Property prices in the mountain region are on the rise
The Second Homes Act (ZWG) has largely put an end to the construction of new second homes in mountain areas. However, demand and prices for existing second homes have risen sharply. This is shown by the ZWG monitoring of the Federal Office for Spatial Development.
The ZWG, which was passed in 2015, has now largely halted the construction of new second homes in mountain areas, the Federal Office for Spatial Development(ARE) informs in a press release. In cooperation with the State Secretariat for Economic Affairs, the ARE regularly monitors the effects of the law. According to the current monitoring, the impact of the ZWG on the construction industry and the hotel industry in the mountain region is low.
“On the other hand, it has become difficult for locals and workers in the mountain area to find affordable housing,” writes the ARE. However, the experts at the Federal Office do not attribute this exclusively to the ZWG. Rather, the low interest rate environment and the possibility of working independently of location have also increased the demand for second homes. As a result, the supply overhang of second homes identified in the first monitoring in 2021 has disappeared in many places. Instead, an increasing number of so-called old-law flats that are free for use are being put on the market as second homes.
The difficulties for the resident population, newcomers and employees to find affordable housing have led to “displacement and migration”, explains the ARE. Older people tend to move to more central valley communities, employed people to communities with affordable housing and the possibility to commute to work. Municipalities can restrict the conversion of primary to secondary residences with requirements for the creation of affordable housing. The Federal Office of Housing supports municipalities in an active housing location policy with the guide “Attractive Housing in Mountain Areas“.