing strong housing demand. However, mortgage credit is still constrained due to the necessity of maintaining adequate returns for lenders.
In summary, the approach to solve the housing crisis in Gelsenkirchen involves stimulating new housing construction, adapting mortgage and financing frameworks to support buyers, and maintaining affordability amid rising demand. It is hoped that these measures will help to alleviate the housing crisis and provide residents of Gelsenkirchen with the living space they need to thrive.
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