“Housing is the social question of the next decade”

Frankfurt Sparkasse President Helmut Schleweis warns of a division in society in view of high inflation and increased interest rates. “People with low incomes suffer particularly from high inflation because the price increases for food and energy hit them particularly hard,” said the President of the German Savings Banks and Giro Association (DSGV) to the Handelsblatt.

“In addition, the best protection against inflation – home ownership – has become unaffordable for large parts of the population.” More generous support programs are needed for low-income families. “The issue of housing is the crucial social issue of the next decade.”

At the savings banks, which finance more than one in three apartments in Germany, construction financing fell by more than 50 percent in the first half of the year compared to the previous year. “But there are increasing signals that the bottom has been reached,” said Schleweis.