Overview of the Study
The report âGemeinwohlorientierte Wohnungspolitik â eine Studieâ is a research project commissioned by the Federal Ministry of the Interior, Building and Community (BMI) and executed by the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR). It was published in 2019 and edited by Mathias Metzmacher (BBSR) and Barbara Crome (BMI). The study investigates the role of foundations and other commonâgoodâoriented actors in Germanyâs housing market, analysing their business models, target groups, financing mechanisms and cooperation with public bodies.
Research Scope and Methodology
The BBSR screened 212 German foundations with a housingârelated purpose, gathered detailed data on 150 of them, and conducted an online survey with 51 foundations (â30 % response rate). Complementary expert interviews (five foundation experts) and a workshop provided qualitative insights. The study also examined 31 further actors (consulting organisations, umbrella networks, house projects) and compared German findings with examples from Austria, Switzerland, Italy, the United Kingdom and Belgium.
Key Quantitative Findings â Foundations
Only 1 % of all German foundations (212) address housing directly. Among those, 45 % focus on careâoriented housing for seniors or people with disabilities, 32 % on affordable housing for economically disadvantaged groups, and smaller shares serve students, mixedâgeneration projects or niche target groups. The median annual expenditure of German foundations is âŹ26 600; 76 % hold real estate in their assets, but most (â80 %) own up to 200 units. The largest foundation, the JosephâStiftung, manages about 5 000 units in northern Bavaria.
Financing and Business Models
Foundations mainly finance operations from rental income and endowment returns. About 38 % use earnings for upkeep and modernization, 12 % for new construction, and 24 % for land acquisition and leaseâback arrangements. Missionâinvesting is emerging: younger foundations such as the Edith Maryon and trias foundations acquire or develop properties to keep them out of speculative markets. Funding sources include grants, donations, debt (e.g., KfW loans), and, increasingly, lowâinterest, interestâfree loans from private individuals.
Cooperation with Public and Social Actors
Over twoâthirds of surveyed foundations have collaborated with municipalities, social service providers or churches in the past five years. Typical cooperation includes joint development of housing concepts, use of public land under longâterm lease, and participation in municipal housingâallocation processes. Only a minority (â15 %) are formally integrated into local housing networks or policy instruments, indicating room for deeper institutional linkage.
Other CommonâGood Housing Actors
The study identifies 31 additional actors: umbrella organisations (e.g., MietshĂ€user Syndikat), consulting networks (FORUM, Global Ecovillage Network), and houseâproject collectives. MietshĂ€user Syndikat operates a âsolidarityâ model where a central GmbH holds a share in every projectâGmbH, preventing resale without consent. Approximately 490 units are owned by the network, mainly in repurposed historic buildings. Community Land Trusts (CLTs) in the UK and Switzerland exemplify landâbased models that secure longâterm affordability.
European Comparative Insights
Case studies from Italy (Cenni di Cambiamento in Milan), Switzerland (Hunziker Areal in ZĂŒrich) and the UK (St Clementâs CLT in London) illustrate diverse governance structures but share common goals: removal of land from speculation, mixedâuse development, and strong tenant participation. The Austrian and Belgian examples show similar emphasis on cooperative ownership and publicâprivate partnerships.
Recommendations for Policy Makers
The authors advise:
- Strengthen legal frameworks for nonâprofit housing, including clearer tax treatment for housingârelated foundations.
- Expand municipal tools such as landâgrant schemes, longâterm leaseârights and preferential procurement to support commonâgood actors.
- Facilitate financing through missionâoriented funds, lowâinterest credit lines and support for interestâfree private loans.
- Promote knowledge transfer via networks, conferences and bestâpractice publications.
- Encourage cooperation between foundations, the MietshÀuser Syndikat, CLTs and local authorities to scale impact.
Outlook and Impact Potential
Although foundations currently represent a modest share of the German housing stock, their longâterm asset stewardship, targeted social missions and growing willingness to engage in missionâinvesting position them as strategic partners for sustainable, inclusive housing. Combined with the innovative models of other commonâgood actors, these mechanisms can contribute significantly to Europeâs goal of expanding affordable, ecoâfriendly homes while limiting market speculation.
